The Brisbane Inner City Investment Prospectus

Second half 2013

Invest in Newstead-Bowen Hills

Welcome

Newstead-Bowen Hills statistical area level 2 (SA2) has been identified as a key investment location within Brisbane Inner City. This supplement provides a snapshot of key economic and investment indicators for Newstead-Bowen Hills and has been produced as part of the Brisbane Inner City Investment Prospectus.

Newstead is a riverside suburb known for its trendy cafes and restaurants, upmarket studio apartments and renovated older homes. Newstead predominantly remains a commercial area, previously accommodating industrial timber yards, wharves, woolstores and the Newstead gasworks, however, key areas have now been redeveloped into upmarket residential locations.

In contrast, Bowen Hills is known for its recreational facilities, being home to the Brisbane Exhibition Grounds, The Twelfth Night Theatre and The Old Museum, which was the former Queensland Museum and now houses the Queensland Youth Orchestras.

Public transport in Bowen Hills is well established and includes Bowen Hills train station, one of Queensland’s busiest railway stations. The station is also home to a large Queensland Rail maintenance and stabling depot. Important road infrastructure including the Clem Jones tunnel, Airport Link tunnel and Inner City Bypass also interconnect here.

In recent years Bowen Hills has become a key location for business headquarters. Virgin Australia Holdings and Sunstate Airlines operating under the Qantaslink banner have their headquarters here. It is also home to News Corporation’s Queensland head office, which publishes The Courier-Mail, The Sunday Mail, mX, Brisbane News and Quest community newspapers. There are 1857 registered businesses in Newstead-Bowen Hills according to data from the Australian Bureau of Statistics (ABS).

The local population of Newstead-Bowen Hills can be characterised as well-educated, high-income earners, mainly consisting of families with no children that reside in apartments.

Future growth and development is evident in a significant number of residential and non-residential development and building approvals being granted for the area.

Location

Newstead-Bowen Hills has a neighbourhood plan specifically for the Newstead and Teneriffe waterfront, as well as the Bowen Hills Local Plan. The Newstead and Teneriffe Waterfront Neighbourhood Plan came into effect on 1 January 2011 and is now a legal document and forms part of the Brisbane City Plan 2000. Neighbourhood plans can help facilitate economic prosperity, protect character development, provide for open space, include standards for new development and reflect improved infrastructure such as new transport routes. The Newstead and Teneriffe Waterfront Neighbourhood Plan sets out how land can be used and developed over time and seeks to:

• concentrate new medium-high density residential and commercial development in the Riverpark site and the adjoining Commercial Road precinct

• maintain the existing character of recently redeveloped areas in the southern part of the plan area (including the converted woolstores and the former sugar refinery site)

• ensure that new development near the converted woolstores includes design elements that complement the character of the converted woolstores

• preserve an employment base (including light industry and service activities) in the northern part of the plan area

• improve public areas through the creation of cross block links and the continuation of RiverWalk.

The Bowen Hills Local Plan outlines its key objectives as seeking to:

• create a diverse and vibrant area with an integrated mix of living, employment and entertainment uses

• capitalise on the excellent public transport infrastructure in the area

• protect heritage buildings and encourage their ongoing use

• attract businesses that support city centre uses or are associated with the adjacent hospital complex.

A number of key precincts can be identified in Newstead-Bowen Hills including the Ekka precinct, Bowen Hills heart precinct, RBH precinct, Perry Park precinct and the Newstead River Park precinct.

The Ekka precinct is currently undergoing a significant transformation. The precinct encompasses the RNA Showgrounds, the former Queensland Museum, parkland and entertainment and dining venues.

Bowen Hills heart precinct is the area containing the Bowen Hills train station. This area is known for high-intensity development and is transforming into a vibrant centre.

The RBH precinct is the area located opposite the Royal Brisbane and Women’s Hospital. The area is a mix of residential and commercial uses delivering a range of hospital support activities.

Perry Park precinct provides a major sport, recreation and green space area in Bowen Hills and includes the recently expanded PCYC facilities.

The Newstead River Park precinct includes commercial, retail, residential apartments and parklands and is situated riverside.

Population and growth projections

Newstead-Bowen Hills will see significant population growth over the next 20 years. The population in 2011 was 8218 people and is forecast to increase to 22,238 by 2031 (see Figure 1).

The median age for residents of Newstead-Bowen Hills in 2011 was 33.2 years, below the Greater Brisbane (greater capital city statistical area) median age of 35.1 years. The age profile of Newstead-Bowen Hills is illustrated in Figure 2.

The population of Newstead-Bowen Hills is characterised as mainly couple families with no children (see Figure 3) and more than 85% reside in apartments. Almost 60% of occupied private dwellings recorded on Census night in 2011 are rented, which is significantly higher than the proportion across Greater Brisbane.

