National Top 5 Boom Town Hotspots 2016 – copyright hotspotting.com.au 1
National Top 5
Boom Town
Hotspots 2016
August to December 2016
Copyright hotspotting.com.au
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CODE OF CONDUCT - HOTSPOTTING
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National Top 5 Boom Town Hotspots 2016 – copyright hotspotting.com.au 3
Contents
Chapter 1: What are Boom Towns?
Page
5
Chapter 2: Hotspot “Core Categories”
6
Chapter 3: National Top 5 Boom Towns
7
1 Wagga Wagga NSW
8
2 Newcastle NSW
19
3 Cairns QLD
35
4 Bendigo VIC
49
5 Busselton WA
61
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National Top 5 Boom Town Hotspots 2016 – copyright hotspotting.com.au 5
Chapter 1
What are Boom Towns?
B oom Towns are significant regional centres with strong, diverse economies – and
boosted by specific events. These can include major industrial projects such as power
stations or wind farms, or major infrastructure developments such as new or expanded
hospitals, airports, universities, export ports or rail links.
Often such projects involve capital investment of $500 million or $1 billion or more and their construction and ongoing operation create significant numbers of jobs, which
places pressure on housing supply. This drives rents and property values higher,
presenting opportunities for investors who understand the dynamics and risks of such
markets.
Boom Towns are usually regional cities, but sometimes
they can be smaller towns or even capital cities. In the
recent past we have seen Darwin (a large regional centre,
as well as a capital city) experience property market upcycles influenced by major resources and infrastructure
developments.
Some obvious examples of Boom Towns are country
centres impacted by gas ventures, coal mining or iron
ore production. We hesitate to suggest such locations
because mining towns are among the riskiest of
residential property investments.
Investors who get in early can make big capital gains, but these types of locations exist
in a bubble which can burst if demand for resources drops, or the local mine closes, or
housing demand falls away after construction of the major project is completed.
In addition, the growing use of fly-in-fly-out workforces and temporary workers
camps means there is less demand for residential rentals than developers expect, often
resulting in over-supply.
Locations solely reliant on one industry or one project are vulnerable markets. Our
preference in selecting Boom Towns is to focus on regional centres which have an
economic life before and beyond the resources boom. These are locations with diverse
economies which are not solely dependent on a single industry for their prosperity.
They are rounded economies for which any boost from the resources sector is a bonus.
6
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Chapter 2
Hotspotting Core Categories
The hotspots to emerge in Australia in recent years have been strongly influenced by one or more of
the Hotspotting Core Categories – events or influences which create capital growth for property. The
areas spotlighted in this report have at least three of the Core Categories in their favour.
Transport
Infrastructure
Education-Medical
Infrastructure
Ugly Ducklings/
Cheapies with
Prospects
Urban Renewal
and
Govt Decisions
The Stayers
Ripple Effect
Lifestyle Features
Jobs Nodes
Boom areas
Sea Change and
Hill Change
New roads and train lines can create value growth. Industrial property benefits the most
from new motorways, but residential is also boosted. A major new road can open up
previously inaccessible areas or provide faster connections for commuters. Rail links and
bridges can have similar impacts on real estate.
Most major cities have education and medical infrastructure located in the one precinct.
North Melbourne has a universities precinct as well as major hospitals. Areas like this
attract strong accommodation demand from students, teachers, doctors, nurses and many
others. The suburbs surrounding such facilities tend to out-perform on capital growth.
Some suburbs were once shunned as downmarket but now are regarded as trendy. “Ugly
Ducklings” can transform into real estate swans. Richmond in inner Melbourne has made
that change, as has Bulimba in Brisbane. Whenever affordability is a key issue, Ugly
Ducklings with potential to change will do well.
Governments or Local Authorities can transform areas through policy decisions or
targeted action. Urban renewal programs have changed the character of suburbs,
sometimes turning waterside industrial areas into prestige residential. Regional policy
decisions – such as growth management plans – can also have an impact.
Some locations always seem to perform steadily. They’re the ones that provide at least
some growth each year, in good times and bad. While the property industry claims they
are mostly found close to the inner-city, our research indicates outer suburbs and regional
centres are more likely to be The Stayers than the expensive near-city suburbs.
Property up-cycles often begin with the inner-city suburbs. As prices rise, they become
unaffordable for many buyers – who seek less expensive property nearby. The growth,
therefore, ripples out – and continues to do so until it reaches the outskirts of the city.
Growth cycles can also ripple out from the capital city to regional towns and cities.
The most expensive real estate tends to be beside water or overlooking it. The ocean rates
highest (although climate change may alter that perception) , while rivers, canals and lakes
aren’t bad either. Homes fronting golf courses command price premiums, but not as high
as water. Buyers also pay premiums to live near “eat street” lifestyle precincts.
One reason inner-city suburbs often don’t excel on capital growth is that people prefer to
live as close as possible to their work – and many of the biggest employment nodes are a
long way from the CBD: airports, seaports, factories, light industrial precincts, centres of
transport and logistics, manufacturing plants and major shopping centres, among others.
Sometimes areas take off for specific reasons. Some towns in Western Australia and
Queensland have had real estate booms because of resources activity nearby. Development
of major industrial projects can have a similar impact. The key factor is jobs creation.
We’re (arguably) more drawn to live by the ocean than any other people on the planet. Sea
Change is less in the news today but migration to the beach remains a factor. Investors
need to be aware that economies based primarily on tourism and retirement can be fragile
and volatile. Some people escaping the city head for the hills, rather than the beach. The
Blue Mountains near Sydney and the Adelaide Hills are classic Hill Change destinations.
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Chapter 3
The National Top 5
Boom Towns 2016
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WAGGA WAGGA
Riverina Region, NSW




Strong population growth
Popular with first home buyers
Affordable housing
$1 billion in Defence projects
Suburb houses
Ashmont
Kooringal
Typical
prices
$225,000
$308,000
Suburb houses
Mt Austin
Wagga



Service centre for region of 180,000
$450 million hospital upgrade
$54 million freight hub

Expansion of Charles Sturt University
Typical
prices
$233,000
$356,000
Suburb units
Kooringal
Wagga
Typical
prices
$230,000
$240,000
Wagga Wagga, named Australia’s most family-friendly city in 2014, has good prospects for future
capital growth.
One of the many qualities that makes it worthy of consideration by property investors is the high
number of first-home buyers taking advantage of affordable properties in the area. Wagga Wagga
ranks No.12 among NSW locations for first-home-buyer benefits over the past 15 years, with most
of the top 10 being locations in the Sydney metropolitan area.
This strategic inland city is noteworthy for multiple economic drivers,
lack of dependence on mining and a low jobless rate. There’s an
expanding military presence (army and air force bases); education,
health and other community services for a region of 180,000 people;
and steady population growth.
Upgrades and expansions either completed or under way include projects at Charles Sturt
University and Wagga Wagga Base Hospital. Major spending on the region’s military bases is in
planning.
Location



