Overview
Glenvale
Location Report1
Overview
Location Report1
Overview
Location
Toowoomba is 130km west of Brisbane on the Great Dividing Range. It sits at the junction of the Warrego, New England and Gore Highways. The capital of the Darling Downs, Toowoomba was voted the fourth most family-friendly city in Australia, and is considered the gateway to the Darling Downs agriculture region and the Surat Basin mining precinct
Population & Demographics
Toowoomba has a population of approximately 162,000 making it the largest inland city in Queensland. The population is projected to grow to 195,000 by 2031 as a result of the changing demographics: a younger buyer and rental group is emerging as the age structure in Toowoomba is polarized. The median age in Toowoomba is 37 and working age habitants make up 53% of the population.
The Queensland Government Statistician’s Office expect the Toowoomba West SLA to be Toowoomba’s fastest growing region. Its population currently sits at 11,700 people and is projected to reach just over 33,000 residents by 2036. This translates into a requirement for an additional 7,500 dwellings during the timeframe
Date / 08/04/2016Current Population / 161,970
Projected population 2031 / 195,000
Median Age / 37
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The Property Economics
Toowoomba plays a vital role in supporting surrounding regional economies via its provision of education, health, construction and business services. The Toowoomba region led the state in business confidence, general business conditions, sales and revenue, employment levels and capital spending. The Queensland Chamber of Commerce reported that Toowoomba is, as the state’s number one agricultural region, the backbone of the Queensland economy. One of the tightest labour markets in the state, Toowoomba’s unemployment rate stands at 5.1%, significantly lower than Queensland’s unemployment rate of 6.3%.
The main industries for employment in Toowoomba are Health Care and Social Assistance (13.9%), Retail Trade (11.4%), Education and Training (10.4%), Manufacturing (9.0%) and Construction (8.0%). The bulk of the workforce is made up of Professionals (18.4%), Technicians and Trades Workers (15.5%), Clerical and Administrative Workers (14.4%) and Labourers (12.7%).
The completion of the $30 billion Australia Pacific LNG Project in April 2015, which involves the extraction of CSG in the Surat Basis, is expected to sustain 1,000 ongoing jobs over its 30-year lifespan. Similarly, the $15 billion Queensland Curtis LGN Project, completed in December 2014, has created a further 1,000 permanent positions and have an operating life of 20 years.
The Toowoomba Range road works, valued at $80.5 million, were recently completed. The project involved flood reconstruction works and has made the range accessible under extreme weather conditions to all 28,000 vehicles that use the highway daily. Additionally, the $20 million Gore Highway upgrades from Toowoomba to Millmerran to repair flood damage and reduce future flood impacts were also recently completed.
Tourism is a significant contributor to the economy, with events such as the Carnival of Flowers, Hampton High Country Food, the Arts Festival, the Australian Heritage festival and the Australian Camp Oven Festival drawing in over 1.6 million visitors to the region.
Toowoomba has a reputation for quality schools and colleges and houses both TAFE and university campuses. The brand new $35 million Highfields State High School was opened in January 2015.
The opening of additional medical and dental facilities has improved the accessibility of medical services in the region. The expansion of the oncology and mental health wards and day patient services at St Andrew’s Hospital will also minimize the need for regional patients to commute to Brisbane hospitals for treatment.
Both the $25 million Northpoint Shopping Centre and $20 million Drayton Shopping Centre have recently been completed. There has also been an additional $147.5 million of smaller projects completed in the last 12 months.
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Property Overview
Toowoomba is the highest performing market in the state with 95% of houses sold, and 92% of unit sales making a profit according to REIQ figures. Around one-third of residents are renters, and the strong demand for property is evidenced by average days on the market, with houses selling in under 2 months, and units selling in under 3 months. With the exception of 2012, when some some suburbs saw a minor decline in the price of houses and units, the city’s property market has delivered growth each year for the past decade.
Real estate confidence has grown, with asking sales prices for houses increasing 3.9% over the past 3 years, and asking sales price for units growing a massive 15.5% over the same period. Correspondingly, asking rents for houses have risen 3.1% and asking rents for units have jumped to 12.8% since 2013. Median rents in the area have been rising, leading to a gross rental implied yields exceeding 5% for both houses and units.
From 2010-2014, rental vacancies in Toowoomba remained consistently below 2%, indicating an undersupplied market. More recently, this figure has climbed towards 3%, suggesting a rental equilibrium has been achieved. However, population growth over the next 20 years will likely outpace the supply of available rental properties, which would again lead to lower vacancy rates and higher asking rents.
