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Property Research Report -Comparative Postcode & Property Analysis
Jenna Trickett – s2799937 Scott Hollonds - s2800815 Property Research Report -Comparative Postcode & Property Analysis
Jenna Trickett – s2799937 Scott Hollonds - s2800815 Semester One, 3219HSL Property Development Process
Semester One, 3219HSL Property Development Process
08
Fall
08
Fall

Jenna Trickett – 4214, Arundel Analysis

Jenna Trickett – 4214, Arundel Analysis

Scott Hollonds – 4216, Biggera Waters Analysis

Scott Hollonds – 4216, Biggera Waters Analysis

This report consists of three parts: two individual reports about two dwellings in two different postcodes and then a third part which compares the two dwellings and concludes with deciding which would be the best investment property with the most rental income. The first part of this report is focused on the postcode of 4214 which consists of suburbs such as Arundel, Parkwood, Molendinar and Ashmore. The price range that has been researched is between $500,000 to $600,000.The dwelling types that was given for this assignment was a house with 3 to 4 bedrooms, 2 bathroom and 2 garage car spaces.
Refer to Appendix Five where you can see a picture of the property that matched this profile which I would purchase is located at 26 Petworth Court in the suburb of Arundel. It is a 4 bedroom, 2 bathrooms, with 2 garage spaces and 2 separate living areas. It has a pool, an outdoor entertaining area, has ducted air conditioning and is built on an 805m2 block of land (REA Group 2013). It has an advertised price of $595,000 with easy access to local shops and transport. The house comes is zoned as a detached dwelling which is just an average block of land for houses and is within walking distance of the local golf course.

Postcode Analysis
Refer to Appendix Two where you can see the vacancy rate for the postcode of 4214 is 1.3% in July 2013 which is very good, Parkwood would be a major factor in this percentage as it is the suburb right next to Griffith University and soon to be the new Griffith University Hospital. The vacancy rate is benefiting from a high impact of students renting in Parkwood and as of September 28 the cost of rent should increase as doctors and nurses working at the hospital will be looking for local places to rent.
Appendix Three outlines the area of the postcode 4214 on the Gold Coast. There is many upcoming developments in this postcode a major one being the development of the ‘GoldLinq Light Rail’ and the Griffith University Hospital. These major developments are all part of the preparation for 2018 Commonwealth games which Gold Coast won the bid for. The ‘GoldLinq Light Rail’ will eventually travel down Olsen Avenue and then down Brisbane Road to the Helensvale Train Station (refer to Appendix Four) which will not only create an advantage for this postcode but will definitely increase value to houses within the suburb.
The 2018 Commonwealth Games will bring an enormous impact of the 4214 postcode as the Commonwealth Game Village will be built in Parklands right next to Griffith University Hospital. Having this development so close to suburbs in the postcode will increase the rental investments made in the area. The Commonwealth Games will attract a lot of tourism to the Gold Coast but also to this postcode as this is where the popularity of the competitors from each country will be active.
According to the 2011 Census Quickstats 4214 has 35,807 residents with the median age of 37 years old. In total there are 13,461 private dwellings with an average of 2.8 people per household which is a reasonable amount considering that suburbs close to the University a high rental houses. The median weekly rent was found to be $380 per week this is steady considering that the postcode of 4214 covers all types of dwellings such as; units, townhouses, duplexes, standard homes and executive homes. The median monthly mortgage repayments per month is $2,000 which calculates to a home loan of approximately $337,500 using today’s interest rates (Australian Bureau of Statistics 2011).
‘In 4214, 32.0% of people were attending an educational institution. Of these, 27.4% were in primary school, 20.4% in secondary school and 23.9% in a tertiary or technical institution’ (Australian Bureau of Statistics 2011). These statistics show that the community is highly educated with many facilities in the postcode to support this level of education from primary schools, high schools, TAFE Institutions and a University. 94.2% of all private dwellings are being occupied in 4214. With 44.8% of houses in this postcode having 4 bedrooms or more this shows that the house I have chosen is the most popular type. The tenure of 4214 is very good as 25.7% of people own their own homes and 41.1% own their home with a mortgage and 30.1% of houses are rented out. (Australian Bureau of Statistics 2011)