Midway between Sydney and Melbourne (about 450km from both)
On the Murrumbidgee River, at the junction of the Sturt Highway and Olympic Highway.
Major regional centre for the Riverina and South West Slopes regions of NSW.
POPULATION & DEMOGRAPHICS
Population 2011: 63,900 (Census)
Population 2030: 80,000 (projected)
Ranked No.3 among inland regional centres for growth
Regional population: 180,000.
Source: ABS
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Economy and Amenities
Wagga Wagga is an important agricultural, military and transport hub for Australia. It is the main
regional centre for the Riverina district of NSW and also for the South West Slopes region. It
provides education, health and retail services for an area extending to Griffith in the west, Tumut in
the east and Cootamundra in the north.
Wagga Wagga was named
the country's most
Its location on the Sturt and Olympic Highways, and close to the
Hume Highway, halfway between Sydney and Melbourne, ensures
“family-friendly” city in
2014 by Suncorp Bank.
Wagga Wagga’s importance as a heavy truck depot for a number
of companies including Toll Holdings.
The city has major industrial precincts in Bomen and East Wagga Wagga. Major employers include
the Fonterra dairy company, Heinz and Cargill. Meat processor Teys employs 1,000.
Evocities
Wagga Wagga is one of seven cities that form part of Evocities, a project funded by the Federal
Government aimed at encouraging more people to relocate from Sydney to the regional cities and
take advantage of the NSW Government’s regional relocation grant.
Evocities lists Wagga Wagga employment prospects as being “medical & allied health, aviation,
education & training, engineering, construction, retail, property & business services, public sector
and hospitality”.
Education
It has a Charles Sturt University campus and three campuses of the Riverina Institute, which is a
collection of TAFE institutes headquartered in Wagga Wagga. The Primary Industries Centre on
250ha at North Wagga Wagga runs courses in agriculture and horticulture.
CSU Wagga accounts for 7.9% of the city’s GDP and 9% of full-time jobs.
The city has eight secondary schools and 22 primary schools.
Military presence
There is a major military presence, including the Wagga Wagga RAAF Base at Forest Hill (which has
the National Aerospace Training Centre) and the Australian Army base at Kapooka (which has the
national Army Recruit Training Centre), both just outside the city.
Wagga Wagga has a long history as a military City – the Air Force has had a base here for 70 years,
and the Army a base since World War II. The Navy trains around 100 aviation trainees each year in
conjunction with the Air Force. The military presence continues to increase, with infrastructure
expansion planned, in addition to the $160 million invested in the bases over the past three years.
Around 8% (1,590) of all NSW Defence Force employees are located in Wagga Wagga and, with
their families, they form an important part of the Wagga community socially and economically.
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The Australian Defence Force is the sixth largest employer in
Wagga Wagga and it is estimated that the local staff and subcontractors of associated companies supporting the ADF
number 9,000 across Wagga and the Riverina Region
according to Wagga Wagga Council.
Kapooka holds a March Out Ceremony each weekend – with
hundreds of supportive family and friends coming to the City
to witness graduation. This is reportedly one of Wagga’s
greatest tourist attractions which translates into overnight accommodation and increased
commercial activity for food, beverage and retail outlets.
Transport and access
Wagga Wagga retains suburban bus services and a station on the Sydney-Melbourne railway line,
with twice-daily fast rail services by CountryLink.
Wagga Wagga Airport has daily flights to Sydney and Melbourne – passenger numbers passing
through the airport have grown every year since 2002 and are now well above 200,000 per year.
The city is a one-hour flight from Sydney, with 58 flights per week.
Tourism
It is known as a city of gardens, including the Wagga Wagga Botanic Gardens which has desert
plants and species from Africa, China, Europe and the Americas. The city has a reputation fo r the
visual and performing arts.
The city attracts a large number of visitors who attend the many events held each year including
horse races, the Wagga Pro Am, a wine and food festival, Gumi Races on the Murrumbidgee River
(where entrants race in tyre tubes and other make-shift watercraft), Wagga Wagga Jazz and Blues
Festival, a garden festival and numerous sporting events.
There are two major shopping centres – Wagga Wagga Marketplace and Sturt Mall. There are also
numerous suburban shopping centres including South City, Lake Village and Kooringal Mall. The
CBD has hundreds of retailers headed by Big W, Myer and Target.
Property Profile
A third of households rent, which is above average for NSW and perhaps reflects the influence of
the military and educational institutions. About 35% own homes outright and 25% have mortgages.
Wagga Wagga is particularly popular with first-home buyers, with 5,369 buyers receiving first-home
owner grants between 1 July 2000 and 31 January 2016.
Wagga Wagga is one of The Stayers of NSW real estate. From 2000 to 2010 the market showed at
least some growth each year, with major growth spikes in 2004 and 2008 – although some parts of
the market contracted in the three years after 2010. From late 2013 into early 2014, annua l sales
numbers began to rise, with the trend continuing through 2015.
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The rising market has continued in 2016, according to valuation firm Herron Todd White.
HTW says that expansion is occurring around the edges of Wagga Wagga, in particular Estella,
Boorooma, Gobbagombalin, Forest Hill, Bourkelands, Lloyd and Uranquinty. All these areas have
seen 10% to 20% growth in vacant land values over the past two years.
The most sought-after locations are central Wagga Wagga and Kooringal. The median house price
for central Wagga Wagga is $356,000, while other suburbs have median house prices ranging from
$225,000 (Ashmont) to $233,000 (Mt Austin) and $408,000 (Bourkelands).
Most suburbs have recorded solid growth in the past 12 months, led by Kooringal where the
median price rose 10%.
Long-term, the median house prices for most of the city’s suburbs have grown an average of about
3% a year over 10 years.
APM indicates that gross yields for houses vary considerably from one suburb to the next with Mt
Austin and Ashmont the best, with yields around 6.6%.
Around 85% of Wagga Wagga dwellings are houses, with the rest comprising flats and units. The
median unit price is $240,000 for Wagga Wagga and $230,000 for Kooringal, according to
Australian Property Monitors. The typical gross yields for units are in the 5.5% to 6.1% range.
The vacancy rate in Wagga Wagga has seen spikes in December–January in four of the last five
years, according to sqmresearch.com.au. In most years, the rate has fallen to around 3–4% for the
remainder of the year and currently, it is 4.4%.
The housing market in the city can be summarised like this:Suburb
No. of sales
Median price
1-year growth
10-year
Median yield
average
Ashmont
55
$225,000
-7 %
1%
6.6 %
Bourkelands
67
$408,000
7%
2%
4.9 %
Kooringal
144
$308,000
10 %
3%
5.8 %
Mt Austin
76
$233,000
7%
2%
6.6 %
Turvey Park
74
$340,000
5%
3%
5.6 %
Wagga Wagga
191
$356,000
2%
3%
5.2 %
Source: Australian Property Monitors. “snr” is “statistically not reliable”. “10yr average” is the
average annual rise in median prices over the past 10 years.
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Future Prospects
Proposed Defence spending of $1 billion over the next 20
years will help to ensure Wagga Wagga’s economy remains
vibrant.
CORE INFLUENCES:
Government Policy,
Education-Medical, Boom
Towns.
During this time, the number of uniformed personnel in the Australian Defence Force is projected
to grow by about 5,000, from 57,500 to 62,400. Many of these recruits will pass through the
Defence Force recruitment training centres at Kapooka and Forest Hill, which are both marked for
$400 million upgrades.
The medical and education sectors also contribute to the equilibrium of Wagga Wagga’s economy.
The Wagga Wagga Rural Referral Hospital (formerly Wagga Wagga Base Hospital) is the largest in
the region, providing medical services to the wider Riverina area. It underwent a two-stage, $450
million re-development between 2012 and 2016. The facility now offers additional health services
and 56 extra beds.
At around the same time, the private Calvary Hospital underwent a $19 million expansion.
Rising numbers of students (now around 2,500) are attending Charles Sturt University (CSU). The
construction of a further 60 student accommodation rooms, adding to the 200 recently completed,
has created a building program totalling $40 million.
CSU also has plans to create a Murray Darling Medical School to encourage new doctors to work in
the regions. The proposal would see $46 million spent on delivering infrastructure across three
campuses, including Wagga Wagga and at 19 medical training centres.
Yet another proposed CSU project is an AgriSciences Research and Business Park to be co-located
with the Department of Primary Industries.
The University of NSW (UNSW) has also launched plans for a $50 million stand-alone medical school
in Wagga. It is competing with CSU for Federal Government funding approval.
The Riverina Oils & Bio Energy Pty Ltd (ROBE) facility at Bomen began operations in 2013. The single
largest Green Field Investment in the Agri/Food Processing Sector in the last five years in Australia,
ROBE has a crushing capacity of 500 tonnes of oilseeds per day and will produce 200 tonnes of
refined vegetable oil and 300 tonnes of vegetable protein meal per day for the poultry, dairy and
animal feed industries. ROBE employs 50 staff and expects annual revenue of around $125 million.
The Riverina Intermodal Freight and Logistics (RIFL) Hub, Bomen, has been in the planning for many
years. In July 2014, Wagga City Council announced it would partner with railway infrastructure firm
Traxion to develop the $70 million facility. But Traxion went into voluntary liquidation in April 2015,
followed by reports that it was replaced by international rail company, Genesee and Wyoming in
late 2015. Subsequent reports indicate that some funding is to be sourced from both State and
Federal Governments.
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The RIFL Hub is designed to encourage a shift from road to rail for freight transport in the region.
The project includes the construction of rail and road infrastructure, an intermodal container
terminal, agricultural bulk goods precinct and a rail related development precinct.
The RIFL Hub will be the only intermodal terminal on the main southern railway line able to load
and unload trains of the current 1,800 metre maximum length.
Projects currently impacting Wagga Wagga are:
INFRASTRUCTURE - EDUCATION FACILITIES
Project
Medical school,
University of NSW
Value
$50 million
Charles Sturt Uni,
south campus
redevelopment
Charles Sturt Uni,
AgriSciences Research
and Business Park,
Wagga Wagga
TBA
Status
Proposed.
UNSW is competing
with Charles Sturt Uni
for Federal Govt funds.
Proposed.
TBA
To be co-located with
the DPI.
Proposed.
To be opened by mid2017.
Impact
INFRASTRUCTURE - HEALTH AND MEDICAL FACILITIES
Project
Upgrade, Rural
Referral Hospital,
Wagga Wagga
Medical Centre,
2 Docker St
New ambulance
station, Fernleigh
Road, Turvey Park
Value
$450 million
Additional health
services and 56 extra
beds.
$5 million
A 3-storey medical
centre.
$4 million
Status
Completed.
A two-stage project
carried out between
2012 and 2016.
Approved.
Under construction.
Due for completion in
2016.
Impact
14 National Top 5 Boom Town Hotspots 2016 – copyright hotspotting.com.au
INFRASTRUCTURE – SPORT & ENTERTAINMENT
Project
Bolton Park upgrade
Exhibition Centre
expansion (Equex),
Kooringal Road
Motorsport complex,
Wokolena Rd
Value
$10.5 million
A multi-purpose
stadium.
$9 million
Expansion includes
clubhouse additions &
new multi-purpose
indoor courts.
$4 million
A 2.6km race track on
85ha.
Status
Approved.
Approved March 2013.
Impact
Approved.
Approved.
A N Aviation Wagga
INFRASTRUCTURE - GENERAL
Project
Upgrade of Wagga
Wagga’s levee bank
Wagga City Council
Wagga Courthouse
upgrade
Wagga City Council
Army Recruit Training
Centre, Kapooka
upgrade 1
Value
$18.8 million
Levee to provide
protection during
floods.
$17.2 million
$400 million
Army Recruit Training
Centre, Kapooka
upgrade 2
$120 million
RAAF Base Wagga,
Forest Hill upgrade 1
$400 million
RAAF Base Wagga,
Forest Hill upgrade 2
$40 million
Status
Approved.
Feb 2016: Is reliant on
Federal Govt funding
for completion.
Under construction.
Completion of the 2stage devt is expected
around mid-2016.
Proposed.
Upgrades would be
carried out from 2016
to 2026.
Proposed.
Upgrades would be
carried out from 2026
to 2036.
Proposed.
Upgrades would be
carried out from 2016
to 2026.
Proposed.
Upgrades would be
carried out from 2026
to 2036.
Impact
Jobs:
100 construction.
National Top 5 Boom Town Hotspots 2016 – copyright hotspotting.com.au 15
RESIDENTIAL DEVELOPMENT
Project
The Grange Lifestyle
Village
Turvey Park project
Alatalo Bros
Estella Rise
subdivision
Combined Devt Group
Brunslea Park Estate
development
Unit development,
former Staunton &
Weissel Ovals
Nash Bros Cons
The Mill
redevelopment
(Murrumbidgee Mill)
KannFinch
Apartments, Sturt St,
Wagga Wagga CBD
Value
$35 million
Over 55s lifestyle
village.
$34 million
A 90-lot estate of
medium-density
dwellings.
$110 million
370 homes to be
completed by 2018.
Status
Under construction.
TBA
Residential land
development at the
Wagga showgrounds.
$35 million
140 units.
Under construction.
200 houses already
built, 650 blocks still to
be developed.
Proposed.
DA lodged November
2014.
$35 million
84 apartments, office
space, retail space,
conference facilities.
Under construction.
TBA
A six-storey residential
and commercial
building.
Proposed.
Zoning laws were
changed in April 2016
to accommodate the
project.
Proposed.
DA lodged in
November 2013.
Under construction.
First resident moved in
June 2014.
Impact
16 National Top 5 Boom Town Hotspots 2016 – copyright hotspotting.com.au
COMMERCIAL DEVELOPMENT
Project
Wagga Marketplace
redevelopment
Industry Super
Property Trust
Sturt Mall upgrade
Dexus Property
Renewed Metal
Technologies
expansion
Enirgi Group
The Rules Club Wagga
hotel, Glenfield Park
Choice (Quality Hotels)
Southcity Shopping
Centre expansion
Value
$30 million
Includes 20 new stores
and an alfresco dining
precinct.
$33 million
Includes 24 shops, a
multi-level car park
and a Coles
supermarket
$50 million
Increase production of
lead batteries from
42,000 to 150,000 by
transferring operations
from a plant in Sydney.
$14 million
An 80-room hotel and
conference centre.
$30 million
First full-size Target
store in Wagga Wagga.
Teys abattoir upgrade $50 million
The plant will be able
to process 1,429
carcasses, an increase
from 1,275 per day.
Estella shopping
$13 million
centre, cnr Avocet and Includes a
Rainbow Drivs
supermarket, chemist,
café.
Status
Under construction.
Work began in June
2015 and is expected
to take 14 months to
complete.
Approved.
Approved by the
Southern JRPP
February 2014.
Impact
Jobs:
130 retail.
Proposed.
DA not yet submitted.
Enirgi Group has
bought the adjoining
site for the expansion.
Jobs:
100.
Under construction.
Work began in June
2015.
Jobs:
50.
Under construction.
Due for completion in
2016.
Approved.
Jobs:
300.
Approved.
The project went out
to tender in May 2016.
Jobs:
200.
National Top 5 Boom Town Hotspots 2016 – copyright hotspotting.com.au 17
INFRASTRUCTURE - TRANSPORT
Project
Riverina Intermodal
Freight and Logistics
(RIFL) Hub, Bomen
Wagga City Council
Kappoka Bridge
upgrade, Olympic
Highway
Freight train line, The
Rock to Boree Creek
Wagga Airport
upgrade
Eunony Bridge
replacement,
Murrumbidgee River
Value
$70 million
Intermodal container
terminal, bulk goods
precinct, rail and road
infrastructure.
$55 million
Will improve safety at
a notorious black spot
– 300,000 trucks cross
the bridge annually.
$9.4 million
A 56km railway line
will service the grain
industry.
$4 million
$9.8 million
Status
Deferred.
Funding remains an
issue after a private
investor went into
liquidation.
Under construction.
Completion expected
in 2016.
Impact
Economic benefit:
$20 million.
Under construction.
Economic benefit:
Work began in October $2.5 billion.
2015.
Proposed.
Funding will come
from Restart NSW
regional airports
program.
Proposed.
Wagga Wagga Council
RESOURCES AND ENERGY
Project
Gidginbung solar
farm, Temora
Epho
Riverina Solar Project,
Yoogali
Solar farm, Bomen
Southern Cross Energy
Value
$30 million
Status
Proposed.
Impact
$37 million
Would power 12,000
homes.
$18 million
Proposed.
Jobs:
100.
Proposed.
DA lodged in March
2016.
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National Top 5 Boom Town Hotspots 2016 – copyright hotspotting.com.au 19
NEWCASTLE
Central coast, NSW
Highlights
–
–
–
–
Key regional centre for NSW
World’s largest coal export port
$5 billion coal loading terminal
$1bil upgrade to airport/RAAF Base
Suburb houses
Adamstown
Adamstown Hts
Islington
Kotara
Mayfield
– $2 billion in residential construction
– Upgrade to Newcastle port rail links
– $350 million revitalisation of
Newcastle CBD.
Typical
prices
Suburb houses
Typical Suburb- units
prices
$510,000
$600,000
$510,000
$518,000
$450,000
Merewether
Shortland
Stockton
Wallsend
Waratah
$975,000
$379,000
$585,000
$400,000
$450,000
Adamstown
Merewether
Newcastle
Newcastle Wst
The Hill
Typical
prices
$376,000
$465,000
$575,000
$475,000
$440,000
Newcastle has a rising economy and property market, having
benefited from major new projects in the city and the nearby
Hunter region.
The city has delivered solid capital growth over the past three
years and in the past 12 months some Newcastle suburbs
recorded double-digit median price growth.
Key projects keeping the Newcastle economy strong include the CBD revitalisation, residential
construction, upgrades to transport infrastructure and expansion of the Newcastle port.
Newcastle is already the world’s biggest coal export port and major upgrades to export facilities
occur regularly. A $1 billion upgrade to the Newcastle airport and RAAF Base is under way.
The city presents an appealing formula for property investors: affordable prices, an overall sol id
growth record and major impetus from economic activity in and around the city.
Location





165km north of Sydney (two hour’s drive from Sydney via the F3 freeway).
Newcastle is the second largest city in New South Wales.
It sits beside the Tasman Sea at the mouth of the Hunter River.
LGA: Newcastle City Council.
Neighbouring LGAs: Port Stephens Council and Lake Macquarie City Council.
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Economy and Amenities
Newcastle is Australia’s sixth largest city and one of
its oldest. It has a busy harbour, many beaches and
plenty of elegant historic buildings – including the
Civic Theatre, Customs House, Station Master’s
Cottage and the Court House as well as rows of ironlaced terraced houses and a gothic-style Cathedral.
There is also Fort Scratchley – Australia’s only fort
that went to war.
POPULATION
Newcastle LGA 2011:
Newcastle LGA 2014:
LGA 2050 (projected):
Newcastle region 2011:
156,000
160,000
193,000
308,000
Source: ABS & NSW Dept of Planning
Accessible within a 40-minute drive of Newcastle are the surrounding areas of Lake Macquarie, the
Hunter Valley wine country and the holiday destination of Port Stephens.
Newcastle’s economy is based on its port and interaction with the Hunter Valley. Newcastle has the
world’s largest coal port, but the facility also handles aluminium, iron and steel, grain and woodchip exports.
Australian Property Investor magazine described the region like this: “Mention of the Hunter Valley
conjures up images of a rural area studded with vineyards. The lush area is also famous for its horse
studs. This combination of wine, horses and country living is making the area increasingly popular
for retirees and those opting for a change from the bustle of Sydney.”
An emerging industry in the
FAST FACTS: University of Newcastle
Hunter
region
is
creative

One
of the Hunter Valley’s biggest employers
industries, with about 5,000

24,000
students and 6,000 staff.
people employed in media
production, the performing arts,
advertising and internet services.
Between 2006 and 2011, the sector grew 11.7%, making it the fastest-growing in the state outside
of Sydney. The sector’s exports are worth about $1.4 billion to the state’s economy each year.
The Hunter Valley is also a key area for mining and power generation. Facilities in the region include
power stations such as Liddell and Bayswater, near Muswellbrook. The power stations are owned
and operated by AGL Macquarie. AGL took over the NSW Government power producer –
Macquarie Generation – in September 2014 to form AGL Macquarie.
AGL Macquarie produces 12% of the electricity needed by consumers in eastern Australia and 30%
of electricity needs in NSW.
Other assets owned by AGL Macquarie include the Hunter Valley gas turbines and the Liddell solar
thermal project. AGL Macquarie is the largest domestic buyer of NSW coal and employs over 650.
In June 2015, AGL opened a $310 million processing plant at Tomago, creating 300 construction
jobs.
National Top 5 Boom Town Hotspots 2016 – copyright hotspotting.com.au 21
Another major employer is the
airport. The Newcastle airport
runway is shared with the RAAF
Base Williamtown which means
civilian operations co-exist with a
military airfield.



