PACE OF BLACKBURN
Blackburn
DUE DILIGENCE REPORT February 2021 LOCATION 160 Whitehorse Road, Blackburn Vic, 3130
Disclaimer The information in this document is not investment advice. The information in this document has been published as an information service. The information contains general information and does not take into account any investor’s particular circumstances and needs. Each investor should consider whether the information is appropriate for his or her particular needs, financial situation and investment objectives. While the information provided by Blue Wealth Property is believed to be accurate, Blue Wealth Property does not accept responsibility for any inaccuracy or any actions taken upon reliance of the information in this report. No returns or performance is guaranteed. Any forecasts are dependent on the current market conditions and knowledge available at the time of producing this document. Important Notices This information is subject to change without notice. Updated information can be obtained by contacting Blue Wealth Property on (02) 9743 0077 or their authorised Business Partners.
CONTENTS
CONTENTS Pace of Blackburn
01
1.0 Pace of Blackburn
10
3.0 Blackburn
10
3.1 Population & Demographics
02
2.0 Melbourne
11
3.2 Economics & Employment
04
2.1 Population & Demographics
12
3.3 Infrastructure Spending
05
2.2 Economics & Employment
13
3.4 Supply & Demand
07
2.3 Infrastructure Spending
08
2.4 Supply & Demand
14
4.0 Floorplate
15
5.0 Renders
19
6.0 Pace Development Group
1.0 PACE OF BLACKBURN
1.0 PACE OF BLACKBURN Project Details • Located 19 kilometres from the
• Situated strategically to benefit
Number of dwellings
Melbourne CBD within
from Melbourne’s evolving east,
77 apartments
Blackburn’s well-established
Blackburn offers easy connection
Price ranges
residential market
to the CBD and surrounding
• Pace of Blackburn is a luxurious residential complex that
regions • Produced by Pace Development
includes a high-end commercial
Group, one of Melbourne's
offering. Creating an appealing
most well renowned residential
owner occupier style precinct
developers
• The project is well connected to
• An aesthetically appealing and
major employment hubs
well-designed project, produced
including Box Hill and Epworth
in collaboration with Ascui & Co
East Private Hospital
Architects
• Blackburn holds a tight rental
• Blue Wealth have secured strong
market with huge growth
pricing with sales in line with the
potential, offering strong yields
established market
and low vacancies • Current vacancy rates sit at 3.3 % refecting a balanced market
1 bedroom, 1 bathroom, 1 car space: from $390,000 2 bedroom, 2 bathroom, 1 car space: from $500,000
Size ranges 1 bedroom, 1 bathroom, 1 car space: 52sqm 2 bedroom, 1 bathroom, 1 car space: 63sqm
Estimated completion Q4, 2022
Estimated outgoings Council & Water Rates: $1,500 - $1,800 p.a approx Indicative Strata Levies: $2,400 - $3,100 p.a approx
Conditions of purchase Deposit on Exchange: 10% on exchange of contracts Deposit Type: Cash and Bank Guarantee (balance on completion)
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1.0 PACE OF BLACKBURN
Pace of Blackburn Blackburn, Victoria
2
2.0 MELBOURNE
2.0 MELBOURNE Victoria
‘Melbourne was voted the world's most liveable city for seven years running' Melbourne is Australia’s second largest city and voted the world’s most liveable city for seven consecutive years by the Economist Intelligence Unit. This comes down to a unique combination of diverse demographics, strong sports, entertainment and café culture and well-planned transport systems and infrastructure. The Melbourne property market has a rare structure, with varying growth rates on product type (houses and apartments) and location making it difficult to place the city on the property clock. Broadly speaking, Melbourne’s housing market performed strongly between 2012 and 2017 – with only Sydney recording a higher growth rate. The markets segmented nature means each region must be assessed on its individual merit. The division in the market exposes opportunities and the sub-markets best representing growth potential.
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2.0 MELBOURNE
‘By 2031 Melbourne is
2.1
projected to overtake Sydney as Australia’s most populous city’
Population & Demographics As of August 2018, ABS reported
is based on the evolution of a
that the population of Greater
population’s age structure, gender
Melbourne reached 5 million
or living arrangements. The way we
residents. Melbourne has added
live provides policy makers with the
over 120,000 new residents each
information they need to plan for
year for the past three years – the
future demands for housing, land and
highest of any Australian city.
infrastructure.
