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EVES ON THE RIVER

TENERIFFE FESTIVAL CITYCAT TERMINAL

TENERIFFE IS HOME TO VIBRANT COMMUNITY EVENTS AND FESTIVALS

SET AMONGST A WEALTH OF LIFESTYLE AMENITY WITHIN WALKING DISTANCE

TENERIFFE OFFERS A RANGE OF TRANSPORT OPTIONS TO BRISBANE’S KEY EMPLOYMENT NODES

Teneriffe accommodates all three of the Urbis economics and research fundamentals that make a sustainable suburb – Population, Infrastructure and Employment.

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RESIDENTIAL MARKETTeneriffe achieves a premium over other suburbs in Brisbane’s Inner North / Pg 02

RENTAL MARKETApartments in Teneriffe have shown significant rental price growth in the past 12 months / Pg 03

STRATEGIC LOCATIONLocated within close proximity to a wealth of lifestyle amenity / Pg 04

EMPLOYMENT GROWTHTeneriffe is expected to have access to 102,806 new jobs within a three kilometre radius by 2031 / Pg 06

INFRASTRUCTURE & LIFESTYLETeneriffe and its surroundings will benefit from over $3.3 Billion worth of future infrastructure investment / Pg 07

JULY 2015

A CONTEXT ON BUSINESS, CULTURE, LIFESTYLE AND RESIDENTIAL

OUTLOOK TENERIFFE

As one of Brisbane’s hidden gems, Teneriffe combines waterfront living with significant lifestyle amenity.

An analysis of major capital cities highlights the relative affordability

offered by the Brisbane apartment market. For the March quarter

2015, Brisbane recorded a median apartment price of $420,000

being $22,555 and $192,000 more affordable than Melbourne and

Sydney respectively. This affordability paired with added demand for

urban living within proximity to the key infrastructure and amenity

has been driving new apartment demand within Inner Brisbane.

Teneriffe is an established blue-chip, riverfront suburb offering premium

residential product. This premium is attributed to prestige heritage

location and local infrastructure including City Cat and River Walk as

well as Teneriffe’s’ suburban amenity including retail, cafes, bars and

restaurants. The median apartment sale price, including new and

established apartments was $565,000 ending March 2015 representing

a significant 34.5 per cent premium over the Brisbane LGA.

Unlike the median price for existing product, Urbis’ Apartment

Insights publication provides independent research into

unconditional sales for off-the-plan apartments. In March 2015, the

publication recorded a total of 34 active off-the-plan apartment

projects within the Inner North, of these 16 were located in the

Newstead with only one active project located in Teneriffe –

highlighting a limited supply of new projects in the suburb.

Across the 34 active projects in the March quarter 2015, a weighted

average sale price of $517,857 was recorded for the Inner North –

up $3,000 on the previous quarter. New and near new apartment

product in Teneriffe recorded a median sale price of $643,750

outperforming the Inner North and equivalent Newstead apartments

which recorded a weighted average of $515,972 over the same

period. Comparing the precincts, Teneriffe recorded a premium of

21 per cent over the off-the-plan Inner North apartments and 22

per cent over the Newstead off-the-plan apartments. Increasing

demand, paired with the undersupply of new apartments is

expected to spur further premiums being demanded for new and

superior apartment product introduced to the suburb of Teneriffe.

Teneriffe has historically demonstrated high demand for apartment

development despite demonstrating limited opportunities available

due to the regions underlying heritage protection. Over the past five

financial years ending March 2015*, Teneriffe has established itself

as an undersupplied, but highly sought after suburb area offering

while neighbouring Newstead has demonstrated unprecedented

infill growth. Over this time the Inner North has recorded more

than 5,500 new multi-unit dwelling approvals of which Teneriffe

has registered 144 new dwelling approvals and Newstead has

recorded over 42 per cent (equating to 2,400 dwellings) of the new

development approvals in the Inner North.