FAST FACTS: Newcastle Airport
Worth $1.19 billion annually to local economy
3,346 direct & indirect jobs
1 million passengers each year.
Around 3,000 military and civilian personnel are employed at the base.
Property Profile
Newcastle appeals because many of its suburbs are affordable, relative to Sydney. It has also
delivered consistent price growth in recent years. After some decline in 2009, prices grew solidly in
many suburbs from 2010. The median house price for broader Newcastle put on double-digit
growth in 2012 and has continued to grow since 2013.
In its July 2016 edition of Residential Property Prospects 2016 to 2019 report, BIS Shrapnel predicts
Newcastle house prices will grow 6% over the three years to June 2019. The firm’s predictions are
always conservative and BIS senior manager Angie Zigomanis says economic factors such as
investment in the city centre and low unemployment rates have the potential to bring about a
better-than-forecast result in Newcastle.
Generally, Hotspotting regards Newcastle as one of Australia’s most under-rated markets. It has
strong prospects as an affordable alternative to Sydney, offering an attractive beach lifestyle,
proximity to the Hunter Valley and to Port Stephens, plus solid job prospects.
The impetus of the State Government's Urban
Renewal Strategy for Newcastle is becoming
clearly evident; building activity significantly
increased in FY2013, FY2014 and FY2015 –
especially unit construction – as the city strives
towards higher-density living to cater for
population growth.
Residential Building Approvals
Year
Houses Units Total
FY2015
295
526 821
FY2014
287
380 667
FY2013
313
136 449
Source: ABS
CoreLogic RP Data provides further confirmation of this, naming Newcastle & Lake Macquarie as
the second best performing regional market nationally (the best being Illawarra) in the 12 months
to March 2016. CoreLogic says house prices in the region grew 8.1% in the year to March to a
median of $495,000, while unit prices grew 6.3% to a median of $406,000 over the same period.
In the region’s rental market, house rents increased 1.3% to $400 per week over the year.
Over 100,000 new dwellings will be needed in the Lower Hunter region by 2031, according to the
NSW State Government.
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Vacancy rates vary across the city and with
new dwellings coming on line, a rise in
vacancy rates can be expected in some
areas until the stock is absorbed.
NEWCASTLE VACANCY RATES
P/code
2293
2299
2300
2303
Suburbs
Maryville, Wickham
Lambton, North Lambton
Newcastle inner-city
Hamilton, Hamilton East,
Hamilton South.
Source: sqmresearch.com.au
Vacancy rate
1.0 %
4.0 %
3.5 %
1.6 %
The affordability of Newcastle relative to
Sydney is shown in the median house
prices in the Mayfield suburbs ($435,000
to $450,000), Shortland ($355,000),
Wallsend ($379,000) and Waratah ($450,000), as well as the median unit prices in New Lambton
($326,000), Adamstown ($376,000) and Waratah ($311,000).
The Newcastle unit market can be summarised as follows:–
Suburb: units
Adamstown
Cooks Hill
Mayfield
Merewether
New Lambton
Newcastle
Newcastle West
The Hill
Wallsend
Waratah
No. of sales
Median price
1yr growth
10yr ave.
28
35
16
64
16
143
31
51
23
22
$376,000
$545,000
$370,000
$465,000
$326,000
$575,000
$475,000
$440,000
$367,000
$311,000
18 %
19 %
snr
9%
3%
8%
-9 %
8%
3%
15 %
3%
6%
5%
5%
5%
1%
3%
5%
4%
7%
Median
yield
4.9 %
4.7 %
5.6 %
4.5 %
5.4 %
4.4 %
4.8 %
4.8 %
5.4 %
5.3%
Source: Australian Property Monitors. “No. of sales” is the number of house sales in the past 12 months; “10yr ave.” is
the average annual rise in median house prices in the past 10 years. “Snr”: Statistically not reliable
National Top 5 Boom Town Hotspots 2016 – copyright hotspotting.com.au 23
The Newcastle housing market can be summarised as follows (the list includes many but not all of
Newcastle’s suburbs):–
Suburb: houses
Adamstown
Adamstown Hts
Broadmeadow
Cameron Park
Carrington
Cooks Hill
Fletcher
Georgetown
Hamilton
Hamilton East
Hamilton North
Hamilton South
Islington
Kotara
Lambton
Maryville
Mayfield
Mayfield East
Mayfield West
Merewether
Merewether Hts
New Lambton
New Lambton Hts
North Lambton
Shortland
Stockton
The Hill
The Junction
Wallsend
Waratah
No. of sales
Median price
105
77
34
147
50
66
61
42
100
16
21
55
28
84
69
31
219
47
29
163
22
176
61
63
78
75
24
13
284
85
$ 510,000
$ 600,000
$ 518,000
$ 535,000
$ 485,000
$ 768,000
$ 565,000
$ 526,000
$ 603,000
$ 848,000
$ 515,000
$ 895,000
$ 510,000
$ 518,000
$ 540,000
$ 598,000
$ 450,000
$ 450,000
$ 435,000
$ 975,000
$ 718,000
$ 576,000
$ 630,000
$ 500,000
$ 379,000
$ 585,000
$ 930,000
$ 680,000
$ 400,000
$ 450,000
1yr growth
-2 %
1%
15 %
9%
4%
25 %
6%
11 %
7%
snr
5%
16 %
2%
5%
8%
0%
8%
8%
4%
14 %
-8 %
5%
13 %
11 %
4%
5%
-14 %
Snr
3%
3%
10yr ave.
3%
5%
5%
4%
6%
6%
3%
6%
5%
2%
5%
6%
7%
5%
6%
6%
6%
6%
5%
6%
4%
5%
4%
5%
4%
5%
4%
-1 %
4%
5%
Median
yield
4.3 %
4.2 %
4.6 %
4.8 %
4.7 %
3.8 %
4.6 %
4.4 %
4.0 %
3.6 %
4.8 %
3.6 %
4.7 %
4.6 %
4.3 %
4.3 %
4.5 %
4.7 %
4.9 %
3.6 %
3.8 %
4.1 %
4.3 %
4.4 %
5.0 %
4.2 %
3.5 %
4.2 %
5.1 %
4.7 %
Source: Australian Property Monitors. “No. of sales” is the number of house sales in the past 12 months; “10yr ave.” is
the average annual rise in median house prices in the past 10 years. “Snr”: Statistically not reliable
24 National Top 5 Boom Town Hotspots 2016 – copyright hotspotting.com.au
Future Prospects
There are good prospects for real estate in Newcastle, based on
extensive spending on infrastructure and property
developments. There is $2 billion in residential building either
proposed or under way, with support from the Newcastle City
Council and the State Government.
CORE INFLUENCES
Boom Towns,
Government Policy,
Urban Renewal,
Transport Infrastructure.
A June 2016 map of Newcastle building activity shows 28
residential projects with a combined value of $1.6 billion in the construction pipeline, with more
proposals set to be lodged. Around 3,000 apartments will be added to the city’s housing stock as a
result, including 1,200 in the west end.
Mining and Resources
Despite the perception that the mining sector has deteriorated, the coal industry is an essential
pillar in the Hunter Valley. In FY2015, the mining sector supported around 3,400 businesses and
spent $3.4 billion on goods and services.
The coal industry accounted for a quarter of the Hunter Valley’s economy in 2015, though down by
$1.1 billion from the previous year, according to a report by the NSW Minerals Council.
The report, peer-reviewed by the University of Wollongong, says mining companies contributed
$4.8 billion into the Hunter’s economy in FY2015, including the $1.4 billion paid to 11,189 mining
employees.
Rail Infrastructure
There are upgrades to transport infrastructure impacting on Newcastle and the Hunter region.
These include upgrades to the rail system between Gunnedah and Maitland, near Newcastle.
The Australian Rail Track Corporation (ARTC) announced in 2009 plans to spend $1 billion on rail
upgrades in the Hunter region. The 10-year plan was to create a third track for the Nundah Bank,
plus two holding tracks for the Newcastle coal terminals.
The ARTC is also creating a multi-user train fuelling and stabling yard at Rutherford near Maitland,
according to the Newcastle Herald. The $125 million project will ease rail congestion around the
port terminals, by relocating the fuelling and provisioning of trains out of the port area.
A light rail system forms part of Newcastle’s inner-city revitalisation project and is predicted to
support an extra 10,000 jobs and 6,000 new homes by 2036.
Construction on the light rail project is expected to begin in 2017 and be operational by 2019. The
2.7km line will have six stops - Wickham, Honeysuckle, Civic, Crown Street, Market Street and
Pacific Park. The system will be able to move 600 people an hour in each direction during week
days.
National Top 5 Boom Town Hotspots 2016 – copyright hotspotting.com.au 25
Port of Newcastle
The 98-year lease to the Port of Newcastle Investments consortium,
made up of Hastings Infrastructure Fund and China Merchants Group,
was finalised in May 2014, delivering the state $1.5 billion.
The port is broken up into four precincts: Carrington, Mayfield, Kooragang and Walsh Point and
each has a different industrial and commercial focus.
Coal accounts for 95% of the volume of port trade, but the other 5% – the non-coal trade –
accounts for about one quarter of the value. Newcastle handles 20,000 containers a year, the cruise
ship industry is growing steadily and strong growth is expected in fuel.
The ongoing expansion of facilities is significant for the region’s economy. It is expected that the
port’s coal-loading capacity will triple once the expansions are completed. Current and future
expansions entail investment totalling about $9 billion.
Newcastle Coal Infrastructure Group (NCIG), which
includes BHP, Centennial Coal and Felix Resources, has
a $1.2 billion expansion under way which will double
the capacity at the port’s third terminal.
Port Waratah Coal Services (PWCS) has received
approval for another $5 billion terminal (T4) to
provide an additional capacity of 70 mtpa.
A cruise ship terminal, shortlisted for funding allocated to the Hunter Infrastructure and Investment
Fund by Restart NSW in 2015, is proposed for Dyke Point, Carrington. The 2015 cruise season
was worth $15–17 million to the Hunter and is projected to bring 18,000 guests in the coming year,
according to Tourism Hunter. If a cruise ship terminal is built, the number of visitors could double
within five years.
CBD Revitalisation
Work on revitalising the CBD began in December 2014, with the $73 million transport interchange
at Wickham expected to open in 2017. The interchange will integrate trains, buses, taxis, light rail,
cyclists and car drop-off and pick-ups, alongside a light rail service from Wickham to the beach.
The Hunter Street Mall will also receive a serious makeover, transforming the CBD into 50%
residential and 50% commercial/retail. Included in the plans are an “eat street”, an entertainment
precinct and around 500 apartments.
Making a significant contribution to the CBD revitalisation is GPT UrbanGrowth’s East End project.
Approved in April 2016, the development will occupy 1.66ha bounded by Hunter, Newcomen, King
and Perkins Streets. It will encompass the historic David Jones building and deliver 565 apartments,
4,900m² retail space and 2,700m² commercial space.
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The $200 million proposal has been designed so that it can be independently staged, thus attracting
a broad range of private investors and developers.
University of Newcastle
The State Government plans to move sections of Newcastle University into the CBD to help
revitalise the inner-city. Key projections for the university over the coming decade include
increasing its student population by a third to 40,000, making it one of the top three regional
universities in Australia.
Construction has commenced on the $95 million university campus, with the NSW Government
contributing $25 million towards the cost. By 2020, the university expects to have moved its
business, law and creative arts faculties entirely to the CBD.
Newcastle Airport
Stage one of the $80 million terminal expansion, including a new arrivals hall with dedicated
customs, immigration and quarantine facilities, was opened in February 2015. The new facilities
have paved the way for international flights.
Williamtown RAAF Base
One of the squadrons created by the Federal Government’s $12 billion purchase of F-35A 58 Joint
