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Commercial Property

Queensland Economic Outlook ‘Positive’: Deloitte



Queensland Economic Outlook

Construction and development appeared healthy to Deloitte’s analysts, who attributed some of Queensland’s strong economic outlook to high levels of interstate migration and international tourism, which have encouraged a growing list of tourism-related construction projects.

Queensland’s international tourist arrivals are expected to remain solid over the forecast period, averaging growth of 4.7 percent out to 2021.

There were reasonable gains in engineering activity in Queensland, and Cross River Rail was in the planning stages.

The report also put a focus on livability and housing affordability. In the midst of the continuing debate over house prices and quality of living, Deloitte reported that Queensland has less cause for concern.

Queensland’s place in the national picture of housing affordability is a comparative advantage. In the midst of a housing price boom, living in Queensland remains more affordable than in the southern states.

While Sydney and Melbourne house prices have experienced year-on year growth in the double digits, Brisbane has experienced a modest 3.5 per cent growth.”

Despite this optimism, Queensland was revealed to be mirroring the national trend, showing a slight decline in outright home ownership and owners who have a mortgage.

Rental stress was recorded to be higher than the national average, with more Queenslanders renting than owning their own home compared to the rest of the country.

“But with a modest decline in rent in the June quarter CPI figures, increasing vacancy rates, and new supply from an easing residential construction boom the conditions could result in Brisbane becoming a renter’s market,” Deloitte said.

Job growth was accelerating in Queensland and while population growth had “bottomed”, it was now back in line with the national average — although it remained below the level experienced in the state five years ago.

In less positive news, CommSec’s latest State of the States report found Queensland’s economic performance had slipped to sixth place, hampered by weak business investment and retail spending.

CommSec chief economist Craig James said that despite a recent surge in residential construction, oversupply is still a concern. Queensland would benefit from increased revenue generated by the state’s gas industry as well as spending that resulted from a rise in employment.

Queensland Treasurer Curtis Pitt defended the state’s ranking saying that the CommSec report understated the state’s performance.

“Most people’s economic indicator is whether they have a job or not and both the DAE and CommSec reports highlight our strong performance in job creation,” Pitt said.

Of Queensland’s population of 4.7 million, more than half were recorded to be living outside of the state’s capital city. Queensland’s south-east corner, including Brisbane, Gold Coast, and Sunshine Coast, saw a growth rate in population twice that of the rest of the state.

Despite Queensland’s size, urbanization has taken hold — 66 percent of the population living within 0.6 percent of Queensland’s total area.

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Commercial Property

Elanor Investors Acquire Redcliffe Shopping Centre For $55 Million



Elanor Investors Group new managed fund, the Bluewater Square Syndicate, has acquired a shopping centre in the Brisbane suburb of Redcliffe for $55.25 million with a two year rental guarantee on vacancies.

Elanor chief executive Glenn Willis said there was significant opportunity to expand the shopping centre and retail options in Redcliffe, as the property has a favourable zoning and 27 metre height limit across the majority of the 1.356 hectare site.

“Following the announcement of the establishment of the Elanor Metro and Prime Regional Hotel Fund on 21 August 2017, the establishment of Bluewater Square Syndicate takes ENN’s owned and managed portfolio of assets to approximately $990 million.

“This is expected to exceed $1 billion dollars following ENN’s co-investment in each of these new managed funds.” Willis said.

Constructed in 2008, Bluewater Square is a 10,004 square metre neighbourhood shopping centre in an increasingly densifying precinct within the Brisbane metropolitan area — 20km from the Brisbane International Airport and 30km from the Brisbane CBD.

The centre is anchored by a 3,941 square metre full-line Woolworths supermarket leased to September 2028. The centre’s sales are growing at 3 per cent per annum with a weighted average lease expiry of 6.0 years.

The Woolworths supermarket is complemented by two mini majors — Healthworks Gym and a large Terry White Chemist — and over 30 specialty retailers predominantly focussed on providing services and non-discretionary focussed food offerings. An upper level of office suites is tenanted by three law firms, a medical practice and the Redcliffe Electoral Office.

The acquisition of Bluewater Square represents a passing yield of 7.0 per cent which compares favourably to prevailing Brisbane Neighbourhood shopping centre yields.

“Bluewater Square is a modern shopping centre generating stable cash flows by providing convenient access to everyday goods and services for its local trade area,” Elanor head of office real estate Michael Baliva said.

“The Bluewater Square Syndicate provides its investors with strong income returns and significant opportunities for capital growth,” he said.

Settlement of Bluewater Square is expected to occur in October 2017.

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Commercial Property

New Industrial Land Release Hits Market



First major industrial estate in Caboolture in 10 years

In what is one of the most anticipated land releases to hit the industrial market, official marketing commenced this week on Corporate Park East, located between Brisbane and the Sunshine Coast at Caboolture.  The new 76ha integrated estate is expected to help satisfy the increasing logistics requirements of companies looking to service the northern growth corridor.

“The success of North Lakes and the residential construction activity being generated by Caloundra South and other major projects in the area has changed the perception of Caboolture among the national companies” said marketing agent Chris Massie of Ray White Commercial. “It has become clear that this will be the centre of growth in the region for the next twenty years and the bigger players are starting to position themselves accordingly”

Stage 1 is due for completion in May of next year, with tenants and owner occupiers expected to move in to the first new buildings before Christmas.  Land sizes start at 2,000m2 and can accommodate up to 20 hectare requirements.

If you would like more information emailed or to arrange a site inspection, please contact Jennifer Swaine at Ray White Commercial North Coast Central or email at


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Commercial Property

MPF Acquires Brisbane Commercial Property For New Investment Fund



Perth-based fund manager Mair Property Funds (MPF) has acquired a busy neighbourhood shopping centre in Brisbane’s north as the first asset for its latest investment fund.

MPF acquired the Castle Hill Village Shopping Centre at 264 Dohles Rocks Road, Murrumba Downs 26 kilometres north of the Brisbane CBD for $14.2 million, reflecting a net initial yield of 7.7%.

The property was transacted through Joe Tynan, Dillon Murphy and Michael Hedger of the CBRE Queensland team and Peter Melling and David Ellwood from MPF.

Mr Melling said the fund manager was attracted to the property’s dynamic tenant mix, which provided a diversified income stream for investors, as well as the potential to improve income.

The property comprises three buildings accommodating 19 tenants and anchored by national tenants McDonald’s, IGA and BWS. It also includes a medical practice and a diverse range of smaller speciality stores.

The McDonald’s lease runs until 2033 and includes a series of 10-year options, while the IGA lease runs until 2024.

Overall, the property, which has a land area of 9,733 square metres and a gross lettable area of 2,773sqm, offers a WALE of 6.8 years.

“The property is in a high exposure location which has a projected population growth of 4% p.a. due to the proposed Petrie University Precinct,” Mr Tynan said.

“This precinct is being fast tracked by the Queensland government, as is the rapidly expanding North Lakes region.”

The property is the first acquisition within MPF’s latest investment trust, the MPF Retail Fund, which is projected to provide initial distributions of 7.5% to investors.

The Fund has been established to purchase retail property assets in expanding demographic areas throughout Australia.

“‘Castle Hill Village Shopping Centre is centrally positioned to benefit from the high growth in the immediate area and was a very strategic acquisition for MPF,” Mr Melling said.

The Fund has already commenced a search for a second commercial asset and will be open for further investment in early 2017.

The acquisition takes the value of properties under management by MPF above $180 million across three states as the company continues to grow its funds to meet investor appetite.



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