Teneriffe is currently undersupplied making up

only 2.5% of the Inner North’s apartment approvals

2 URBIS TENERIFFE OUTLOOK© URBIS.COM.AU

RESIDENTIAL MARKET ANALYSIS

Prepared by Urbis; Source: ABS

Prepared by Urbis; Source: RP Data

Prepared by Urbis; Source: Urbis Brisbane Apartment Insights, Primary Research, RPData

CAPITAL CITY APARTMENT COMPARISON MARCH 2015

NEW DWELLING APPROVALS – APARTMENTS/UNITS TENERIFFE, NEWSTEAD & INNER NORTH

NEW APARTMENT PRODUCT WEIGHTED AVERAGE SALE PRICE

Prepared by Urbis; Source: RPdata

ESTABLISHED PRODUCT COMAPARISON MEDIAN APARTMENT SALE PRICE - MARCH 2015

INNER NORTH (REMAINDER)NEWSTEADTENERIFFE

0

500

1000

1500

2000

04/05 05/06 06/07 07/08 08/09 09/10 10/11 11/12 12/13 13/14 14/15 (3Q Only)

NU

MBE

R O

F A

PART

MEN

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FINANCIAL YEAR

BRIS MELB SYDMEDIAN UNIT SALE PRICE (MAR 2014)

$420,000 $442,555 $612,000ANNUAL CHANGE IN MEDIAN PRICE (MAR 05 – MAR 15)

4.2% 4.6% 4.9%

MORE AFFORDABLE + $22,555 + $192,000

TENERIFFE

$643,750INNER NORTH

$517,857

PREMIUM

21%

NEWSTEAD

$515,972

PREMIUM

22%

TENERIFFE

$565,000BRISBANE LGA

$420,000 34.5% PREMIUM

Proximity to the Brisbane CBD along with the lifestyle offerings

of New Farm, Fortitude Valley and Newstead has created a

growing demand for apartments within Teneriffe. This is evident

through the premium being achieved over the Brisbane LGA and

Inner City suburbs with median weekly rents recording between

16 and 34 per cent higher than the Brisbane LGA and up to 5.4

per cent higher than comparable Inner City suburbs.

Long-term price growth in Teneriffe has also been positive, with

an average annual increase ranging between 6.4 per cent and

8.3 per cent for one, two and three-bedroom apartments over

the past 10-years to March 2015.

Further analysis of the Teneriffe rental market revealed that

new apartment product is achieving significant premiums over

established product. In March 2015, new and near-new one and

two-bedroom apartments in Teneriffe recorded a median weekly

rent of $500 and $650 respectively, which is between a 28 and

30 per cent premium over established product. New and near-

new three-bedroom apartments recorded a median weekly rent

of $1,070 for the same period which is a premium of 43 per cent

over establish product.

As current and future apartment supply in Teneriffe remains low

it is expected that CBD proximity and premium lifestyle amenity

will continue to drive demand in the area. Strong rental yields,

limited supply and long-term rental price growth are expected

to drive future investment opportunities and market interest in

Teneriffe.

New and near new apartments in Teneriffe are

demanding up to 43 per cent premium over established

rental product

Apartments for rent in Teneriffe have demonstrated

long-term rental growth ranging between 6.4 and 8.3 per cent per annum

over the past decade

© URBIS.COM.AUURBIS TENERIFFE OUTLOOK 3

RENTAL ANALYSIS

Prepared by Urbis; Source: Residential Tenancies Authority (RTA)1 Includes Teneriffe and New Farm

Prepared by Urbis; Source: Residential Tenancies Authority (RTA), Realestate.com.au1 Includes Teneriffe and New Farm

Prepared by Urbis; Source: Residential Tenancies Authority (RTA)1 Includes Teneriffe and New Farm (4005)2 Includes Bowen Hills, Fortitude Valley, Newstead and Herston (4006)

WEEKLY RENTAL GROWTH - ESTABLISHED PRODUCT (RTA) TENERIFFE1 CATCHMENT

NEW RENTAL PRODUCT VS EXISTING PRODUCT TENERIFFE - MARCH 2015

ESTABLISHED PRODUCT RENTAL COMAPRISON TENERIFFE, NEWSTEAD & BRISBANE LGA - MARCH 2015

ESTABLISHED PRODUCT (RTA) $685

NEW & NEAR NEW PRODUCT $1,070

43% PREMIUM

3

321


NEW & NEAR NEW PRODUCT $650

30% PREMIUM

2


NEW & NEAR NEW PRODUCT

$500

28% PREMIUM

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GROWTH PA (5-YEAR) 6.1% 3.5% 0.1%

GROWTH PA (10-YEAR) 8.3% 6.4% 6.4%

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ESTABLISHED PRODUCT (RTA) - TENERIFFE1 $390