Strike Fighters will be based at Williamtown. Its facilities will undergo a $1 billion upgrade to
accommodate the F-35As with maintenance on the planes creating an extra 250 jobs. The
construction work, which began in May 2015, includes a runway extension, new crew headquarters,
maintenance facilities, a systems centre and weapons loading centre. The fleet of F-35As is
expected to be operational by 2018.
Lockheed Martin, US defence plane manufacturer, has also opened a $6 million facility in the
Williamtown Aerospace Centre. The facility is expected to employ 70 engineers and technicians in
support of various RAAF radar and surveillance programs.
BAE Systems, a global defence, aerospace and security company, signed a $126 million contract
with the Australian Defence Force in August 2015. The contract involves operational maintenance
and training of Air Force pilots to handle the Joint Strike Fighters when they arrive.
Hunter Expressway
With the completion of the Hunter Expressway in 2014, access between Newcastle and the Hunter
Valley, and Sydney and the Hunter region, has become faster and easier.
The expressway provides 40km of dual divided carriageway between the F3 Freeway at
Seahampton and the New England Highway west of Branxton.
National Top 5 Boom Town Hotspots 2016 – copyright hotspotting.com.au 27
Glendale master plan
Glendale is likely to become a major regional centre and economic powerhouse with the Lake
Macquarie City Council drawing up plans for the area. Covering 106ha, the region is c apable of
accommodating 4,000 new homes and 10,000 residents.
Council officials believe the town’s position at the geographical centre of the Lower Hunter,
available land and its proximity to rail and road transport make it prime for redevelopment.
A Council report says the Glendale regional centre has enough zoned land to meet future
commercial and residential development beyond 2030.
Lake Macquarie City Council also has a $92 million infrastructure plan for Lake Macquarie which
aims to cater for an extra 12,500 people by 2025.
Lake Macquarie Transport Interchange (LMTI)
The LMTI is designed to ease congestion at a crucial intersection and improve accessibility in a key
part of the Newcastle region. The LMTI will be a major connection between Glendale and Cardiff
and is touted to unlock $1.5 billion of economic potential of nearby industrial and commercial
areas, including the Pasminco site ($750 million); Knoll Group land ($630 million); and Stockland
Glendale expansion ($120 million).
It also has the potential to create 10,000 jobs and bring an extra $332 million a year into the region
by 2020, according to a report in the Newcastle Herald in July 2014. Providing heavy road users with
better access to the F3 freeway and the Port of Newcastle is listed as another benefit.
The project is to be delivered in two stages, with stage one under construction. Funding has been
shared by Lake Macquarie Council ($10 million), State Government ($12.45 million) and the Federal
Government ($15 million). Stage two, yet to be funded, may include a train station at Glendale.
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The following pages provide an updated matrix of current projects in the Newcastle region:ENERGY AND RESOURCES
Project
Mangoola coal mine
expansion
Value
$1.1 billion
Planned to increase
production 30% to
Xstrata/Glencore
13.5Mtpa.
Wallarah 2 coal mine, $1 billion
near Lake Macquarie An underground mine
that will take 3yrs to
Korean Resources
build.
Corp
Cobbora coal mine
$1.3 billion
Expected to mine 20
Cobbora Holding Co
mtpa for 21 years.
Mt Pleasant coal
$2 billion
mine expansion near Open cut thermal coal
Muswellbrook
mine to provide 10.5
Mtpa for 21yrs.
MACH Energy
Status
Under Construction.
Approved by PAC in
May 2014.
Impact
Jobs:
150 operational.
Proposed.
Amended DA
submitted July 2016.
Jobs:
300 operational.
Economic benefits:
$600 million pa.
Abandoned.
Site to be resold for
farming instead.
Approved.
Coal & Allied sold the
mine to MACH. First
production is due in
late 2017.
Jobs:
730 construction;
750 operational.
Jobs:
500–600 construction;
200–350 operational.
Impact
INFRASTRUCTURE - TRANSPORT
Project
Williamtown RAAF
Base upgrade to
accommodate new
squadron of F-35As
Value
$1 billion
Runway extension,
crew HQ, systems
centre, maintenance,
and weapons centre.
Status
Under construction.
Work started in May
2015. Fleet of F-35As
is expected to be
operational by 2018.
Hexham Bypass
$600 million
15km of new road
between the M1 and
Raymond Terrace.
$1.2 billion
Expansion will double
capacity at port’s
third terminal.
Proposed.
State Government
Further expansion of
export facilities,
Port of Newcastle
NCIG (a consortium of
energy/mining firms).
Under construction.
Jobs:
4,100 construction.
National Top 5 Boom Town Hotspots 2016 – copyright hotspotting.com.au 29
INFRASTRUCTURE – TRANSPORT Cont.
Project
T4, Kooragan coal
loader
Value
$5 billion
Would expand the
port’s facilities by
Port Waratah Coal
70mtpa. $12mil in
Services
support infrastructure
Port dredging, south $80 million
arm of Hunter River
Will create 10 new
berths to service bulk
Newcastle Port Corp
cargo.
Duplication of rail
$285 million
line across the
Will remove a rail
Liverpool Range, near freight bottleneck and
Murrurundi
increase coal haulage
from the Gunnedah
ARTC
Basin.
Inner-city bypass,
$280 million
Newcastle
A 3.4km bypass
between Rankin Park
State Government
and Jesmond.
Status
Approved.
Approved October
2015.
Tourle St Bridge and
Cormorant Rd
duplication
Under construction.
Completion expected
by late 2018.
Newcastle Light Rail
NSW Govt
$100 million
Will improve the link
between Newcastle,
the city's airport and
Port Stephens.
$510 million
The rail service will
run from Wickham to
Pacific Park.
Wickham interchange $73 million
Newcastle cruise
terminal
$20 million
Impact
Jobs:
1,500 construction,
80 operational.
Proposed.
Currently addressing
EIS concerns.
Proposed.
Proposed.
Feedback on the
design closed June
2016.
Proposed.
The first tenders were
called for in Feb 2016.
To be completed by
late 2018.
Under construction.
Completion expected
in 2017.
Proposed.
Jobs:
100 construction.
Economic benefits:
$15–17 million.
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COMMERCIAL DEVELOPMENT
Project
Air Warfare
Destroyer Project
Forgacs
Ammonium nitrate
plant, Kooragang Is.
Incitec Pivot
Ammonium nitrate
storage and
distribution centre,
Kurri Kurri
Bulk fuels terminal
expansion, Mayfield
Stolthaven
Black Hill industrial
estate
Trinity Point Marina
project
Johnson Property
Group
Aerospace Centre,
Williamtown
Stockland shopping
centre expansion,
Glendale
Mayfield East Village
shopping centre
Coles
Stockland Green Hills
shopping centre
expansion, Maitland
Value
$550 million
Forgacs building 37
components for ships
built in Adelaide.
$600 million
Status
Under construction.
$50 million
To be leased by
transport company,
Toll.
$50 million
To be built on the old
BHP steelworks site.
Proposed.
TBA
Suitable for freight
and warehousing.
$388 million
198 residential lots,
250 tourism units,
hotel, restaurant,
conference centre,
188 marina berths.
$500 million
89ha: 103 lots for
high-tech industries,
plus hotel,
commercial park.
$100 million
50 new stores.
Impact
Approved.
Approved in January
2016.
Approved.
Community feedback
was sought in April
2016.
Proposed.
PAC approved
concept plans in Nov
2013.
Under construction.
Construction began in
February 2016.
Under construction.
Jobs:
400 construction;
50 operational.
Jobs:
3,500 direct;
9,000 indirect.
Jobs:
8,500.
Approved.
Approved July 2015.
$17 million
Coles supermarket,
14 specialty shops.
Proposed.
Plans lodged October
2015.
Jobs:
130.
$377 million
Work will be carried
out in three stages
and includes a new
David Jones store.
Under construction.
Construction
expected to be
finished in 2018.
Jobs:
1,500.
Retail space will double
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COMMERCIAL DEVELOPMENT Cont.
Project
Hunter Corporate
Park, Tomago
Value
$50 million
A 300ha industrial
centre.
Status
Deferred.
DA withdrawn in June
2015; impact on
threatened species to
be revised.
Impact
Jobs:
250 construction,
2,500-4,500 operational.
Economic benefit:
$2.65 bil over15 years.
$50-100 Million
2,000ha to be
transformed over 10
years to allow 5,300
homes.
$55 million
Stage 1 has cinemas
and bowling alley.
$88 million
Stage 2 includes 30
extra shops.
Proposed.
Rezoning proposal
lodged in May 2016.
Jobs:
5,000.
Tomago Aluminium
Residential project,
former Kurri Kurri
aluminium site
Norsk Hydro
Westfield Shopping
Centre, Kotara
expansion
Westfield Shopping
Centre, Kotara
expansion
Holiday Inn express
hotel, King St,
Newcastle West
$26 million
170 rooms and retail.
Under construction.
Stage 1 under
construction
Proposed.
Plans lodged for
further expansion in
Oct 2015.
Proposed.
Jobs:
315 construction;
215 retail.
INFRASTRUCTURE – MEDICAL, EDUCATIONAL, GENERAL
Project
Newcastle Private
Hospital expansion
Healthscope
NeW Space campus
Hunter St
University of
Newcastle
State law court
complex,
Newcastle CBD
State Government
New university
campus,
Newcastle CBD
Value
$80 million
Includes additional
consulting rooms,
theatres and beds.
$95 million
NeW Space will use
technology and
innovative teaching
methods to engaging
students in new ways.
$90 million
The largest courts
complex in NSW
outside Sydney.
Status
Under construction.
$95 million
Under construction.
Completion expected
in late 2016.
Approved.
The project is to be
ready for students by
2017.
Completed.
Impact
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RESIDENTIAL DEVELOPMENT
Project
Kings Hill suburb
project,
Raymond Terrace
Port Stephens Council
Housing project,
Catherine Hill Bay
Rose Group
Market Square & CBD
redevelopment,
Hunter Street Mall
UrbanGrowth-GPT
Wirraway residential
project,
Thornton
Defence Housing
Australia
Defence Housing
Australia residential
project: Fort Wallace
and Fern Bay
New suburb,
Pasminco site,
Cardiff industrial area
Icon Central, Hunter
St, Newcastle CBD
Jemalong Devts
Value
$1 billion
Would eventually
house 11,000
residents.
Status
Proposed.
$500 million
935 homes to be built
at Catherine Hill Bay,
Gwandalan and Nords
Wharf.
$400 million
6,000 homes.
Under construction.
Construction began
late 2014.
TBA
500 homes – 250 for
Defence; 250 nonDefence.
Under construction.
TBA
300 houses across the
two locations.
Proposed.
$500 million
The redevelopment
includes 800 houses,
light industry and
commercial projects.
$150 million
253 apartments,
commercial and retail
space.
Under construction.
Construction began
Nov 2013.
Under construction.
Work began in
December 2014.
Completed.
Impact
Jobs:
10,000.
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RESIDENTIAL DEVELOPMENT Cont.
Project
East End project
Newcastle CBD
Value
$200 million
565 units; 4,900m²
retail space; 2,700m²
commercial space.
$100 million
150 apartments and a
4.5 star hotel.
Status
Approved.
Approved in April
2016.
Impact
Under construction.
Completion expected
in 2017.
Jobs:
200.
TBA
323 residential lots.
Proposed.
$130 million
197 units.
Proposed.
DA lodged April 2016.
Miller Property Corp
Manufactured home
village, Arthurs St,
Mayfield
TBA
100-lot village of
manufactured homes.
Proposed.
DA lodged mid-2014.
David Hughes
Shortland Waters
Golf Club and
retirement village
complex , Wallsend
$66 million
300 golf course villas
and 127 aged care
beds.
Proposed.
UrbanGrowth-GPT
Arena - residential
and hotel project,
Newcastle Beach
Stronach Property
Gillieston Heights
project, Cartwright St
and Kiah Road
Verve Residences,
West End
Aveo Group
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CAIRNS
Far North Queensland
Highlights




