Ipswich Outlook

G O L D C O A S T • I P S W I C H • M A C K AY

IPSWICH OUTLOOK Ipswich is centrally located in booming south east Queensland, with the state’s capital Brisbane to the east, and numerous rural and agricultural hubs to the west. The city is ideally positioned on the national road network, 40 minutes drive from Brisbane and an hour’s drive from the Gold Coast.

Ipswich is Queensland’s oldest provincial city and has a rich history, renowned for its architectural, natural and

JUNE 2016

cultural heritage. It offers all the modern facilities and attractions of a progressive city, and is an exciting place to live, work, invest and visit.

The city has one of the fastest growing populations in Australia, with a youthful demographic and affordable housing. Ipswich plays a key role in the State Government’s strategy to direct population growth away from the coast – making it the ideal place to invest.

LOCATION: Ideally positioned on the national

RAPID DEVELOPMENT: Major features in

RENTAL GROWTH: The total rental

Coast to the south, and the agricultural hubs of

line, expansion of the University of Southern

2016) with a current vacancy rate of 1.8%

road network with Brisbane to the east, the Gold Lockyer and Fassifern Valleys to the west.

SPRINGFIELD: The award-winning

Springfield master planned community is located in Ipswich.

Ipswich has one of the fastest growing populations in Australia, increasing by 700% in the last decade (McCauley 2016). The Queensland Government has earmarked Ipswich and its surrounding suburbs as a major growth corridor.

the area include a new hospital, new railway

Queensland, Amberley RAAF base expansion and extensive road infrastructure projects.

population is 56.16% (Real Estate Investar (McCarroll 2016).

PROPERTY PRICE GROWTH: The median price for new homes is $420,000.

A vast array of new roads, transport links and accessible residential communities are opening an important chapter in the development of Queensland’s fastest growing city. These infrastructure initiatives are a catalyst for job creation and commercial development, and will add value to property in the surrounding areas (Ipswich City Council 2016).

The estimated resident population of Ipswich is currently 193,015 people.

The projected population of Ipswich is expected to top 435,000 by the year 2031 (Queensland Government 2009).

ECONOMIC OUTLOOK:

SPRINGFIELD

RAPID DEVELOPMENT Beside the flurry of development at Springfield, many areas of Ipswich have major development projects and infrastructure upgrades planned and underway.

The hotly anticipated $200 million upgrade to the Ipswich Motorway will greatly reduce congestion and improve the road’s flood immunity (Jacques 2016). The motorway caters to more than 85,000 motorists, including 12,000 trucks, daily.

The RAAF Amberley base, the largest operational base in the country, is a large employer in the Ipswich area and an anchor tenant for a potential aeronautical precinct. The $1 billion base expansion will provide increased air power capability and generate 3,500 civilian jobs (Gould 2016).

By the end of 2016, a workforce of 1,500 contractor staff will be working on infrastructure projects at the air base (Lifestyle 2016). The ten projects will be delivered over the next four years.

The local railway industry has been revived by Canadian multinational Bombardier, which was awarded the State Government tender to build a $190 million railway maintenance centre at Wulkuraka.

Ipswich produces a Gross Regional Product (GRP) of $7.95 billion, 2.7% of the state’s Gross State Product (Economy.ID 2016).

The city’s key industries include manufacturing, health care

and social assistance, retail trade, public administration and

safety, construction, and education and training. In 2014/15, Ipswich contributed 6% of Queensland’s employment and 5.5% of its value add (Economy. ID 2016).

The award-winning Springfield master planned community has been developed over the last decade as a satellite city.

Already with a new hospital, business park and railway

line, Springfield currently has several other projects in the

Information technology is a key focus for Ipswich with council dubbing Accenture to progress the city’s ‘Smart City’ Transformation Strategy and Implementation Plan.

The plan seeks to deliver an innovative blueprint to optimise city operations, enhance community engagement, cultivate digital technology capabilities and lead economic innovation (LeMay 2016).