$355ESTABLISHED PRODUCT

(RTA) - BRISBANE LGA $335

ESTABLISHED PRODUCT (RTA) - NEWSTEAD2









Entertainment, Retail & Dining1 Chinatown Mall

2 Brunswick Street Mall (Redevelopment)

3 Judith Wright Centre of Contemporary Arts

4 Howard Smith Wharves (Proposed)

5 Brisbane Powerhouse

6 Gasworks

7 Emporium

8 Homemaker Centre

9 RNA Showgrounds

10 Woolstores

Education11 All Hallows’ Secondary School

12 St Joseph’s College

13 Brisbane Boys/ Girls Grammar School

14 New Farm Primary School

15 Holy Spirit Primary School

Recreation & Green Space16 New Farm Park

17 River Front Walk Way

18 Newstead Waterfront Park

19 Botanic Gardens

20 Gabba

Commercial21 Bank of QLD

22 Energex

23 NAB, Westpac, ANZ

Health24 Mater Hospital

25 Royal Brisbane Hospital

With a riverfront setting, Teneriffe offers premium lifestyle

amenity along with proximity to the Brisbane CBD and

surrounding employment nodes.

Train Station

CityCat Terminal

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NEWSTEAD

TENERIFFE

NEW FARM

MACQ

UARIE

ST

SKYRING TERRACE

WALKABILITY & ACCESSIBILITY Teneriffe


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NEWSTEAD

BOWEN HILLS

BRISBANE CBD

FORTITUDE VALLEY

SKYRING TERRACE

JAMES ST

BRUNSWICK ST

BREAKFAST CREEK RD

AIRPORT

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Located less than three kilometres from the Brisbane CBD, Teneriffe

is a hidden gem that offers heritage-listed lifestyle destinations

centred around the Teneriffe Woolstores which have undergone

dramatic transformation in making the suburb one of the city’s most

desirable and iconic locations. There is no shortage of recreation,

entertainment and cultural offerings in Teneriffe, within close

proximity to premium lifestyle amenity located along Florence

Street and Vernon Terrace. Teneriffe is walking distance from cafes,

restaurants, bars and retail boutiques as well as New Farm Park, the

Brisbane Power House and River Walk.

Teneriffe is well-serviced by ferry and bus networks, providing good

transport connectivity including City Glider bus service and City Cat

terminal servicing the Brisbane CBD and other key employment

nodes. Significant commercial development in surrounding areas has

resulted in an increase in white-collar employment in the area which

has positioned Teneriffe as a popular suburb for inner-city living

among high income professionals. These drivers, paired with the

areas heritage protection which has allowed the suburb to maintain

its charm has also continued to draw new residents to Teneriffe

when compared to surrounding infill development precincts.


With 91 per cent of the population employed as

white-collar professionals, Teneriffe residents earn

69 per cent more on average than the Brisbane LGA


EMPLOYMENT & DEMOGRAPHICS

As the Brisbane CBD continues to expand and companies are

realising the increasing value of the CBD fringe, the construction of

commercial office space in surround areas continues to increase. The

Brisbane CBD, Fortitude Valley and Newstead currently have more

than 3,110,000sqm of commercial office space which equates to

the potential for over 311,055 employees (based on one person per

10sqm). This does not include the significant number of commercial

development that has been proposed or that is currently under

construction. By 2031, it is projected that Teneriffe will offer more

than 330,000 jobs within a three kilometre radius which is a total

of approximately 100,000 new jobs or 5,000 every year until 2031.

Growing commercial infrastructure, paired with CBD proximity and

premium lifestyle amenity has seen Teneriffe develop as a boutique

suburb made up of a large portion of high-income professionals.

Teneriffe recorded 63 per cent of its population as managers and

professionals, and 91 per cent as white-collar employees at the

2011 Census. This was significantly higher than the Inner North

and Brisbane LGA totals. As a result, Teneriffe recorded an average

annual income that was 69 per cent and 25 per cent higher than the

Brisbane LGA and Inner North respectively. These demographics are

likely to drive future demand for premium apartments in Teneriffe.