Strong population growth
Chinese investment & tourism
$8 billion resort
$450 million upgrade to hospital


•

$1 billion airport upgrade
$110 million port project
Bruce Highway upgrade
Retail projects
Suburb - houses Typical prices Suburb – units Typical prices
Bayview Heights
Bungalow
Earlville
Edge Hill
Holloways Beach
$385,000
$360,000
$370,000
$467,000
$388,000
Cairns City
Cairns North
Manoora
Manunda
Parramatta Park
$405,000
$240,000
$175,000
$144,000
$247,000
Cairns has mounted an economic comeback, which is having spinoffs for its property market.
Having been previously hit hard by the Global Financial Crisis, which reduced overseas tourist
numbers on which the Cairns economy largely depended, Cairns has recently shown strong signs of
economic revival.
In the 1980s, Cairns was one of the stars in the Australian property firmament, boosted by surging
tourism and investment from Japan. Those glory days faded and Cairns was overtaken by
Townsville as the most important regional city in North Queensland.
However, there are plenty of positive signs that Cairns is now challenging again, boosted by tourism
and investment from China, a proactive local council, spending on infrastructure and success in
efforts to diversify the city’s economy.
House prices have grown in the past 12 months, with some suburbs recording double-digit rises.
Location




1,700km north of Brisbane
An hour by boat from the Great Barrier Reef
Located on Trinity Bay
Beaches include: Machans Beach, Holloways Beach,
Trinity Beach, Kewarra Beach, Clifton Beach and
Palm Cove.
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Economy and Amenities
Cairns has suffered in recent years as an
economy and as a property market, because
its two biggest industries are both volatile
sectors: tourism and sugar.
However, it has staging a revival, with
overseas visitor numbers rising steadily
again and other industries emerging.
POPULATION AND DEMOGRAPHICS:
One of Australia’s fastest growing cities
Population 2011 (Census):
156,000
Projected population by 2022:
200,000
Unemployment Cairns Feb 2016:
7.9%
Unemployment Qld Feb 2016:
5.9%
Source: ABS
According to Tourism Australia, the Cairns
region is the 4th most popular destination for international tourists in Australia after Sydney,
Melbourne and Brisbane. Tourism is worth $4.7 billion annually to the tropical north: it employs
14,600 people directly and 9,000 indirectly.
Cairns is popular with foreign tourists because it’s close to many attractions: the Great Barrier Reef,
Daintree National Park, Cape Tribulation, Cooktown and the Atherton Tableland.
In 2015, four direct international flight services were introduced: Jetstar from Bali, SilkAir from
Singapore and Philippine Airlines from Manila and Auckland. This resulted in Cairns recording
700,000 overseas holiday-makers spending nearly $1 billion.
TOURISM - FAST FACTS