With population growth like this, Melbourne needs to add 45,000 new dwellings per year, or nearly 1,000 per week. A record 18,000 Australians migrated to Victoria in 2017, largely because of housing affordability and job creation. Melbourne has been growing faster than Sydney over the past decade, according to the Australian Bureau of Statistics (ABS), and is set to become Australia’s most populous city by 2031. To accommodate for this growth, the city will require an additional 1.6 million dwellings.
The current household size of 2.7 people and the growing proportion of lone person households suggest that the dwellings required could be provided through apartment development. As at June 30th 2018, the lone person household and coupled families without children make up 49% of Greater Melbourne’s population. This means that half of Greater Melbourne’s households are well suited to apartment living. The number of lone person households is projected to grow 59% by 2031, the fastest of the varying household
Assessing the population structure
types. Strong house price growth in
and how this may change in the
Melbourne’s metropolitan areas is
future is critical to understanding
likely to strain affordability and result
where the demand for property
in an increase in demand for more
will come from. Government policy
affordable apartment dwellings.
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2.0 MELBOURNE
2.2
Economics & Employment
Victoria
5
Gross state product
Percentage of Australian gross domestic product
$385.9 billion
23.6%
Melbourne has solidified its position
The Melbourne economy is
Over the last 5 years, Victoria
as Australia’s strongest economic
continually shifting away from the
has added more jobs than any
performer, now boasting the
manufacturing based industries into
other state. According to data
country’s highest contribution to
the less volatile professional services. from the federal government,
the GDP. According to Commsec’s
This has been the most significant
Victoria’s employment base
quarter 4, 2018 State of States
change to Melbourne's economy.
increased by 100,200 jobs in
report it also recorded 3.3% annual
The evolution has allowed for a more
the 12 months to 2018. This job
GSP growth making it the nation’s
diversified base of employment-
creation was dominated by full
top performer. A solid indicator
generating industries, which has
time employment signifying
for the strength of state economy
strengthened the resilience of the
the strength of the diversified
is the acceleration in retail trade.
city’s labour market to external
economy. In the five years between
Over the past 12 months, retail
shocks and structural adjustment
2017 to 2022, federal statistics
trade has grown by almost 5%, in
pressures.
forecast Victorian employment to
a performance outpacing all other
increase 8.8% - outpacing that of
states.
the national average.
2.0 MELBOURNE
Victoria’s gross state product grew by 3.3% over 2018, making it the country's top performer
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2.0 MELBOURNE
2.3
Infrastructure Spending Melbourne has been nominated as the world’s most liveable city seven out of the last eight years. The Victorian Government maintains that the key to upholding this status rests upon infrastructural investment as a driver. To proactively plan for future needs, while implementing innovative visions the ‘Plan Melbourne’ vison was conceived. The plan that extends its vision through to 2050, is structured to design Melbourne’s housing, commercial and industrial development for future levels of need.
Sky Rail Project This multi billion project is aimed at easing traffic congestion throughout the whole of Greater Melbourne. 75 differing level train crossings are being removed and lifted over a 5 year construction timeframe.
The plan integrates over 112 future action plans to accommodate for
Completion is expected to be finished
future population, housing and employment needs. Major growth
by 2022.
corridors in the Southwest (Wyndham-Geelong), North (Hume) and Southeast (Dandenong) will ultimately be connected as a planned
Fishermans Bend urban renewal
economic triangle. Major investments include:
The largest urban renewal project in Australia, the precinct is located
West Gate Tunnel Project Construction on the project begins in 2018 and completion is anticipated for 2022. It involves widening the West Gate Tunnel enhancing connectivity from the south west of Melbourne into the CBD. The project is expected to create 6,000 jobs. Metro Tunnel Rail Link The $10 billion project consists of two 9 kilometre train tunnels, including five underground stations from South Kensington to South Yarra. The construction will result in the employment of 3,500 people. Construction began in 2018 and is forecast to be completed by 2020. On completion the project will service an extra 35,000 commuters during peak hour.
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1 kilometre south west of the CBD. Over 250 hectares has been rezoned for residential, commercial and retail spaces in an attempt to expand the capital city zone. The area has potential to accommodate 40,000 jobs and 80,000 residents.