Vacancy Rates / 02.50%Location Report1
Property Overview
Property Statistics (Houses)
Median House Value / $387,000.00Capitalized Annual Yield – Houses / 05.10%
% p.a. Growth Median Value – Houses / 07.00%
Median Weekly Rent – Houses / $380.00
Average Days Market– Houses / 64
Sales Volume – Houses / 104
Property Statistics (Units)
Median Unit Value / $319,000.00Capitalized Annual Yield – Units / 04.90%
% p.a. Growth Median Value – Units / 01.70%
Median Weekly Rent – Units / $300.00
Average Days Market– Units / 70
Sales Volume – Units: / 27
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The Future
Toowoomba enjoys one of the country’s most diverse economic bases, boasting opportunities in agriculture, mining, logistics, manufacturing and education. The Regional Australia Institute predicted that the city’s economy will more than double by 2030, growing by at least $10 billion. Toowoomba is cleverly exploiting its agricultural advantage. Investment is flooding to the region to fund infrastructure projects, which will facilitate the storage and (domestic and international) transport of agricultural exports, undoubtedly enhancing productivity and economic growth.
The 1,700km Melbourne-to-Brisbane Inland Rail Project is expected to deliver economic benefits of around $22.5 billion to the Toowoomba LGA, improving the capacity and reliability of one of the country’s fastest growing freight corridors. Construction is yet to begin, but the costs of this mammoth infrastructure project are estimated at $10 billion, $3 billion of which has already been committed by the Federal Government. The 10-year development will create 16,000 direct jobs, and provide for a further 600 regular jobs once operational. Part of the project will also involve the construction of a 2km-long tunnel through the Toowoomba Range, significantly reducing travel time between Toowoomba and Brisbane.
Further improving the safety and efficiency of roads in the region is the Toowoomba Second Range Crossing (TSRC), which began construction late in 2015. By its mid-2018 completion, this $1.6 billion project will include a new 42km road built to bypass the city, improved access to the Warrego Highway, as well as the diversion of heavy commercial vehicles from the existing range crossing and a 40-minute reduction in travel time across the range. Over the 30 years to 2048, Toowoomba is expected to receive an impressive $2.4 billion in economic and productivity gains, derived from improved freight efficiencies and increased connectivity.
Conveniently located at the intersection of 3 major highways (the Warrego, New England and Cunningham), the 2,000 hectare Toowoomba Enterprise Hub is home to the Brisbane West Wellcamp Airport and Wellcamp Business Park, InterLinkSQ and Witmack Industry Park. The $200 million airport, a mere 17km west of Toowoomba, allows for regular passenger services, charter flights, and airfreight services. Able to cater for jets up to 747 size, the airport is opening up new export opportunities for the region, and is expected to have contributed around $225 million to gross regional product by 2020.
The associated Wellcamp Business Park offers facilities to cater for aviation, transport, corporate and mining services, while the Witmack Industry Park and InterLinkSQ provide logistics and industrial warehouse solutions, capable of storing regional produce and materials for infrastructure projects. Once all sectors are fully operational, the Toowoomba Enterprise Hub is expected to provide employment for 12,000-15,000 people.
Natural resources abound in the Darling Downs. Approval has been granted for the construction of a 5,000 hectare, $1 billion solar farm in Bulli Creek, which will have the capacity to produce an incredible 25% of Australia’s renewable energy target. A further $1 billion has been invested in the 467km Arrow Surat Pipeline, which will bring Coal Seam Gas from the Surat Basin to a proposed LNG plant in Gladstone.
Toowoomba’s economy will benefit from its proximity to the Surat Basin. Covering 270,000km², the basin has the potential to sustain 25-30 mines, and is tipped to become Australia’s largest energy province. A $900 million expansion of the Acland Coal Mine has been given the green light, which will extend the life of the mine to 2030. The expansion will begin later in 2016, and create 250 construction jobs, with an additional 435 jobs during operation – doubling the current workforce. It is expected that the mine will inject at least $530 million into the Southeast Queensland economy each year.