Suburb Analysis
Arundel is a very diverse suburb with a large variety of different houses, townhouses and units. One of the main attractions in Arundel is the Arundel Hills Golf Club with its superb golf course. The golf course attracts many home buyers with its unique values such as being a great location. Arundel is a location that is very competitive in the market as it is a central location. It is close to major shopping centres, local shops, the highway, the beach and schools (primary and secondary). There are also numerous of exercise facilities such as bike trails, walkways and conservation areas to walk through.
Arundel is well linked with bus stops throughout the suburb helping people get to major tourist attractions around the coast such as the Theme Parks, major shopping centres and the beach. Developers seem to have good faith in Arundel with new developments occurring all the time for example the recent development of ‘Seachange Village’. ‘Seachange Village is Queensland’s residential lifestyle resort for over 50’s mature age living with the most luxurious facilities’ (Seachange Village Arundel 2013). Arundel has constant growth especially over the past five to seven years with strong buyers in all different levels of the market such as both resale properties and new developments (REIQ 2013).
There is an upper market to Arundel which is known as Arundel Hills, this where more expensive houses are found. There is also another development in Arundel which is found just below the Arundel Country Club called ‘Tee Trees Residential Golf Community’ which can be seen as a bit more upmarket in Arundel, it was also found that most residents in this estate own their own houses. Refer to Appendix One where REIQ shows the median house pricing in Arundel over the past couple of years. According to this chart the median house price for September 2012 in Arundel was $470,000.
Arundel has very promising statistics when it comes to renting and house payments. According to the 2011 Census Quickstats the median rent per week in Arundel is $375, the average people per household is 2.8 which means that houses aren’t overcrowded especially the rentals. The median housing repayments is $2,095 per month which in the current market is approximately a $353,000 mortgage. The population of Arundel back in 2011 was 9,575 people which are appropriate as it means it is not overcrowded (Australian Bureau of Statistics 2011).
At the back of the well-known ‘Tee Trees Estate’ is the Coombabah Conservation Area which Gold Coast City Council bought back in 2012. They have approached residents surrounding this area and asked their opinions on what they wish to be done in development. The council have finished their survey and their findings was that residents want walking paths and bike trails that join on to all surrounding streets, and another idea that was proposed by residents was to also have a walking bridge that goes across the Coombabah Creek to Westfield Helensvale Shopping Centre (Irwin 2013, p. 23). This development could be a potential selling point for residents in the area.

Rental Investment, Property Location & Justification
Looking on a real estate website a house of similar location with 4 bedrooms, 2 bathrooms, 2 garage spaces with an in ground pool and an outdoor entertaining area rents for approximately $600 per week (REA Group 2013). This house is also within walking distance of local shops, schools and the local golf course. This is higher than the median rent for this suburb of $375 per week. The house that I have chosen is in the upper class of Arundel (surrounding the golf course) which makes the advertised price and advertised rental price is higher than the median prices.
This property would be a good rental investment as it would have a high rental income if it rented out at approximately $600 per week. This would create a rental income for the owner of $31,200 per annum. Using the Return on Investment equation: ($31,200/$595,000) x 100 = 5.24%. Having said that this is without costs, there are many costs to consider such as electricity, water, rates, property manager and maintenance. There are many costs when renting a property however the Australian Government creates incentives such as negative gearing and also capital growth is an advantage.
Location is everything to people especially when renting as it is competitive and if it is not accessible enough they will choose another house that is more accessible. The property chosen is in a great location as it is very central in the Gold Coast; it is close to major/local shops, the beach, schools, Griffith University, the new Griffith University Hospital, the new light rail system and leisure facilities. Being a rental property and relatively close to Griffith University it is most likely that students will rent out this house and most students will use public transport to get to university. Bus stops are within walking distances and Helensvale Train Station only a short drive away and soon enough will be close to Light Rail stops going down Brisbane Road and Olsen Avenue.
SQM has stated that the vacancy rate for the postcode of 4214 is 1.3% in July 2013 (SQM Research 2013). This is a relatively good considering that the housing market has not been very strong this financial year. This vacancy rate is also low due to all of these suburbs being close to Griffith University accommodating for students. Soon doctors and nurses for the new Griffith University Hospital may be relocating closer to work and therefore decrease the vacancy rate even more.
According to the Office of Economic and Statistical Research overall Gold Coast has a 3.1% vacancy rate in residential rental detached houses in the last June quarter (Office of Economic and Statistical Research 2012). Gold Coast’s vacancy rate was much higher than Brisbane’s of 1.8% and but more relevant to the whole of Queensland which was 2.8%. This shows that there are not many people renting in the market currently because house prices have fallen and renter could potentially become house owners. This is great for the community as more people own their own homes but bad for rental investments as it decreases the market.