2.0 MELBOURNE
2.4
Supply & Demand The Melbourne property market
high-density dwellings tenanted
can be best described as segmented,
and occupied quickly. Melbourne
with discontinuity on a suburb by
had a vacancy rate of 2.2% as of
suburb basis. The result is, significant
January 2019, with 3% indicating a
variation in property market gauges
balanced market, as a result Greater
(supply, vacancy rates, time on
Melbourne is heavily undersupplied.
market, yields and the like) when a
With projected population increases
granular (suburb by suburb) approach
exceeding those of other capital
of analysis is taken.
cities, Melbourne is challenged
The strong performance in Melbourne’s housing market and strain on affordability is driving demand for townhomes and apartments. This coupled with strong population growth in Metro
with the task of ensuring long term strategies are applied that will allow supply to match demand sustainably. Projections suggest that 1.6 million dwellings are required to keep up with population forecasts to 2031.
Melbourne has seen medium and
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3.0 BLACKBURN
Blackburn, Victoria
9
3.0 BLACKBURN
3.0 BLACKBURN 3.1 Introduction Blackburn is located 19 kilometres east of the Melbourne CBD, within the local government area of the City of Whitehorse. Known for its established residential standing and attractive green streetscapes, the well connected suburb offers proximity to the rapidly evolving Box Hill employment hub while giving public transport access to the bustling Melbourne CBD. Adjacent to Blackburn are numerous markets that have undergone major growth phases over the last 5 year period including Box Hill and Mont Albert (suburbs where market appreciation has pushed median house prices well above $1.5 million).
Population & Demographics Population growth
Median age
Average household size
18%
40
2.6
The City of Whitehorse (LGA), which
Blackburn’s local demography
runs from Melbourne's affluent inner represents an affluent and east to the Ringwood outer region,
established down sizer population.
has an estimated resident population Local residents have an average of 170,093 and is expected to
age above the Victorian state
increase 21.9% by 2036. This equates
average, with a higher median
to an increase of 37,149 residents,
weekly income. This high earning
requiring 14,300 new dwellings.
demographic are drawn to the area
Blackburn currently has a population of 14,700 people, which is expected to grow a healthy 18% by 2031 (a
by proximity to major employment hubs, health facilities and tertiary education.
figure forecast to rapidly outpace
29% of the Blackburn population
the surrounding LGA). According
reside in either a semi-detached or
to data collated by the Australian
apartment dwelling, which is now
Bureau of Statistics, the average age
the fastest growing tenure type
the opportunity for the apartment market over the midterm). The landlocked nature of the suburb and restricted amount of developable land will likely transition demand towards apartments over the longterm, as downsizer and young professional demographic continue to grow throughout the eastern region.
of Blackburn residents is 40 years old, in the local market (highlighting with a household size of 2.6 residents.
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3.0 BLACKBURN
‘Median household incomes in Blackburn are 26.7% higher than the Victorian state average’
3.2
Economics & Employment Gross Regional Product
Income Growth
Local Jobs
$11.06 Billion
3.9% p.a
86,294
The City of Whitehorse LGA
the Epworth Eastern Hospital and
Victorian state average at $1,799
contributed a gross regional
the prestigious Deakin University.
per week. High income capacities
product of $11.06 billion to the
Located just 2km from Pace of
act as a driver for property
state economy throughout the
Blackburn, the multimillion-dollar
markets, it permits affordability to
2017/18 fiscal year, a figure that
Epworth health and education
remain as property prices rise over
increased by 2.7% on the previous 12 precinct is undergoing a $40 million months. The region supports over
refurbishment - a development set
86,000 local jobs, with a number
to provide employment growth
of economic centres generating
throughout the surrounding area for
significant commercial output.
years to come.
Based on employment projections
After health services, the largest
workforce. This non-industry
from the State Government’s
industries of employment are Higher
specific workforce is less
strategic growth plan, Plan
Education and Computer Sciences,
susceptible to the volatility
Melbourne, it is anticipated that
Highlighting the high-income
associated with microeconomies
the Eastern Region of Melbourne,
earning demography that dominates
heavily reliant on the mining and
which includes Blackburn, will
the local workforce. ABS data
manufacturing sectors. Economics
see an additional 15% of workers
indicates 51% of the local population
and employment are key indicators
by 2031. White-collar jobs such as
are employed in either a professional
of a markets growth potential. It
those in community and business
or managerial occupation – a rate
allows us to gauge the strength of
services are anticipated to be the
significantly higher than the national
the local tenant pool and highlight
predominant industries for these
average.
the most suitable property for local
additional 55,250 workers. Key drivers for the region include
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the long term.