Residents of Newstead-Bowen Hills are well-educated, with 75% of the population aged 15 years and over holding post-school qualifications, more than half of which hold a bachelor degree or higher.

2107 residents (28.9%) of Newstead-Bowen Hills indicated in the 2011 Census they were born overseas. More than 60% of residents that were born overseas indicated they spoke English only, slightly higher than across Greater Brisbane.

The residents of Newstead-Bowen Hills are employed across a wide variety of occupations. The top-three occupations identified in the 2011 Census were professionals, managers and clerical and administrative workers. The occupation profile of Newstead-Bowen Hills is illustrated in Figure 4.

Business information

In 2011, 1857 businesses were registered in Newstead-Bowen Hills. When classified by employment size, 119 were medium businesses. In comparison to the average across Greater Brisbane the area has a slightly higher concentration of medium businesses based on employment size.

The business count for Newstead-Bowen Hills by turnover range indicates 18% of the businesses in the area have a turnover greater than $500,000 and less than $2 million, compared with 13% for Greater Brisbane. Eleven per cent of businesses have a turnover of $2 million or more, in comparison to almost 6% for Greater Brisbane. The business counts for Newstead-Bowen Hills by employment size and turnover range are illustrated in Figure 5 and Figure 6.

The top-ten industries by business count for employing businesses in Newstead- Bowen Hills are illustrated below (see Figure 7).

Employment forecasts

Employment in Newstead-Bowen Hills in 2011 was 15,660 and is forecast to reach 29,498 people by 2031, a growth of 13,838 people (88.4%) from 2011.

The top-five employing industries in Newstead-Bowen Hills (see Figure 8) will contribute the majority of employment growth for the area. Significant employment growth is also evident in the cultural and recreational, and wholesale industries.

Availability of skilled workers is important for the area. Workers in Newstead-Bowen Hills commute from various locations. The top-three locations that workers commute from are New Farm, Hills District and Clayfield. The journey to work profile for Newstead-Bowen Hills is illustrated in Figure 9.

Building and development activity

In the 12 months ending 30 June 2013, new residential buildings approved in Newstead-Bowen Hills had a total value of $59.5 million.

The total value of non-residential building approvals in Newstead-Bowen Hills in the 12 months ending 30 June 2013 was $95.1 million.

The $2.9 billion RNA Showgrounds Regeneration Project will be home to more than 3000 residents and 12,000 workers upon completion. The first stage, The Green, is under construction. The residential development consists of five low-rise buildings.

Construction has also commenced on Madison Heights, a 30-storey residential development that will include 308 apartments and high-street styled retail on the lower levels.

The Seymour Group has approval for a 22-storey office tower development on Abbotsford Road, adjacent to Bowen Hills train station. The development will add A-grade office stock to the market, with plans for groundfloor retail and an optional floor designated as retail, indoor sport or office space located above the lobby.

The Gasworks development in Newstead is progressing with Gasometer 1, set to open in mid-2013 offering 8000 square metres of retail space and 9100 square metres of A-grade office space over four storeys. Construction has commenced on the next stage, Gasometer 2, which is a 13-storey commercial building with 23,400 square metres of A-grade office space and is anticipated to be complete by mid-2014. Bank of Queensland has leased more than half of the available office space for their new headquarters.

Newstead has also seen the recent development of The Waterfront residential apartments and there are a number of boutique residential developments underway.

Growth in floor area

Available floor space in Newstead-Bowen Hills in 2011 was estimated to be more than 900,000 square metres and is expected to increase by approximately 700,000 square metres by 2031 (see Table 1).

Table 1 - Floor space forecasts Newstead-Bowen Hills, 2011-2031

Newstead - Bowen Hills / 2011 Floor space estimate (m2) / 2016 Floor space forecast (m2) / 2021 Floor space forecast (m2) / 2026 Floor space forecast (m2) / 2031 Floor space forecast (m2)
Retail / 237,046 / 340,229 / 358,944 / 378,172 / 378,814
Commercial / 100,520 / 137,674 / 147,047 / 153,924 / 155,249
Industrial / 389,170 / 455,520 / 518,725 / 547,481 / 531,620
Community purpose / 189,041 / 368,457 / 433,778 / 507,386 / 558,793
Other / 4,733 / 5,292 / 4,928 / 4,772 / 4,397
Total / 920,510 / 1,307,172 / 1,463,422 / 1,591,735 / 1,628,873

Source: Derived from Queensland Government, Department of Transport and Main Roads Employment Projections converted to floor space by Brisbane City Council.

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Published by Brisbane City Council, GPO Box 1434, Brisbane QLD 4001

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