Grand Central shopping precinct is engaged in a $500 million re-development, with completion expected in early 2017. The project will transform the center into the region’s “unrivaled retail, entertainment and lifestyle destination” and will create 1,500 jobs during construction and 1,000 ongoing retail jobs. At present, an estimated $886 million of retail spend by Toowoomba residents is lost to Brisbane, the Sunshine Coast and the Gold Coast. The Grand Central re-development is expected to recapture much of this leaked market share, benefitting the Toowoomba LGA by around $1.2 billion.
In December 2014, the State and Local Governments declared the Toowoomba Railway Parklands a Priority Development Area (PDA). This PDA will create a 50 hectare new ‘urban village’ at the parklands surrounding the operational rail yard site at Gowrie Creek. Development proposals incorporate commercial, industrial, residential and retail space, as well as restaurants, public areas and pedestrian connections. This investment will provide community infrastructure, generate employment and business opportunities, and accommodate a range of new housing types.
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Infrastructure
Toowoomba Second Range Crossing (Toowoomba Bypass project)
Project DescriptionThe bypass will improve access to the Warrego Highway and cutting travel time across the range by 40 minutes, improve the inland transport route and form a key link in the AusLink National Network facilitating more efficient connections between Melbourne, Brisbane and Darwin. / Impact
The project will create 1,800 jobs and will help increase economic activity in the region by $2.4 billion over 30 years. At its completion the bypass will divert almost 80% of heavy and super heavy commercial vehicles away from the existing range crossing and reduce travel times.
Value / $1.6 billion
Status / Approved
Status Description / The contract was awarded to Nexus in July 2015 and construction is expected to begin in early 2016. Completion date is projected to be late 2018.
Bulli Creek Solar Farm
Project DescriptionOnce completed, the Bulli Creek solar farm will be capable of producing an immense 2,000mW – enough to power 550,000 homes. The solar farm will have a 35-year operating limit from when it begins. / Impact
The 5000 ha site will be the largest Solar Farm in Australia. It will produce 25% of Australia's renewable energy target.
Value / $1 billion
Status / Approved
Status Description / Approved February 2015. Construction expected to begin 2016. Project developers aim to complete the entire farm in eight to ten years.
Melbourne-to-Brisbane Inland Rail Link
Project DescriptionThe project will create over 1,700 kilometres rail track corridor connecting Melbourne and Brisbane through inland eastern Australia / Impact
The 10 year construction period will create over 16,000 direct jobs, with a further 600 jobs expected per year on an on-going basis. It will provide over $20 billion of economic benefit.
Value / $10 billion
Status / Approved
Status Description / The Australia Government committed an initial $300 million to the project in 2014.The Federal Government released the delivery plan in September 2015 and the project will receive funding in the 2016 budget.
Arrow Surat Pipeline
Project DescriptionInvolves extraction of CSG gas in the Surat and Bowen Basins, a pipeline to Gladstone and an LNG processing plant at Gladstone. / Impact
The project is planning a 467km pipeline to bring CSG from the Surat Basin, near Dalby, to a proposed LNG plant in Gladstone.
Value / $1 billion
Status / Under Construction
Status Description / Environmental authority granted in Jan 2010. Undergoing construction in 2015.
Re-development, Grand Central shopping precinct
Project DescriptionThe expansion will add new discount department stores, new supermarkets, and 160 specialty retailers. / Impact
The project is expected to create 1,500 jobs in construction and 1,000 ongoing retail jobs. The development will transform the centre into the Toowoomba region's "unrivalled retail, entertainment and lifestyle destination".
Value / $500 million
Status / Under Construction
Status Description / Completion expected early 2017.
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Conclusion
/ BuyRisk Total Explained
/ Buy/ Hold
/ Caution
Property Research Committee
Superannuation Property’s property research committee is comprised of some of the Industries’ leading property economist and specialists. Our team offers due diligence solutions to industry specialists, property developers, property firms, superannuation funds and private clients.
Superannuation Property research derives the latest research from a myriad of sources including Hotspotting, Various Real Estate Institutes, Australian Property Monitors, Property Council Of Australia, Australian Bureau of Statistics, Reserve Bank of Australia, Real Estate.com, Domain, Urban Development Institute Of Australia, Local Authorities & Councils, Price Finder, RP Data, Infrastructure Plans, State Governments, and Industry Bodies & Publications.
Dylan Crowe Managing Director
Dylan’s range of capabilities extends from financial planning and finance, to property and sustainable development. Formal qualifications include: Bachelor of Property and Sustainable Development, Diploma of Financial Services, Financial Planning, Diploma of Property and LREA.
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