Median household incomes in Blackburn are 26.7% higher than the
Blackburn's workforce holds a broad industry base, with no employment sector making up more than 12% of the total
demographics.
3.0 BLACKBURN
3.3
Infrastructure Spending The Victorian Government continues to invest in strengthening the state’s infrastructure. Understanding the extent of the population growth that Melbourne is experiencing, it is critical that sufficient infrastructure is in place to accommodate for the demand of future residents. Numerous public and private infrastructure initiatives are being implemented throughout the Melbourne’s south east, particularly within Glen Eira. These initiatives include:
•
•
North East link – This $16
•
Blackburn North Shopping
•
Level Crossing Removal Project
billion transport infrastructure
Centre Redevelopment - With an
– 75 level crossings are being
program has been marked as
estimated completion of 2022,
removed throughout the
the single largest transport
the redevelopment of North
Melbourne transport network
investment in the state’s history.
Blackburn Shopping Centre
to alleviate traffic congestion.
With completion estimated 2027,
includes new commercial spaces
The project has produced new
the project is expected to provide
and $40 million worth of private
facilities to the Greater regions
support over 10,000 local jobs.
investment for local business.
and greater connectivity
Epworth East Hospital
•
Wantirna Health Education
Refurbishment – Estimated
Precinct - The Victorian Planning
to complete early 2021,
authority is working closely
this proposed $49 million
with local government bodies
refurbishment will provide the
to provide a state of the art
proximate Epworth East Hospital
health and education precinct.
with innovative facilities
Located 6 kilometres from Pace
and a larger campus for the
of Blackburn, the centre will
surrounding community.
introduce medical research
between commercial centres. An additional $6.6 billion is to be contributed towards the initiative by 2025.
and educational facilities to the surrounding market.
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3.0 BLACKBURN
3.4
Supply & Demand
Vacancy Rate
Rental Yield
Estimated time on market
3.3%
4.1%
42 days
According to data from the ABS,
children. Highlighting the underlying
The Gross Rental Yield for units in
the proportion of Blackburn
demand for housing in the suburb
the suburb as of February 2020,
residents who rent their dwelling
concentrated on medium to high
stands at 3.9%. The uptake of
has increased between the 2011 and
density dwellings.
residential supply in the suburb
2016 census points, (moving from 21% to 25%). Indicating a demographic continually geared
persons per dwelling and assuming
remains strong with average days on market of 42 days.
a population growth rate is in line
Vacancy rates in Blackburn have been
with state forecasts (shows over 2,600
consistently restricted since mid
Analysing Blackburn’s market
new residents by 2031). Over 1,000
2015, current figures showing 3.3% of
composition, we see that 29% of
new dwellings will be required in the
rental accommodation vacant. With
the population reside in attached
immediate market to accommodate
3% indicating market equilibrium,
homes and units, additionally 48%
the demand of future residents.
Blackburn currently reflects a
towards rental tenure.
of Blackburn dwellings are occupied by lone person(s) or couples without
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Given a household density of 2.6
balanced market.
4.0 BLACKBURN
N Floorplate
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5.0 RENDERS
5.0 RENDERS Pace of Blackburn
City Aspect Pace of Blackburn
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5.0 RENDERS
Dark Scheme Kitchen Pace of Blackburn
Bedroom Pace of Blackburn
5.0 RENDERS
Dark Scheme Bathroom Pace of Blackburn
Living Room Pace of Blackburn
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5.0 RENDERS
Pool Area Pace of Blackburn
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6.0 PACE DEVELOPMENT GROUP
6.0 PACE DEVELOPMENT GROUP Building & Development Pace is an award-winning integrated builder and developer, controlling the entire development process from beginning to end. They have built a strong reputation on the back of their motto: design, construct, deliver. The company has been in operation for over two decades, and their focus on and dedication to customer satisfaction sets them apart from the competition. Their holistic approach to creating liveable projects that are both practical and enjoyable offers a full lifestyle experience to their customers. The Pace team includes industry-leading architects and interior designers and the company prides itself on going above and beyond in every aspect of the entire process, from design to settlement.
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6.0 PACE DEVELOPMENT GROUP
The Icon, St. Kilda Pace Development Group
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