Domestic visitors to Cairns spent $1.84 billion in FY2015, the highest in 16 years.
Cairns and Port Douglas are in the top 10 holiday destinations in Australia, according to TripAdvisor.
Cairns voted most popular Queensland venue for overseas companies to hold meetings.
Cairns voted the 2014 World’s Best Congress Centre by the International Association of Congress Centres.
Cairns was ranked third in the Ctrip Best Tourism Destination Awards 2014. Ctrip is China’s largest
online travel agency. Cairns, Tokyo and Taipei were the only international destinations on the list.
Cairns International Airport is Australia's 7th busiest domestic airport and 6th busiest international
airport, and growing. Around 4 million passengers passed through the airport in FY2014, a number
that increased to 4.8 million with a 23% increase in overseas passengers in FY2015. Regular flights
connect Cairns to cities such as Tokyo, Osaka, Bali, Singapore, Auckland, Hong Kong, Guam,
Brisbane, Sydney and Melbourne.
The land around Cairns is still used for sugar cane farming, although this land is increasingly under
pressure from new suburbs as the city grows. Sugar mills operate in Gordonvale and Babinda.
Cairns serves as the major commercial centre for the Far North Queensland and Cape York
Peninsula Regions. It is a base for the regional offices of various government departments.
Construction of retail facilities has been contributing to the Cairns economy recently. In 2014, the
Redlynch Central shopping centre was expanded while the city welcomed a new Masters Home
Improvement Centre and a $47 million Bunnings warehouse, which opened in March 2015.
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A November 2013 report said James Cook University (JCU) was worth $600 million to Queensland's
economy, with 90% of the income injected into Townsville and Cairns. JCU has around 4,000
students enrolled in its Cairns campus while Central Queensland University opened a campus in
mid-2015, bringing an extra 2,400 students to Cairns.
Property Profile
The Cairns market was a lukewarm performer in the five years before 2014, with growth ranking it
towards the bottom of the list of key Queensland locations. Its history has shown volatility with a
spike in price growth in 2004 and another around 2007, but with price decline in between.
But the market has changed significantly. As sales numbers increased, growth began to appear in
2014 and continued in 2015. Cairns remains a rising market in 2016, according to valuation firm
Herron Todd White. HTW expects 2016 sales volumes to rise steadily and flow through to price
increases averaging about 5%.
In the past 12 months, many Cairns suburbs have recorded growth in their median house prices,
including double-digit increases in Palm Cove (up 29%), Cairns North (up 17%) and Manoora (10%).
Longer term, i.e. the average annual growth in median house prices over 10 years, most suburbs
has averaged 4–5% per year.
The 12-month outcomes in unit prices are erratic, as is often the case with unit median price data.
Double-digit increases in median prices were experienced in Bungalow (up 42%), Earlville (23%) and
Edge Hill (13%). The rises for Bungalow and Earlville are from a low base and are based on relatively
small sales samples, so should not be interpreted as rises of property values of that magnitude.
The long-term growth rates for unit prices are low – and negative in some suburbs – which reflects
periods of developer oversupply. This is often a regular presence in tourism-related markets.
There has been a recent uplift in building activity in the last two years. According to the ABS, the
number of residential building approvals increased from 462 in FY2013, to 634 in FY 2014 and 669
in FY2015.
The table below provides a comparative breakdown of the value of total building approvals for the
last four years, showing a big increase in FY2014.
Value of total building approvals, Cairns
Financial year
Residential
2014-15
$228.41 mil
2013-14
$221.55 mil
2012-13
$166.54 mil
2011-12
$142.21 mil
Non-residential
$85.38 mil
$164.42 mil
$64.73 mil
$97.45 mil
Total
$313.79 mil
$385.97 mil
$231.27 mil
$239.66 mil
Cairns remains a reasonably affordable market. Most suburbs have median house prices
somewhere in the $300,000s.
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Units are affordable in many Cairns suburbs, including some with median prices below $200,000.
There is a high content of units in the Cairns market. The tables on the following pages, which list
sales in major Cairns suburbs in the past 12 months, record 1,583 house sales and 807 unit sales.
Units have been poor performers on capital growth in recent years, with prices undermined by
over-supply. Increased investor activity and strong tenant demand saw the region’s vacancy rate
drop in 2014. Statistics from the REIQ March quarter 2016 Vacancy Rate Report are encouraging.
The report shows Cairns’ rental vacancy level has dropped from 2.5% to 2.1%.
The most positive message in Cairns regards rental returns. The median yield for houses is generally
in the 5.5%–6% range, while units are mostly above 7%; Woree is higher at 8.2%.
Cairns vacancy rates
Postcode
4870
4878
4879
Suburbs
Cairns, Mooroobool, Edge Hill, Manoora, Parramatta Park
Yorkeys Knob, Trinity Park
Kewarra Beach, Trinity Beach, Clifton Beach
Source: sqmresearch.com.au
The Cairns unit market can be summarised as follows:UNITS
No. of sales
Median
1-year
price
growth
Bungalow
35
$226,000
42 %
Cairns City
130
$405,000
3%
Cairns North
177
$240,000
2%
Earlville
23
$215,000
23 %
Edge Hill
26
$206,000
13 %
Holloways Beach
17
$176,000
4%
Manoora
79
$175,000
9%
Manunda
60
$144,000
snr
Mooroobool
35
$200,000
snr
Palm Cove
86
$298,000
6%
Parramatta Park
39
$247,000
7%
White Rock
23
$249,000
7%
Woree
36
$149,000
2%
Yorkey’s Knob
41
$211,000
-6 %
Vacancy rate
Growth
average
2%
2%
0%
4%
4%
0%
2%
1%
2%
-3 %
0%
1%
-5 %
1%
1.7%
1.7%
2.8%
Median
yield
8.0 %
6.4 %
7.5 %
7.1 %
7.6 %
7.0 %
7.9 %
7.8 %
7.5 %
6.3 %
7.4 %
7.1 %
8.2 %
6.3 %
Source: Australian Property Monitors – “No. of sales” is the number of unit sales over 12mths; “Growth average” is the
average annual growth in median unit prices over 10yrs. Snr: statistically not reliable.
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HOUSES
Bayview Heights
Bentley Park
Brinsmead
Bungalow
Cairns North
Clifton Beach
Earlville
Edge Hill
Gordonvale
Holloways Beach
Manoora
Manunda
Mooroobool
Mt Sheridan
Palm Cove
Parramatta Park
Smithfield
Westcourt
White Rock
Whitfield
Woree
The Cairns housing market can be summarised as follows:No. of sales
Median
1-year
Growth
price
growth
average
61
$385,000
-3 %
3%
149
$355,000
1%
3%
120
$449,000
4%
3%
31
$360,000
3%
4%
25
$490,000
17 %
4%
46
$546,000
0%
3%
69
$370,000
6%
3%
77
$467,000
-4 %
3%
107
$340,000
7%
4%
39
$388,000
4%
3%
43
$308,000
10 %
3%
54
$310,000
-8 %
2%
113
$370,000
3%
4%
157
$370,000
1%
3%
39
$741,000
29 %
5%
35
$415,000
7%
3%
227
$415,000
1%
4%
26
$365,000
4%
3%
56
$330,000
8%
4%
67
$480,000
-10 %
4%
42
$350,000
3%
4%
Median
yield
5.5 %
5.5 %
5.2 %
5.9 %
5.1 %
4.7 %
5.7 %
5.1 %
5.6 %
5.5 %
6.1 %
5.8 %
5.8 %
5.4 %
4.7 %
5.7 %
5.5 %
5.8 %
6.0 %
5.1 %
5.9 %
Source: Australian Property Monitors – “No. of sales” is the number of unit sales over 12mths; “Growth average” is the
average annual growth in median unit prices over 10yrs. Snr: statistically not reliable.
Future Prospects
The Cairns revival is being underpinned by multiple factors. Tourism, which has traditionally been
the key to Cairns prosperity, has revived – boosted by growing visitor numbers from China, Japan
and the UK – while growing expenditure on infrastructure is helping to broaden the city economy.
Infrastructure development, one of the greatest catalysts to economic and real estate growth,
includes upgrades to the airport, the sea port and the hospital. A major resort has been approved
for Yorkey’s Knob and the Council is offering developers infrastructure discounts on high-value CBD
and “major activity centre” development projects.
Other evidence of future growth in Cairns was revealed in a report on population growth from the
Queensland Schools Planning Commission. It indicates student numbers may rise 5,600 over the
next two decades. The report says the Mt Peter area may need four new primary schools and a high
school by 2031 to keep up with the rising population in the area. The expansion of existing primary
schools in the Gordonvale, Trinity and Woree areas may also be necessary by 2021.
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- Highway upgrades
The plan to upgrade an alternative route to the often-flooded Bruce Highway has been hailed as a
lifeline for the Far North. It will take six years to complete, but sealing 155km of the Hann Highway
from Lynd Junction (320km south-west of Cairns) to Hughenden is seen as vital for the region. The
Cairns Post reported analysts have calculated the $45 million upgrade will provide benefits worth
$100 million for the tourism, cattle, mining and transport industries over the next 30 years.
- Flood mitigation
Several suburbs with a history of flooding are marked for $17 million of improved drainage. The
drainage management plan covers the suburbs of Whitfield, Edge Hill, Manoora, Aeroglen and
Cairns North. Reliant on state and federal funding, the work will be carried out in stages and
ultimately, it is hoped the improvements will help to reduce insurance premiums.
- Resources activity
Consolidated Tin Mines (CTM), owner of the Mt Garnet Processing Plant, is investing $360 million
across Far North Queensland from 2014–2017 according to the Cairns Chamber of Commerce. CTM
is also awaiting approval of a new tin mine at Mt Garnet.
Other mining projects totalling around $1 billion are also in the pipeline. More details on these can
be found in the tables at the end of this report.
- Developer incentives
Cairns Regional Council implemented a scheme in 2011 to encourage investment by offering
developers discounts on council fees and charges. Back then, the scheme discounted infrastructure
fees for 32 construction projects, adding $43.5 million directly to the local economy. To date, the
program has supported regional construction projects valued at $443 million, with $68 million
worth of projects already completed or under construction. The program will run until 30 June
2017.
Cairns Regional Council also offers investment incentives to businesses wishing to locate, expand
and retain their operations in the Cairns region in key strategic industries.
- Naval base expansion
The Ports North dredging plan, aimed at attracting more cruise ships, includes a wharf expansion
and developing two swing basins. The State Government has declared the Ports North submission a
"significant project", with plans to widen the outer channel by 50m, the inner channel by 85m and
to deepen the inlet by up to 1.7m.
The project is estimated to cost between $80 million and $110 million. Tourism Tropical North
Queensland chief executive officer Alex de Waal says: “improved access is expected to result in
large cruise ship numbers growing by 63 annual visits by 2025. (This will) inject $634 million into the
regional economy and generate up to 679 extra flow-on jobs per year by 2041.”
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The port is not exclusive to large cruise ships though - smaller boats carrying around 860,000 reef
and cruise tourists use Ports North facilities each year.
The port is also a busy cargo port, handling both domestic and international freight. In the 12
months to October 2015, five million tonnes of cargo including sugar, molasses, silica sand, zinc,
fuel, fertiliser, log product, livestock and general cargo was handled by Far North Queensland’s
ports. During that time, sugar exports doubled from 170,717 tonnes to 389,872 and fuel deliveries
at Cairns rose from 520,797 tonnes to 539,215.
Warning! Property insurance
In the aftermath of floods and cyclones in recent years, many North Queensland property owners
have incurred large increases in insurance premiums - in some cases, by between 200% and 800%.
Several proposals have been submitted to the government’s Northern Australia Insurance
Premiums Taskforce to combat the issue, with an outcome to be announced in 2016.
In the meantime, RACQ and Suncorp have announced they will offer discounted insurance
premiums to property owners who have cyclone-proofed their homes. The discounts will range
from 5% to 20%.
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Projects impacting on the Cairns market can be summarised as follows:INFRASTRUCTURE - EDUCATION
Project
James Cook University
Cairns college,
Smithfield
Benny Wu
Cairns Innovation
Centre, James Cook
University
Cairns Special School,
Woree
Value
Status
$30 million
Approved.
Will house 300
students initially, 1,000
in the long term.
TBA
Funded by the State
Govt’s $180 million
Advance Queensland
package.
$25 million
Will cater for 120
students.
Impact
Proposed.
Expected to be
operational by 2017.
Under construction.
Expected to open in
2017.
Jobs:
100.
Status
Approved.
State Govt announced
approval in March
2013.
Impact
Jobs:
3,500 construction,
9,000 operational.
State Government
INFRASTRUCTURE - TRANSPORT
Project
Cairns Airport
redevelopment
Value
$1 billion
20yr plan to redevelop
the airport, including a
2nd runway.
Bruce Highway
upgrades:
1. White Rock to
Bentley Park
$4.1 billion
Widen the highway
from 4 to 6 lanes.
2. Edmonton to
$481 million
Gordonvale
Duplication of the
highway.
3. Peninsula
$210 million
Development Rd
To be spent over 10yrs
Port of Cairns shipping TBA
channel expansion
Accommodate larger
ships and enable
FNQ Ports Corp
expansion of HMAS
Cairns Navy Base.
Approved.
Approved.
Proposed.
Proposed.
Currently undergoing
EIS.
Improve safety, cut
travel times, ease
congestion and
improve flood
immunity along
1,800km highway.
Jobs:
100 construction.
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INFRASTRUCTURE - HEALTH and GENERAL
Project
Cairns Hospital
upgrade (formerly
known as Cairns Base
Hospital)
Cairns Performing Arts
Centre (aka Cairns
Cultural Precinct)
CRC
Cairns Convention
Centre roof
replacement
Value
$455 million
Extra 168 beds and
ICU.
Status
Under construction.
Due for completion in
2016.
$77 million
The old Cairns Civic
Theatre will be
demolished and
replaced with a 940seat theatre.
$13 million
Under construction.
Construction began in
early 2016 and will
take 18 months to
complete.
Impact
Jobs:
150 construction.
Under construction.
Scheduled for
completion in late
2016.
Jobs:
150.
Status
Proposed.
Is likely to proceed
when the Bruce Hwy is
upgraded (sometime
in FY2017) and will be
developed over 20
years.
Approved.
Coordinator-General’s
and EIS approval
granted in Nov 2012.
Impact
Jobs:
2,800.
Approved.
Jobs - Stage 1:
3,750 construction,
11,000 operational.
Jobs - Stage 2:
3,500 construction,
9,000 operational.
COMMERCIAL DEVELOPMENT – GENERAL
Project
Edmonton Industry
and Business Park
Pregno Family
Investments
Ella Bay Integrated
Resort, 88km south of
Cairns
Satori Ella Bay
Aquis Great Barrier
Reef Casino Resort,
Yorkeys Knob
Tony Fung
Value
$400 million
212ha site; 250-bed
hospital, business &
technology parks,
homemaker centre,
tavern, recreation and
sport.
$1.4 billion
450ha, 5 resorts, 540
homes; a village
precinct; 18-hole golf
course and swimming
lagoon.
$8 billion
8 hotels with 7,500
rooms, 2 casinos,
shops, convention
centre, 2 theatres, 18hole golf course, reef
lagoon, aquarium.
Jobs:
9,100 construction;
760 operational.
Economic benefit:
$256 million.
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COMMERCIAL DEVELOPMENT – GENERAL Continued
Project
Value
Hinchinbrook Harbour $450 million
and Resort, Cardwell
600 homes, new
marina and resort will
The Passage Holdings
replace the resort
destroyed by Cyclone
Yasi in 2011.
Palm Cove Harbour
$75 million
and Marina
A lagoon and 140
marina berths.
Cairns Aquarium and
$50 million
Reef Research Centre 3-level facility on
4000m2 block.
Local businessmen and
private investors
Status
Proposed.
Work would be staged
over 10 years.
Adventure Waters
$45 million
Water Park, Smithfield A world class aquatic
theme park.
Adventure Waters
(Paul Freebody)
Deferred.
Jobs:
Approved by CRC in
340 construction,
2009. A business
200 operational.
partner withdrew in
late 2015; replacement
financiers sought.
Approved.
Acacia Court Hotel
redevelopment
Benny Wu
Paradise Palms Resort
and Country Club
redevelopment
Darren Halpin and a
group of partners.
Sheraton Mirage Port
Douglas upgrade
Half Moon Bay Cairns
development
Gasparin Group
$80 million
The number of rooms
is to be increased from
136 to 407.
$550 million
The club is to be
upgraded and 800 new
units built.
$200 million
Includes a new
convention centre,
refurbishment, a gated
community and new
golf course.
$700 million
A leisure,
entertainment, tourist
and residential resort.
Impact
Proposed.
Under construction.
Construction began in
2015; due for
completion in 2017.
Jobs:
350 construction,
80 operational.
Under construction.
Upgrade began in
September 2015.
Under construction.
Stage 1 is scheduled to
be completed in mid2016.
Proposed.
Jobs:
200 construction.
National Top 5 Boom Town Hotspots 2016 – copyright hotspotting.com.au 45
COMMERCIAL DEVELOPMENT – GENERAL cont.
Project
Pier shopping centre
redevelopment
Value
TBA
C3 development,
Sheridan St
$550 million
796 units, commercial
and retail in three
CIU1 (Frank Gasparin & towers.
Peter James)
Shopping centre,
$50 million
Smithfield
Includes supermarket,
specialty shops,
Dexus Property Grp
hardware store.
New cinemas,
$10 million
Smithfield shopping
centre
Dexus Property Grp
Woolworths
supermarket,
Gordonvale
Australian Patrol Boat
Group contract
Etheridge Integrated
Agricultural Project,
Georgetown
Integrated Food &
Energy Devts
Rydges Tradewinds
Cairns hotel upgrade
GA Group Australia
TBA
Service station, nine
retail stores and fast
food outlet.
$2 billion
Construction of 21
naval patrol boats.
$2 billion
Includes a sugar mill,
meat processing plant,
ethanol refineries, a
biodiesel plant and
accommodation.
TBA
To be upgraded to a 56 star establishment.
Status
Proposed.
Construction expected
to begin in 2016.
Approved.
Work is expected to
begin in late 2016 or
early 2017.
Impact
Approved.
Jobs:
500 construction.
Jobs:
100 direct;
240 indirect.
Approved.
Work is expected to
begin in 2016.
Approved.
Abandoned.
The contract was
awarded to a West
Australian firm –
Austal.
Proposed.
June 2016: Undergoing
EIS.
Proposed.
GA Group bought the
property for $34mil in
March 2016.
Jobs: 600.
Economic Benefits:
$100 million over
seven years.
Jobs:
1,780 construction;
1,000 operational.
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RESIDENTIAL DEVELOPMENT
Project
Mt Peter Master Plan
Satterley Property
Group
Edmonton Town
Centre master plan
Residential project,
Manoora
Urban Properties
Caravonica devt
Botanica Property
Group
Bluewater master
planned community
Brookfield Residential
Properties
Nova 8, residential &
commercial project,
Spence St
Aspial Corp/Hutchison
Builders
WCL – Central Park,
81-83 Spence St
Unit development,
Yorkeys Knob
Raw Fusion &
Lancecombe
Value
$400 million
3,300ha with 18,000
dwellings for 40,000
people, shopping
centre and schools.
TBA
Shopping centre,
residential area,
dining, entertainment
and offices.
$20 million
Status
Approved.
Construction expected
to begin in mid-2016.
$200 million
Comprises 1,000
dwellings, a lagoon,
gardens, walking trails,
sporting fields and
cafes.
$250 million
700 home sites, hotel,
108 marina berths,
retail and a new road
between Trinity Beach
and Bluewater.
$400 million
1,250 apartments and
an office tower.
Approved.
Approved by CRC
March 2015. Project
will take 15 years to
build.
$200 million
Six residential towers,
one commercial.
TBA
54 units.
Proposed.
DA submitted in
October 2015.
Approved.
Impact
Proposed.
Council approved “in
principle” support in
June 2012.
Under construction.
Completion due late
2016.
Jobs:
100 in construction.
Under construction.
Jobs:
60 construction,
30 operational.
Under construction.
Work began Feb 2015.
Stage 1 to be
completed in 2017.
Jobs:
1,000 construction,
1,300 operational.
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RESOURCES & ENERGY
Project
Value
Mt Emerald wind farm $380 million
near Tolga
63 wind turbines to be
built to power 75,000
Ratch and Port Bajool
homes.
Mt Garnet Tin Project $125 million
Consolidated Tin
Mines
Silica quartz mine;
“Lighthouse mine”,
Mt Surprise
Auzminerals Group
Watershed project,
Mt Carbine
Vital Metals JV with
Japan Oil, Gas and
Metals Corporation
Kidston gold mine
hydro-electric power
plant
Genex Energy
Status
Approved.
Construction expected
to begin in late 2016.
Impact
Jobs:
150 construction,
15 ongoing.
Proposed.
At feasibility stage.
Jobs: 50–120.
$120–150 million
Mine and produce high
quality silica quartz
sand processing
operations.
$100 million
Tungsten mine. 6,000
tonnes to be shipped
to Japan, the US and
Korea.
Proposed.
Economic benefit:
$1.5 billion.
Approved.
DNR granted mining
leases Dec 2013.
Jobs:
300 construction,
120 operational.
Economic benefit:
$270 million.
$282 million
The former gold mine
would be transformed
into a hydro-electric
plant.
Proposed.
As a former mine,
much of the
infrastructure is
already in place.
Jobs:
200 construction.
48 National Top 5 Boom Town Hotspots 2016 – copyright hotspotting.com.au
Nobody knows Melbourne like we do.
For a smart and profitable investment or the right
home for your budget, speak with Melbourne’s most
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Founder and Bestselling Author
Miriam Sandkuhler
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National Top 5 Boom Town Hotspots 2016 – copyright hotspotting.com.au 49
BENDIGO
Regional Victoria
HIGHLIGHTS
 Strong regional centre
 Solid population growth
 Proximity to Melbourne
 Diverse economy
 Airport upgrade