| | | | | | | | | | | | | | | | | | | |
Appendix One

Appendix Two

Appendix Three

Appendix Four

Appendix Five

Reference List

Australian Bureau of Statistics 2011, 2011 Census QuickStats, ABS, Canberra, viewed 27 August 2013, via AusStats Database, <http://www.censusdata.abs.gov.au/census_services/getproduct/census/2011/quickstat/309031235?opendocument&navpos=220>.
Irwin, K 2013, Coombabah Lakelands Conservation Area, Arundel Section, viewed 28 August 2013, <http://www.goldcoast.qld.gov.au/documents/bf/tee-tree-conservation.pdf viewed 28/08/13>.
Office of Economic and Statistical Research, 2012, Rental Housing Vacancy Rates QLD: June Quarter 2012, The State of Queensland, viewed 28 August 2013, <http://www.oesr.qld.gov.au/products/briefs/rental-housing-vacancy-rates-qld/rental-housing-vacancy-rates-qld-201206.pdf viewed 28/08/13>.
REA Group 2013, 26 Petworth Court Arundel Qld 4214, viewed 27 August 2013, <http://www.realestate.com.au/property-house-qld-arundel-114642551#>.
REIQ 2013, Suburb Profile – Arundel, viewed 27 August 2013, <http://www.reiq.com/suburbs?su=Arundel&type=1>.
Seachange Village Arundel 2013, viewed 27 August 2013, <http://www.seachangegoldcoast.com.au/>.
SQM Research 2013, Residential Vacancy Rates: Postcode 4214, viewed 27 August 2013, <http://www.sqmresearch.com.au/graph_vacancy.php?postcode=4214&t=1>.
State okays Olsen Avenue light rail route 2010, n.d., image, viewed 27 August 2013, <http://www.goldcoast.com.au/article/2010/02/24/192201_gold-coast-news.html>.

The second part of this report is focusing on the postcode 4216, which includes the suburbs of Biggera Waters, Coombabah, Hollywell, Paradise Point, Runaway Bay and South Stradbroke. The price range that has been researched is between $500,000 to $600,000.The dwelling types that was used for this assignment was a house with 3 to 4 bedrooms, 2 bathroom and 2 garage car spaces.
6 Matina Street Biggera Waters is the property that has been selected to purchase that matches the above stated criteria. This dwelling consists of 4 bedrooms, 2 bathrooms, ensuite in master bedroom with walk-in robe, large designer kitchen, polished timber flooring throughout, spacious outdoor entertaining deck double lock-up carport plus extra room for trailers/boats etc, on 506m2 Res B land. (REIQ PTY LTD, 2013) This property is listed at $585,000 (Refer to appendix One for picture of property)

Postcode Analysis
The vacancy rate of postcode 4216 is at 2.4%, which is good considering 3% is measured as a balanced market. (Domain PTY LTD, 2013) Runaway Bay would be a big factor in this percentage as it is the major suburb in this postcode in size and facilities including marina, shopping centre, sporting complex, community hall etc. Runaway Bay is approximately 45 minutes’ drive from the Coolangatta airport and 10 minutes drive from nearby Helensvale train station. Brisbane airport is approximately one hour away by car. (Refer to appendix three-postcode map) The vacancy rate is benefiting from all these local facilities in the area making Runaway Bay a convenient suburb to live in. (Refer to appendix two for vacancy rate graph)
Development spending in the Runaway Bay area has nearly halved over the past 12 months and is currently at a low, though projects have been put into place to continue growth in this area. Projects that have been added to the development pipeline include: * Bupa Aged Care retirement project at Coombabah - $25 million, * Pine Ridge Road apartment project at Coombabah - $20 million * Harbour Terraces apartment project at Biggera Waters - $15 million * Runaway Bay Sports Super Centre upgrade at Runaway Bay - $9 million
(Colliers International , 2013)
There are 33,736 residents in the 4216 postcode with the median age of 39 years old. There is a total of 16,345 private dwellings with an average of 3.1 persons her household. The median weekly rent was found to be $380 per week this is steady considering all the different dwelling types in the area. The median monthly mortgage repayment per month is approximately $1,800 (Australian Bureau of Statistics 2011). The tenure of 4216 is excellent as 28% of people own their own homes and 40% own their home with a mortgage and the rest of houses are rented out. (Australian Bureau of Statistics 2011)