The $1 billion Ipswich CBD revitalisation program will see commercial towers, a 60,000m2 shopping centre with cinemas, library, car parking and community amenities (Tempo Living 2016).

The new $220 million Polaris Data Centre at Springfield is a hi-tech, bulletproof fortress that safeguards the State Government’s IT assets.

Last year, the $550 million Dusit Thani Brookwater Golf & Spa Resort launched, which has been one of the largest foreign investment developments in Australian history (Pierce 2015).

It is the biggest large-scale tourism project ever built in the region, brining international visitors to the city.

Current statistics predict that by 2026, the Ipswich economy will be $12.7 billion, a growth of 159.2% since 2008 (Tempo Living 2016).

pipeline including a $50 million expansion of the University of Southern Queensland, $70 million headquarters for GE, $80 million Mater Hospital, $100 million Brookwater Resort and plans to further extend the Orion shopping centre

I N F R A S T R U C T U R E A N D D E V E LO P M E N T AT A G L A N C E :

(Pressley 2016).

• $200 million upgrade to the Ipswich Motorway

In 2013, the development of a $1.2 billion rail line

• $1 billion expansion to the RAAF base at Amberley

connected Springfield to Brisbane CBD and beyond (Tempo

• $190 million railway maintenance centre

Living 2016).

Aveo has recently announced Springfield as the location for their new $1 billion retirement village, bringing with it 5,400 jobs over the next 20 years of construction and a further 580 permanent jobs once the development is complete (Howarth 2016).

• $220 million Polaris Data Centre • $550 million Dusit Thani Brookwater Golf & Spa Resort

RESIDENTIAL MARKET INSIGHTS Ipswich has one of the fastest growing populations in Australia with vast amounts of inexpensive land, affordable housing, a young demographic and comparable household incomes to wider Queensland (Pressley 2016).

The resident population of Ipswich was 166,908 in 2011 and currently stands at 193,015 people.

The projected population of Ipswich is expected to top 435,000 by the year 2031.

Significant residential and commercial development has taken place in the region including housing, schools, shopping centre developments and business precincts.

A report by the Department of Infrastructure and Transport forecasts 56,000 jobs will be created in Ipswich’s central suburbs by 2026 (News.com.au 2016).

The jobs growth, coupled with affordable prices, will fuel demand for housing. The area has been marked as a ‘hotspot’ in terms of new home building and population growth.

With 435,000 people to be living in Ipswich by 2031, the Ipswich council is beginning to make inroads on the infrastructure needed to cater for them. Planning schemes are underway to make room for economic and social development without impacting on the area’s natural environment.

Sustainable population growth is supported by investment and leads to demand for services and materials during construction, and demand for services following construction.

Well-managed population growth in Ipswich, which is supported by the necessary infrastructure and services, increases demands, leads to job creation and increases productivity and wealth (Moody 2015).

HOUSING SUBURB PROFILES: SNAPSHOT OF IPSWICH 12-MONTH GROWTH 5.59%

IPSWICH WEST IPSWICH

-

RACEVIEW FLINDERS VIEW

3.33% 3.43% 4.18%

C O L L I N G W O O D PA R K

5.12

BRASSALL

W E E K LY M E D I A N A D V E R T I S E D R E N T

IPSWICH WEST IPSWICH

$295 $273

RACEVIEW

$325

FLINDERS VIEW

$330

C O L L I N G W O O D PA R K

$335

BRASSALL

$317

G R O S S R E N TA L Y I E L D

IPSWICH WEST IPSWICH

4.92% 4.67% 5.45%

RACEVIEW FLINDERS VIEW C O L L I N G W O O D PA R K BRASSALL

4.74% 4.18% 5.12%

• 34.1% of households are couples with children. 28.8% are couples without children.

• 36.2% of the population of Ipswich has a mortgage, 22.3% fully own their own home and 35.9% are currently renting.

• The market is characterised by a lower property entry price, a youthful demographic and a rapidly growing population.

• Ipswich is an increasingly attractive place for property investors to invest, with a low entry price and above average rental yields (Pressley 2016).