$5 billion Regional Rail Link
$630 million hospital redevelopment
$250 million Evergreen Waters project
$1.3 billion Australian Defence Force
contract awarded to local business
Suburb - houses Typical prices Suburb - houses Typical prices
Bendigo
Eaglehawk
Golden Square
$385,000
$280,000
$300,000
Kangaroo Flat
North Bendigo
Strathdale
$302,000
$291,000
$422,000
Bendigo has long been one of Victoria’s key regional centres,
with growth thanks to its steady local economy, proximity to
Melbourne and good transport links to the capital – especially
now the $5 billion Regional Rail Link has been completed.
It has shown steady long-term price growth but remains
affordable.
Its economic prospects have improved with the $630 million
re-development of Bendigo’s hospital, private sector plans to
develop the city’s first master-planned residential community, and the awarding of a $1.3 billion
Defence contract to a Bendigo-based business.
Bendigo benefits economically from a number of major companies which are based locally but
perform nationally – including Thales, the company that received the Defence contract recently.
Location

130km north-west of Melbourne

On the Calder Freeway and the
Bendigo railway line

LGA: City of Greater Bendigo.
POPULATION & DEMOGRAPHICS
Population 2015
108,500
Population 2055 (forecast) 200,000
Victoria’s third largest city.
Source: ABS
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Economy and Amenities
The Greater Bendigo Planning Scheme of 2015 describes Bendigo’s
economy in these terms:
The economy of the City of Greater Bendigo is diverse and derives much of
its wealth from the regional role of Bendigo. In addition to a significant
retail and industrial base, tourism, agriculture, forestry, mining and mineral
and stone resource exploitation are important elements of the economy.
Commercial development in Bendigo is based around retailing and financial
institutions. Bendigo Bank is a major national and regional bank. The
Bendigo Stock Exchange is one of only three licensed stock exchanges in
Australia. The exchange provides a local focus for small to medium sized companies that would
otherwise not be able to list as public companies on the Australian Stock Exchange.
The retail sector is the largest employer with approximately 5,500 people employed in 800 retail
establishments. The economic output of the municipality is substantial at $3.2 billion per year.
Manufacturing is 24.6% of the total regional output and is based around the food processing,
textiles and manufacturing, car components and high technology engineering sectors.
Manufacturing remains the largest employer of full-time employees.
Bendigo produces a rural product worth about $183.5 million, mainly through cropping, grazing,
viticulture and through more intensive rural industry, such as poultry and pigs. It is estimated that
the annual value of mining to the municipality is $66.2 million.
According to the Bendigo Council, the manufacturing sector is worth $2.2 billion and contributes
6,936 direct and indirect jobs to the Greater Bendigo economy.
Major employers include heavy engineering company Thales Australia, biotechnology company
Intervet, Australia Defence Apparel and Empire rubber factory. Thales regularly receives major
contracts to build vehicles for the military, including a $205 million contract announced in July
2012. Another $1.3 billion contract was secured in October 2015. (Details of the latter can be found
under Future Prospects, at the end of this report.)
Bendigo is connected to Melbourne via the Calder Freeway and Bendigo rail line. Bendigo Airport is
undergoing an upgrade, including a runway extension and new facilities to handle larger aircraft.
Tourism Victoria figures published in 2014 revealed tourism injects $1.75 million a day ($642 million
annually) into the Bendigo–Loddon economy while tourism-related employment accounts for 6,500
jobs. In FY2015, 37,700 international visitors visited the Goldfields and spent $37 million.
Bendigo’s tourism industry is based primarily on its gold mining history. Key attractions include the
Central Deborah Gold Mine, Discovery Science and Technology Centre, and Bendigo Tramways; the
latter being the recipient of the heritage and cultural tourism award in the 2014 RACV Victorian
Tourism Awards.
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The Golden Dragon Museum features the history of Chinese people in Bendigo from the gold rush
of the 1850s to the present day. The Bendigo Art Gallery is one of the oldest and largest in regional
Australia.
Bendigo regularly attracts major events, including the annual Australian Goldfields Open snooker
tournament (an international event televised in 60 countries in July 2014) and the three-day
Australian Sheep and Wool Show which attracted 30,000 visitors and contributed $7 million into
the local economy in 2015. The Victorian junior basketball championships were hosted by Bendigo
in 2013 and 2014.
Bendigo also has a new 1,000-seat theatre which is attracting international performances.
There is a significant education sector, including Bendigo Regional Institute of TAFE, the Bendigo
campus of La Trobe University, Bendigo Senior Secondary College and Catholic College Bendigo.
About 5,000 students are enrolled at La Trobe University, which has 400 full-time employees, while
around 11,000 students attend Bendigo TAFE.
La Trobe and Charles Sturt University are fostering medical facilities through planned medical
schools in three locations, including Bendigo, at a cost of $40 million.
Bendigo services a large agricultural and grazing area on the Murray Plains north of the city.
Bendigo's intensive farming industry employs about 1,000 people and generates $147 million for
the local economy each year.
Hazeldene’s Chicken, which processes 23.4 million chickens each year, employs 600. The company
recently underwent a $20 million expansion, while another major agricultural presence in Bendigo
is dairy product manufacturer, Parmalat.
Property Profile
Affordability and good rental returns are the standout features of
the Bendigo house market.
In 2012, most of the suburbs which make up the Bendigo market
resisted the price decline which characterised some markets
around Australia, including Melbourne. This continued in 2013
and 2014.
Home ownership:
34% own their homes
34% have mortgages
21% rent privately
5% rent social housing.
Source: 2011 Census
Bendigo has delivered solid growth in median prices throughout the past decade, with annual
growth above 5% per year from 2000 to 2008 (including double-digit growth in several of those
years). Values dipped briefly in 2009 before recovering in 2010 and thereafter. Most suburbs in the
Bendigo market have long-term growth rates of 4-5% per year, though central Bendigo is higher at
6% per year.
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Stronger capital growth began to return in 2015 and in the last 12
months, good performances have been delivered by Bendigo (up
9%), Kennington (up 8%) and Strathdale (up 6%).
Building approvals:
Year Number
FY2015
1,038
FY2014
1,105
FY2013
1,107
The Bendigo City Residential Strategy identifies the need to build an
average of 820 dwellings per year between 2014 and 2031. In recent
years building approvals have consistently been above 1,000 per
year.
Source: ABS
The strategy also aims to increase the population that lives within a 1km radius of Bendigo's CBD
from 700 to 3,000. Eleven sites across the CBD have been earmarked as holding potential for
development.
New stock caused vacancy rates to
creep above 3% in some areas
during 2014.
Currently vacancy rates in most
areas are below 3%.
Vacancy rates
Postcode
Suburbs
Vacancy rate
3550
Bendigo, West Bendigo,
Ironbark, North Bendigo
Maiden Gully
Golden Square, Kangaroo Flat
Eaglehawk, California Gully
3.3%
3551
3555
3556
2.9%
1.5%
2.1%
Source: sqmresearch.com.au
Median rents range from $250 per
week in Ironbark to $320 in
Strathdale.
APM data indicates that median yields for most suburbs are generally in the 4.5% to 5.9% range.
The Bendigo house market can be summarised as:
Location
Bendigo
California Gully
Eaglehawk
East Bendigo
Golden Square
Ironbark
Kangaroo Flat
Kennington
Long Gully
North Bendigo
Strathdale
No. of sales
126
75
83
29
153
23
182
98
61
58
81
House median 1yr growth
$385,000
9%
$250,000
-4 %
$280,000
2%
$310,000
snr
$300,000
-3 %
$251,000
snr
$302,000
0%
$349,000
8%
$235,000
-6 %
$291,000
2%
$422,000
6%
Growth rate
6%
3%
4%
3%
4%
1%
3%
4%
4%
5%
5%
Median yield
4.6 %
5.9 %
5.3 %
4.8 %
5.1 %
4.8 %
5.2 %
4.6 %
5.4 %
5.2 %
4.5 %
Source: Australian Property Monitors. “No. of sales” is house sales in the past 12 months.
“Growth rate” is the average annual growth in the median house price over the past 10 years.
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Future Prospects
Population growth is expected to be a key driver of housing demand
in Bendigo in the next 15 years, according to the Department of
Environment, Land, Water and Planning’s Victoria in Future report.
The report says the City of Greater Bendigo’s population can expect
to grow from 110,000 in 2016 to 145,000 in 2031, an increase of 31%.
This is consistent with existing trends identified by the ABS which
show the population rising from 93,000 in 2005 to 108,500 at June 2015.
CORE INFLUENCES:
Transport
Infrastructure,
Government Policy,
Hill Change.
Greater Bendigo, Ballarat and Greater Geelong combined are expected to be responsible for half of
all regional growth in Victoria to 2031.
A strength of the local economic growth and development in Bendigo is that it is well planned,
according to Tom Taylor, head of National Australia Bank’s international economics team. In August
2015, he identified three advantages Bendigo has over other regional areas:
1. Diversification and variety of industry which helps when one sector is not performing well;
2. A council with effective processes and systems in place for planning; and
3. Good housing prices and lack of congestion which encourage people to live in Bendigo.
This augurs well for population growth and the Council’s long-term Hospital Precinct Structure Plan.
The plan was completed in July 2014 and will be implemented over 30 years. It will see mixed-use
development, residential projects and improved traffic flow in the vicinity of the new hospital.
At present, the White Hills-Ascot and Strathfieldsaye communities are two of the three fastestgrowing communities in regional Victoria, with increases in population of 4.6% and 4.1%
respectively in FY2015, according to the ABS.
City of Greater Bendigo strategy manager Trevor Budge says access to affordable housing, jobs,
health facilities and a university education are the main reasons people relocate to Bendigo.
Evidence of this growth can be seen in the value of building permits for FY2015 when $860 million
dollars’ worth of building permits were reported, compared with the $509 million in FY2014.
Meanwhile, changes to the Greater Bendigo Planning Scheme in March 2016 will allow more
commercial and residential development in the CBD and around the hospital precinct. The Council
is also establishing a separate frame work for Strathfieldsaye, which is forecast to grow from 5,700
in 2016 to 13,000 by 2036, while Epsom, Marong and Maiden Gully have been identified as new
village centres.
Meanwhile, East Bendigo has been marked as a key area for future industrial development.
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Train services and the Regional Rail Link
The $5 billion Regional Rail Link, which provides standalone tracks for trains from Geelong, Ballarat
and Bendigo to central Melbourne, was completed in June 2015. The upgrade has separated
regional and city rail services (Bendigo trains were often caught in a bottleneck behind metro trains
once they reached the city), thus shortening commuting times.
In addition, the State Government has rebuilt the Epsom railway station (on the fringe of Bendigo),
allowing direct services to Southern Cross.
New highway and road upgrades
A four-lane highway is planned for Bendigo’s east. The road, which would link Kangaroo Flat and
White Hills, using new and existing roads, is contained in the Bendigo Road Transport Strategy.
There is considerable community protest, as the four-lane highway will displace existing homes.
Developmental work on the Bendigo Road Transport Strategy continues to be carried out, but it
may be some time before it comes to fruition.
Meanwhile, Mitchell Street in Bendigo’s CBD has recently undergone a $3.8 million redevelopment.
Mining development
Gold mining in the Bendigo region remains a relevant industry. The City of Greater Bendigo says a
major gold project is located at Fosterville, and mining operations have been approved at
Eaglehawk, Kangaroo Flat and Costerfield.
In May 2016, GBM Gold resumed exploration and mining around Dunolly where reports suggest 22
million oz. of gold are located, while Bendigo Mining NL has a $35 million underground exploration
project at Kangaroo Flat.
The Fosterville gold mine, reportedly one of the biggest gold mines in Victoria, produces around
90,000–100,000 oz. per annum.
Maldon Gold Operation has two underground mines which are expected to process 150,000tpa.
Maldon Gold was acquired by A1 Consolidated Gold in June 2015. A1 Consolidated Gold managing
director Dennis Clark said the company would start producing about 30,000 oz. of gold, with
the potential for $35 million in profits in the first three years.
Navarre Minerals discovered gold nuggets in 2012 at its Tandarra prospect 40km north of Bendigo.
Navarre said this indicated high-grade gold mineralisation consistent with previous discoveries on
the Bendigo goldfields. In June 2014, Navarre indicated it would advance the project by spending
$3 million over the next four years.
The Augusta gold and antimony mine at Costerfield, owned by Mandalay Resources, is in the
process of expanding. (Antimony is an alloy used in solders, bullets and plain bearings.) Mandalay
said in March 2014 that the mine would continue to operate for another four years. Mandalay
employs 200 and contributes $40 million into the local economy each year.
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Education
La Trobe University has pledged $50 million towards five projects which will open up the Bendigo
campus to the community. The aim is to attract students who would not normally consider higher
education and tempt adults to undertake mature age studies.
Forming part of a 15 year master plan, the five projects are:
1.
2.
3.
4.
5.
A new bus interchange;
A dedicated engineering building;
An entry plaza;
An extension to the existing library;
An upgrade to the lighting on the sports field.
The plans are designed to make the campus more accessible, thus increasing interaction between
community and university.
Residential development
The Marong Township has been identified by the Council as a future satellite town with 8,000
residents by 2030.
“Marong is within a 15 minute drive of the Bendigo CBD and is expected to become a sought-after
place to live in the future,” the council said. “It’s important we put the necessary planning in place
to ensure development is undertaken in a sustainable manner. The strategy also identified Jackass
Flat, Huntly, Strathfieldsaye and Maiden Gully North/East as new residential areas.”
In September 2013, the Council adopted a long-term plan to develop Maiden Gully. The area’s
population is around 4,500 but projected to reach 10,000 by 2030. In March 2016, the Council
approved 14ha for subdivision into 130 residential lots.
Projections by .id the population experts concur that the
aforementioned locations are marked for the greatest
growth by 2036. Around 11,000 new dwellings are expected
to be spread across four suburbs: Huntley, Maiden Gully,
Marong-Rural West and Strathsfieldaye.
Suburb
No. of new
dwellings
Huntley
3,287
Maiden Gully
2,637
Marong - Rural West
2,206
Strathsfieldaye
3,045
Total
11,175
Other developments that are in planning include:
Source: ABS
 a 600-lot development in Strathfieldsaye where a
consortium led by Villawood Properties wants to
create the Eastern Precinct estate;
 a 120-unit project by Bendigo Health near the North Bendigo Recreation Reserve;
 Riverside Group’s restoration of the former Gillies pie factory into inner-city apartments;
 development of the former Bendigo Psychiatric Hospital site into residential lots.
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Retail
The Bendigo Marketplace has recently received a $7 million makeover, attracting new retailers,
while Kennington Village Shopping Centre opened in 2014.
The former Bendigo Mining Exchange has been sold and will be converted into cafes, restaurants, a
delicatessen, distillery, office spaces and short-term accommodation.
Tennis complex
Bendigo Tennis Association, in conjunction with the City of Greater Bendigo, plans to build a “world
standard” tennis complex capable of attracting Davis Cup fixtures to Bendigo.
The Federal Government has contributed $7.6 million towards the redevelopment of the existing
Nolan Street complex. Tennis Australia and the State Government are also supporting the project.
Projects impacting the Bendigo region include the following:INFRASTRUCTURE - GENERAL
Project
Value
Harcourt Rural
$40 million
Modernisation Project 60km of new pipeline
will provide customers
Coliban Water
with year-round access
to piped water.
Status
Under construction.
To be completed by
2017.
Impact
INFRASTRUCTURE - HEALTH AND MEDICAL FACILITIES
Project
New hospital Bendigo
Exemplar consortium
(Lend Lease, Capella,
Siemens and Energy
Union)
St John of God
Bendigo Hospital redevelopment
Value
$630 million
The new hospital will
have 372 beds, 10
theatres.
Status
Under construction.
July 2016: Stage 1 is
85% complete.
$41 million
72 extra beds and two
extra operating
theatres.
Under construction.
Completion of Stage 1
is expected in late
2016.
Impact
Jobs:
770 construction;
1,000 operational.
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INFRASTRUCTURE - TRANSPORT
Project
Ravenswood
Interchange upgrade
VicRoads
Bendigo airport
upgrade
Value
$86 million
Upgrade the existing
Calder Hwy/Calder
Alternative Hwy
intersection.
$16 million
Stage 1: extra hangar
space and taxiways;
Stage 2: a new
runway; Stage 3: a
business park.
Status
Under construction.
The Federal Govt is
contributing $45mil,
the State Gove $41mil.
Impact
Jobs:
800.
Under construction.
Stage 1 completed in
Aug 2014. Work on
Stage 2 began in
March 2016.
Jobs:
84.
Economic benefits:
$35 million.
Status
Approved.
Scheduled to begin in
mid-2017.
Impact
Jobs:
300.
COMMERCIAL DEVELOPMENT – GENERAL
Project
Australian Defence
Force manufacturing
contract
Value
$1.3 billion
Includes making 1,100
armoured vehicles and
1,000 trailers.
Thales Australia
Broiler farm, Axedale- $7 million
Goornong Rd,
Would process
Axedale
300,000 birds.
Proposed.
DA lodged June 2015.
‘Karee Farm’ poultry
farm, Avonmore
$5 million
Would house 100,000
egg-laying chickens.
Proposed.
DA lodged early 2016.
TBA
20 apartments to be
added.
Proposed.
DA lodged early 2016.
Specialised Breeders
Aust.
Hotel Shamrock
upgrade
Owner: Jim Hogan
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RESIDENTIAL DEVELOPMENT
Project
Woodend Estate
Value
$130 million
295 retirement units.
Status
Under construction.
Impact
Prestige Lifestyle
Estates
Fortuna Villa redevt
TBA
Residential (70-80 lots)
Paul Banks
and tourism site.
Huntly housing project TBA
800 lots.
Integra
Gillies factory site
$35 million
re-devt, Garsed St
The old pie factory site
is to be transformed
Riverside Group
into 120 apartments.
Evergreen Waters
$250 million
housing development, 700 dwellings across a
Jackass Flat
60ha site.
Simonds Devts
Via Furniture site
refurb, Mundy St
Russell Parsons
Maiden Gully - Forest
Park sub-division
Birchgrove Property
Residential project,
Marong
Birchgrove Property
Golden Square land
development,
Aspinall St
Heathcote Lifestyle
Village
Heathcote Lifestyle
Village
Approved.
Approved by the State
Govt in Aug 2014.
Under construction.
Proposed.
Under construction.
$7 million
Revamp of former
retail building as 26
units.
$400 million
1,400 homes and a
community hub.
Under construction.
Completion expected
in 2016.
$65 million
226 lots.
Approved.
$6 million
86 residential lots.
Approved.
$29 million
89 residences and
community centre.
Approved.
Approved in April
2015.
Approved.
Jobs:
2,500 over 7yrs.
Will house 3,300
residents.
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INFRASTRUCTURE – SPORT AND RECREATION
Project
Bendigo Stadium
upgrade
Bendigo Stadium Ltd
Value
$19.8 million
4,000-seat arena to
cater for various
sports.
Kangaroo Flat Aquatic
Centre
$30 million
A new 50-metre pool.
City of Greater
Bendigo
Bendigo Soldiers
Memorial Hall
upgrade
$4 million
The upgrade would
enable the hall to host
travelling exhibitions.
Status
Approved.
Contract awarded in
January 2016. The
State Govt will chip in
$5mil, Bendigo Council
$1.8mil.
Approved.
Work is expected to
begin sometime in
2016.
Impact
Proposed.
Funding yet to be
sourced.
INFRASTRUCTURE – COMMUNITY FACILITIES
Project
Recreation facilities,
Marist College
Bendigo
Value
$8 million
Bendigo Council and
Marist College each
contributed $4mil.
Status
Under construction.
Completion expected
in early 2017.
Impact
Status
Under construction.
Completion expected
in 2018.
Impact
Bendigo Council JV
Marist College
INFRASTRUCTURE – EDUCATION
Project
La Trobe University
upgrade, Bendigo
campus
Value
$50 million
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BUSSELTON
South-west coast, WA
Highlights