Suburb Analysis
Biggera Waters is a suburb located on the western side of the Broadwater and is north of the suburb of Labrador, on the Gold Coast in Queensland, Australia. At the 2006 Census, Biggera Waters had a population of 5,391. Real estate varies in Biggera Waters from older style family homes and duplexes to waterfront units and waterfront luxury homes; Biggera Waters is a very diverse suburb with a large variety of different dwellings. Some of the main attractions about living in Biggera Waters include the walk long the Broadwater, great fishing locations, Water front living, the Metro Market place, and the famous Dublin Docks Irish Pub. There are a variety of schools in Biggera Waters including public, private, primary and secondary. There are also medical centres near by as well as public transport.
With Runaway bay no longer being the development hotspot it was once, however Biggera Waters is a standout in the area specifically around the popular Harbour Town Shopping Centre. There is $425 million in development projects in that area, all of which are in the planning stages. The biggest is the $400 million Harbour Quays in Biggera Waters, which includes a $300 million retirement component and $100 million apartment component, being developed by the Lewis Land Group of Companies. (Colliers International , 2013) Biggera Waters has shown steady growth especially over the past five years with strong buyers in all different levels of the market such as both resale properties and new developments (REIQ 2013). (Refer to appendix four-development site)
Biggera Waters median rent per week is $400 per week with the average people per household is at 3.2. The median housing repayments is $2,285 per month. (Australian Bureau of Statistics 2011).
Rental Investment, Property Location & Justification
For a house of similar location with 4 bedrooms, 2 bathrooms, 2 space garage and an entertaining area, rents for approximately $600-$700 per week (REA Group 2013). 6 Matina Street Biggera Waters has a higher rent then the median for this suburb of $450 per week. The house that I have chosen has been fully renovated with designer fitting and finishes aim at a young modern family that loves to entertain which makes the advertised price and advertised rental price is higher than the median prices.
This property would prove to be an excellent rental investment, as it would have a high rental income if it were rented out at approximately $650 per week. Generating a rental income for the owner of $33,800 per annum. Using the Return on Investment equation: ($33,800/$585,000) x 100 = 5.77%. This investment equation has been estimated without costs, these costs to consider such as electricity, water, rates, property manager and maintenance.
When renting a property location is one of the key aspects tenants are looking for. With the market being very competitive a good location sets aside a property from the rest. The property chosen is in a great location as it is a development rich suburb north of the Gold Coasts centre. Biggera Waters is an up and coming suburb with considerable amount of developments in the pipeline, this is good news for the suburb putting money into the community making a great location for a investment property. With a vacancy rate of 2.1% for the suburb, this great for renting the property out as it shows it is an above bench mark of the of the Gold Coast’s 3.1% vacancy rate. (SQM Research 2013)
Appendix One

Appendix Two Appendix Three

Appendix Four

Works Cited
Australian Bureau of Statistics . (2011). 2011 Census Community Profiles. Retrieved August 30, 2013, from Australian Bureau of Statistics: http://www.censusdata.abs.gov.au/census_services/getproduct/census/2011/communityprofile/POA4216?opendocument&navpos=230
Colliers International . (2013, April 08). Development spending in Runaway Bay at a low. Retrieved August 30, 2012, from Colliers International News: http://www.colliers.com.au/News/News-details.aspx?NewsId={FF0C7362-ABB1-4FE8-B5D8-B2702EA735E4}
Domain PTY LTD. (2013). Public Suburb Profile. Retrieved Aug 30, 2013, from Domain: http://www.domain.com.au/Public/suburbprofile.aspx?mode=research&searchTerm=Runaway%20Bay
REA Group 2013, 6 Matina Street Biggera Waters Qld 4216, viewed 30 August 2013, <http://www.realestate.com.au/property-house-qld-arundel-114642551#>.
REIQ PTY LTD. (2013). BIGGERA WATERS, 6 Matina Street. Retrieved August 30, 2013, from REIQ Property : http://www.reiq.com/property?pid=2493579 SQM Research 2013, Residential Vacancy Rates: Postcode 4216, viewed 30 August 2013, <http://www.sqmresearch.com.au/graph_vacancy.php?postcode=4214&t=1>.

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