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Queensland Economic Outlook ‘Positive’: Deloitte

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Queensland Economic Outlook ‘Positive’ Deloitte

 

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.

Originally Published: www.theurbandeveloper.com

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Commercial

Walker Corp Offloads Proposed Ann Street Tower

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Walker Corp Offloads Proposed Ann Street Tower

Property fund manager EG has acquired a site in Brisbane’s Fortitude Valley, just 1km north of its CBD, for $27.72 million on a tight 4.7 per cent net yield.

The 3,582sq m site has development approval for two separate schemes — one residential, one commercial — with Lang Walker’s Walker Corporation scrapping the apartment scheme after the market turned in 2017.

Walker Corporation acquired the whole-block island site in 2015 for $22.2 million.

The developer later won approval for a 26-storey A-grade office tower comprising 44,000sq m of net lettable area and ground floor retail. Cox Architecture designed the scheme.

The $400 million green star-rated office tower would eventually house up to 5,000 workers, Walker Corporation said.

Walker Corp Offload Proposed Ann Street Tower

Located close to trendy James Street, EG’s latest asset joins a swathe of office development in the area including Consolidated Properties’ $250 million office scheme at 895 Ann Street and Pellegrino Group’s commercial building at 89 McLachlan Street.

The 801 Ann Street site is the eighth asset to join EG’s Yield Plus Infrastructure No. 2 fund, which has a $750 million real estate mandate.

EG has more than $2.4 billion worth of assets under management.

Walker Corp Offloads Proposed Ann Street Tower.

In 2018, the Sydney-based fund manager picked up a 17-storey Brisbane office tower from Peter Harburg’s portfolio and offloaded Fortitude Valley’s Optus Centre site for $23.5 million.

The site, which had approval for a controversial apartment scheme, was acquired by Scott Hutchinson of Hutchinson Builders for the 3,300-person capacity Fortitude Valley Music Hall.

A spokesperson for EG Funds said that the site had been initially acquired as a yield producing asset. The Volvo showroom and car service centre lease expires in 2024.

The transaction was brokered off-market by JLL’s Seb Turnbull.

 

Source: theurbandeveloper.com

 

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PortGate Logistics signs on for 30 years in Brisbane

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PortGate Logistics signs on for 30 years in Brisbane (1)

Transport and logistics operator, PortGate Logistics, will relocate to a new three hectare site as part of the Fisherman Islands development at the Port of Brisbane.

A sub-tenant of Portgate Properties, PortGate Logistics has committed to a 30-year lease deal that will include purpose-built facilities comprising a 6000 square metre warehouse, container hardstand, office building and car parking.

Additional areas will be developed for log storage and pack-unpack facilities.

Portgate Properties Pty Ltd currently sub-lease several warehouses and hardstand areas within the Port of Brisbane PortGate precinct where it has maintained a presence since 2006.

Brothers Steve and Terry Tzaneros have run container parks on Fisherman Islands since the early 1990s.

Port of Brisbane CEO, Roy Cummins, said the lease not only reaffirmed PBPL’s long-standing partnership with PortGate Logistics, but the new location would enable PortGate Logistics to deliver great benefits to its customers.

“We were very pleased to be able to work closely with PortGate Logistics to identify an opportunity for them to relocate ‘on Island’, which will also allow their customers more convenient access to the container terminals,” he said.

“This is another demonstration of the Port of Brisbane’s ability to work with our existing customers to support their relocation or expansion requirements, and provide long-term certainty for all parties,” said Cummins.

“The Port of Brisbane’s property revolution continues to go from strength to strength.”

In a joint statement, Arthur and John Tzaneros said, “For PortGate Logistics to continue growing it needed to move on their own designated site, Office, Warehouse, Full Container Park & Reefer Area, Large Fumigation areas for Containers, Break Bulk Area, the Facility will also be licenced as a Bond & Quarantine Facility as well as being a few hundred metres from the Container Terminals.”

“This is only part of our strategy for our future and the Port of Brisbane has enabled us to make this work, we look forward in working with the Port of Brisbane and all our clients into the long future we have ahead of us.”

PortGate Logistics has engaged Space Frame to construct the facility.

Construction is expected to be completed June 2019.

 

 

Source: www.trailermag.com.au

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Savills sell two Bowen Hills, Brisbane properties to 99 Bikes

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Savills sell two Bowen Hills, Brisbane properties to 99 Bikes

National bike giant 99 Bikes has spent $5.5 million buying two adjoining properties in Brisbane’s Bowen Hills.

They’re set to consolidate two existing stores in to the one property at 62-66 Abbotsford Road.

Savills agents Gregory Woods and Daniel Pepper negotiated the deal, with 111 enquiries received throughout the campaign.

The new superstore is in replacement of the previous stores located in Fortitude Valley and Windsor, and will also house administration, logistics and warehousing needs for the business. 

Woods said the building size and location was ideal for the retailer, with the high level of exposure a major draw card. 

“We had originally taken the property next door to market, with 99 Bikes inspecting the facility, however they expressed a need for a larger space.  

“Fortunately, the seller also owned some adjoining properties which is what prompted the sale of 62-66 Abbotsford off- market,” Mr Woods said. 

The properties are situated on a total 2,028sq m site, achieving a rate of $3,309 per square meter by total building area of 1,662sq m. 

Pepper said owner occupiers continue to be attracted to Bowen Hills, due to its underlying land value and future development potential.  

“Evidenced by the significant enquiry we received throughout the campaign, we are seeing an increased interest in Bowen Hills due to the significant price disparity between neighbouring suburbs such as Newstead,” Mr Pepper said. 

Managing Director of 99 Bikes, Matt Turner, said the new store is set to open on Thursday 20 June 2019, with the online warehouse up and running from the new location now. 

“When the store opens there will be an extended range with express click and collect from the online store,” Mr Turner said. 

 

 

Source: www.propertyobserver.com.au

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