Growing population
Three new suburbs planned
Margaret River wine region
Emerging cruise ship industry
Suburb houses
Broadwater
Busselton


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Strong tourism-based economy
$120 million hospital upgrade
$145 million airport upgrades
$70 million foreshore plan
Typical
prices
Suburb houses
Typical
prices
Suburb units
Typical
prices
$456,000
$530,000
Dunsborough
Wst Busselton
$630,000
$442,000
Dunsborough
Wst Busselton
$585,000
$338,000
Busselton has been voted Western Australia’s top tourist town three times since 1995. It has fine
surf beaches and is regarded as the gateway to Margaret River wine region, as well as the events
capital of regional WA.
The Busselton economy is being boosted by
spending on infrastructure, including
upgrades to its hospital and its airport.
Its growing popularity with FIFO workers is
also boosting the property market.
The market has generally been the leading performer on price growth in regional WA over the past
two years, according to reports from the Real Estate Institute of Western Australia. Sales activity
and price growth slowed in the second half of 2015, but Bus selton remains a solid market with
good long-term prospects.
Location




240km south of Perth, and 50km north
of Margaret River
On Geographe Bay
2.5 hours by car from Perth via the
South Western and Bussell Highways
LGA: City of Busselton.
POPULATION & DEMOGRAPHICS
Population (2011 Census):
30,000
Projected population by 2026: 55,000
Median age:
39
Aged over 55 – Busselton:
29%
Aged over 55 – WA:
24%
Source: ABS
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Economy and Amenities
Mention Busselton at a barbeque and two conversations will emerge: surfing and Margaret River
wines. These two mainstays have created a robust tourist destination.
In January 2012, the newly-formed City of Busselton set out to become the events capital of
regional WA. Now, the City has numerous events which bring significant social and economic
returns to Busselton, Dunsborough, Yallingup and the broader South West.
Some of the events include Ironman WA, CinefestOz (a five-day film festival), Oz Rock Busselton,
Southbound (a three-day arts, music and camping festival), the Quit Forest Rally and the Red Bull
Wings for Life.
Yallingup Beach is regarded as one of
WA’s premier surfing beaches and
was the setting for the Australian
Junior Surfing Titles in December
2014.
Employment by industry
School education
Cafes, restaurants and takeaway food services
Accommodation
Building completion services
Residential building construction
5.7%
5.2%
4.6%
3.3%
3.0%
Source: ABS
In the interests of preserving this
idyllic coastal lifestyle, the State
Government is spending spending $43 million along the Port Geographe coast. Works include
recreation space with a lagoon, sheltered picnic areas, meeting places, pathways and water
purifying treatments to protect marine life.
Margaret River Wine Region has nearly 5,500ha under vine and over 215 wineries producing over
20% of Australia’s premium wine market.
Sandalford Wines, the region’s oldest vinyard established in 1840, regularly holds concerts. John
Farnham and Lionel Richie were headline acts in March 2014 with Cliff Richard, Cold Chisel, Duran
Duran and Stevie Wonder all playing at Sandalford in the last 2-3 years.
Tourists also visit caves, lighthouses and the giants of the WA Forests – the karri trees.
The Busselton lifestyle is an attractive drawcard for fly-in-fly-out workers and is the state's biggest
source of Pilbara FIFO workers outside Perth.
Mining giant Rio Tinto has pledged to give $185,000 a year to the City of Busselton to fund FIFO
support programs for three years. It estimates there are about 500 FIFO workers living in Busselton.
But despite all the tourist activity, the biggest contributors to Busselton’s Gross Regional Product in
FY2014 were construction (18.9%) and agriculture, forestry & fishing (8.7%).
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The Busselton District Hospital has just undergone a $120 million upgrade which officially opened in
March 2015. The improved facility now offers
84 beds, 15 emergency department spaces,
RESIDENTIAL BUILDING APPROVALS
two operating theatres and a dental clinic.
Over $100 million has been spent on building
every year for the 10 years to 2012, peaking at
$255 million in FY2008. Significant amounts
continued to be spent in the following years:
FY2009 - $184 million; FY2010 - $224 million;
FY2011 - $196 million and FY2012 - $162 million.
Year No of residential
approvals
2013
590
2014
691
Source: City of Busselton
Value
(million)
$193
$232
Busselton is serviced by 11 primary schools, five high schools, and there is school at Dunsborough
Lakes under construction. The nearest TAFE is located at Bunbury, 52km north of Busselton. A new
TAFE is planned for the suburb of Vasse, about 10km from Busselton.
Busselton has numerous small retailers and boutiques rather than large shopping malls. Exceptions
include Busselton Central Shopping Centre and the Woolworths, Target and Bunnings complexes.
Property Profile
Busselton was the best-performing property market in regional
Western Australia in 2014 and again in the March Quarter 2015,
according to REIWA.
But the sales activity tapered off in the remainder of 2015 with the
number of annual sales falling from 691 in May 2015 to 513 in May
2016, according to Australian Property Monitors.
Home ownership
32% own their homes
32% pay a mortgage
32% rent their homes.
Source: ABS
According to local real estate agents, the rental market has also slowed due to an oversupply of
new stock. Median rents for houses range from $370 in Busselton to $450 in Dunsborough.
Throughout 2014, median house prices in most suburbs across the Busselton region enjoyed strong
growth with many hitting double-digits. But in the last 12 months, gains have moderated, delivering
erratic gains or negative growth. Only Busselton and Quindalup showed promise with 11% and 9%
rises respectively.
The long-term average (the average annual rise in median house prices in the past 10 years) is
around 2-3% per year for many suburbs.
The most popular areas in the City of Busselton are Dunsborough with 124 house sales and West
Busselton with 109 house sales in the past 12 months.
With five of the nine suburbs listed on the following page having a median house price of less than
$460,000, affordability remains reasonably attractive.
The suburbs of Broadwater and Busselton have unit markets, but the number of sales is small.
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Vacancy rates in the Busselton area are low and have generally been below 3% since 2010.
Vacancy rates
Postcode
Suburbs
6280
Abbey, Broadwater, Busselton, Geographe, Vasse,
West Busselton, Yalyalup
6281
Dunsborough, Quindalup
Source: sqmresearch.com.au
Vacancy rate
2.8 %
2.2 %
The Busselton property market can be summarised as follows:
Suburb
Abbey
Broadwater
Busselton
Dunsborough
Geographe
Quindalup
Vasse
West Busselton
Yalyalup
No. of sales
21
54
38
124
73
20
33
109
41
Median price
$530,000
$456,000
$530,000
$630,000
$432,000
$733,000
$440,000
$442,000
$440,000
1yr growth
snr
-4 %
11 %
1%
-6 %
9%
-2 %
-1 %
0%
Growth ave.
0%
2%
3%
1%
1%
1%
-1 %
2%
-2 %
Median yield
4.3 %
4.6 %
4.1 %
4.1 %
4.7 %
3.4 %
5.2 %
4.6 %
5.0 %
Source: Australian Property Monitors. “No. of sales” is the number of house sales in the past 12 months; “10yr ave.” is
the average annual rise in median house prices in the past 10 years. “Snr”: Statistically not reliable
Future Prospects
The City of Busselton has several projects under way, including the Busselton Regional Airport
expansion, the Busselton Foreshore Redevelopment, the Community Resource Centre and the
Dunsborough Foreshore Enhancement project.
Other projects in the pipeline include the West Street development (bulky good retail); the
Chapman Hill Road auto hub; the Airport North Industrial Estate; and the Dunsborough Lakes
residential-commercial project.
The airport serves as a major tourism and economic driver, particularly with FIFO links outside the
region, interstate and overseas tourism and the opportunities as a freight hub.
The South West Blueprint launched in July 2015 suggests the City of Busselton is set to reach
120,000 people by 2050. This is supported in the State of Regional Australia 2015 report by the
Department of Infrastructure and Regional Development which ranked Busselton as the eighth
fastest growing regional city.
The City of Busselton is planning to accommodate this population growth in the new suburbs of
Provence, Vasse Newtown and Dunsborough Lakes.
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In other reports, Kmart and Aldi have approval to open stores in Busselton in the near future while
there is also talk of a new rail network connecting Bunbury to Busselton. At present, the Perth
metro rail service terminates at Mandurah, though there is a limited long distance train service
from the Perth CBD to Australind, around 50km north-east of Busselton.
Airport expansion
Tourism in the South West is likely to benefit from $60 million that has been allocated to another
airport expansion. Royalties for Regions Growing Our South Fund will chip in $46 million, the
Department of Transport $10 million, City of Busselton $3.5 million and the South West
Development Commission $300,000.
The State Government will buy land to accommodate the lengthening and widening of the runway.
Construction is expected to begin in early 2017 and be completed in mid-2018, allowing interstate
visitors to fly directly to WA's South West region rather than travel via Perth.
This is in addition to the current $85 million upgrade.
Port Geographe development
The Port Geographe canal and beachside development is finally progressing as clean-up work
begins.
The project had encountered difficulties when the previous developer went into liquidation in 2012.
Environment and coastal management issues followed, prompting the State Government to carry
out a $28 million program to rehabilitate the region.
The new owner – Aigle Royal Developments – is expected to subdivide the land into 120 canal lots
and 530 residential lots over 10 years. (More details can be found in the tables at the end of this
report.)
Cruise Ships
The first cruise ship to visit Busselton, the Diamond Princess carrying 2,560 passengers, arrived in
November 2014. On that occasion, 750 passengers contributed $300,000 to the local economy.
Building on the cruise ship industry, the Federal Government and the local council have erected a
$1.2 million landing platform on the Busselton Jetty. This will aid the temporary berthing of cruise
ship tender vessels, permitting six extra ships to visit in 2015-16. Princess Cruises has nine visits
scheduled to Busselton between 2014 and 2017 while the Queen Mary 2 – one of the world’s top
cruising vessels – will also visit in early 2017.
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Vasse Newtown
Vasse Newtown will have 1,800 lots in three residential estates, a village centre, education facilities
and a light industrial business park. Set to become home to 5,000 residents, Vasse Newtown has
been identified by the State Government as the preferred location for the proposed Busselton
TAFE, subject to final site assessment and approvals. Other facilities will include a supermarket,
medical facilities, cafes and specialty stores.
Resources
In September 2015, CalEnergy Resources began carrying out tests at the Whicher Range Gas
Project, a gas field first discovered in 1968. The complexities associated with unlocking this gas
reserve have frustrated gas companies since its discovery, prompting CalEnergy to avoid fracking
and adopt a different approach to exploration. If the project can be proven financially viable,
there’s potentially enough gas to supply WA for 10 years.
Major projects impacting Busselton include these:
RESOURCES AND ENERGY
Project
Whicher Range
gas project
CalEnergy
Resources Group
Yoongarillup
mineral sands
project
Value
TBA
Status
Proposed.
Tests carried out in
late 2015.
Impact
Potentially enough gas to
supply WA for 10 years.
TBA
Approved.
Construction will take
four months; the
mine life is three
years.
Jobs:
25-32.
Status
Proposed.
Impact
Doral Mineral
Sands
RESIDENTIAL DEVELOPMENTS
Project
Ambergate North
residential
development
New Port
Geographe Project
Aigle Royal Devts
Value
TBA
2,000 homes.
TBA
Proposed.
650 residential lots on If approved, Stage 1
59ha over 10 years.
would commence in
late 2016 and deliver
70 lots.
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INFRASTRUCTURE – GENERAL
Project
Civic & Admin
Building
City of Busselton
Facilities, Port
Geographe coast
State Government
New clubhouse Busselton Surf Life
Saving Club
Value
$20 million
A civic administration
building.
Status
Impact
Under construction.
Due for completion in
early 2017.
$43 million
Proposed.
Recreation space with
lagoon, picnic areas,
meeting places, pathways, water purifying
treatments to protect
marine life.
$3 million
Approved.
INFRASTRUCTURE – TRANSPORT
Project
Busselton
Regional Airport
upgrade (1)
Busselton
Regional Airport
upgrade (2)
Vasse Bypass,
Bussell Highway
upgrade
State Government
Busselton to
Margaret River
road upgrades
State Government
Value
$85 million
Upgrade to allow
runway to accept
larger aircraft; new
passenger terminal; to
be carried out in stages
until 2031.
$60 million
The runway will be
lengthened and
widened.
$13 million
$4 million
Status
Under construction.
The new terminal
building opened in
May 2015.
Proposed.
Construction is
expected to begin in
early 2017 and be
finished in 2018.
Completed.
Opened in January
2016.
Approved.
Upgrades announced
in December 2015.
Impact
This will allow the expansion
of the Vasse Newtown town
site.
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COMMERCIAL DEVELOPMENTS
Project
Busselton
Foreshore master
plan
Microbrewery
development,
Busselton
Busselton Central
Shopping Centre
expansion
Value
$70 million
A four-star hotel,
apartments, offices,
retail, sports and
conference facilities.
TBA
A new restaurant,
micro-brewery,
function centre and
cellar door venue on
Busselton’s foreshore.
$30 million
Includes Aldi, Kmart,
new specialty shops,
and a dining precinct.
Status
Under construction.
Impact
Approved.
Approved by the
Council in October
2014. Demolition
work began in July
2015.
Approved.
Work is expected to
begin in October
2016 and take 12
months to finish.
INFRASTRUCTURE – EDUCATION
Project
New primary
school,
Cornerstone
Christian College,
Dunsborough
South West
Institute of
Technology,
Busselton campus
Value
TBA
Could have 1,200
students by 2019.
Status
Completed.
TBA
($4 million will cover
stage 1 - classrooms,
administration
building, student
services and a trade
workshop.)
Proposed.
A site needs to be
acquired. The project
may take 5-10 years
to complete.
Impact