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TENERIFFE / NEW FARM / NEWSTEAD 1,802

2011 CURRENT 11,019 2031 FORECAST 12,821

FORTITUDE VALLEY 11,769


BRISBANE CBD 65,633


BOWEN HILLS 12,604


SPRING HILL 3,398


HERSTON 7,600


TOTAL NEW JOBS

TOTAL NEW JOBS

TOTAL NEW JOBS

TOTAL NEW JOBS

TOTAL NEW JOBS

TOTAL NEW JOBS

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Prepared by Urbis; Source NIER

Teneriffe leverages off more than $12 Billion

worth of established and future infrastructure

TENERIFFE PARKTeneriffe

NEW FARM PARK

New Farm

CITY BOTANIC GARDENS Brisbane City

RIVERWALKTeneriffe to Brisbane City

BRUNSWICK ST RETAIL & ENTERTAINMENT

Fortitude Valley

CHINATOWNFortitude Valley

JAN POWER’S

FARMERS MARKETS New Farm

THE POWERHOUSE New Farm

QUEENS ST PLAZABrisbane City

GASWORKS PLAZANewstead

TENERIFFE DINING PRECINCT

Teneriffe

JAMES ST RETAIL & LIFESTYLE PRECINCT

Newfarm

• More 130 Specialty Shops

• 25+ Cafes & Restaurants

• 50+ Retail Boutiques

• 5 Bars/Pubs

• 15+ Cafes

• 20+ Restaurants


Teneriffe’s location allows it to leverage off an abundance of existing

infrastructure which puts it in an envious position over other inner city

suburbs. There is also a significant amount of future infrastructure

investment planned for the surrounding areas of Teneriffe which will

help to support future growth. Teneriffe offers a wealth of lifestyle

amenity including world-class dining precincts, boutique retail,

and numerous entertainment and cultural experiences. Significant

infrastructure along with premium lifestyle hubs are expected to

continue to attract new residents to Teneriffe.

INFRASTRUCTURE & LIFESTYLE

NEWSTEAD RIVERPARK $2 BILLION

The Newstead Riverpark urban renewal precinct will turn 17 hectares of riverfront land into a new mixed-used development over the next decade. Newstead Riverpark will be a key dining, entertainment and retail destination, together with

a commercial and lifestyle hub, with a central lake and five hectares of parklands.

GASWORKS NEWSTEAD $1.1 BILLION

Within Newstead Riverpark, the $1.1 billion Gasworks development will provide a wealth of retail and commercial activities. It is proposed to include 60,000 sqm of commercial space and 20,000 sqm of retail space,

further expanding the existing retail offering.

HERSTON QUARTER REDEVELOPMENT $80+ MILLION

Following the relocation of the Royal Children’s Hospital in late 2014, the Queensland Government is looking to redevelop the 4.8 hectare site in Herston into a mixed-use residential and commercial master-planned precinct.

UQ ORAL HEALTH CENTRE $120 MILLION

The UQ Oral Health Centre is Australia’s largest and most advanced tertiary oral health facility. As part of the UQ Herston Campus, the facility includes clinical simulation areas, pre-clinical laboratories, lecture/seminar rooms, and research laboratories.

CITYCAT & CITYGLIDER

The CityCat terminal in Teneriffe provides direct connectivity to key destinations, including the Brisbane CBD and University of Queensland, via the Brisbane River CityCat network. In addition, the CityGlider

bus network provides regular bus services between Teneriffe and the Brisbane CBD.

AIRPORTLINKM7 $4.8 BILLION

CLEM JONES TUNNEL (CLEM7) $3.3 BILLION

KINGSFORD SMITH DRIVE $650 MILLION

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Brisbane Level 7, 123 Albert St Brisbane QLD 4000

07 3007 3800

This publication is prepared on the instruction of Pointcorp PCK Holding and is not suitable for use other than by the party to whom it is addressed. As the publication involves projections and assumptions it can be affected by a number of unforeseen variables. The forecasts and assumptions are a prediction and whilst Urbis has made every effort to ensure that the

forecasts and assumptions are based on reasonable information, they may be affected by assumptions that do not necessarily eventuate or by know or unknown risks and uncertainties. It should be noted that past performance is not necessarily a reliable indication of future performance. The information in the publication does not represent financial advice and should

not be regarded as such. It has been prepared without taking into account your financial situation or investment objectives. You should consider the appropriateness of the information in regards to your current financial situation or needs. Urbis accepts no responsibility for the accuracy or completeness of any such material. The information is subject to change without notice and Urbis is under no obligation to update the information or correct any assumptions which may change over time. This study has been prepared for the sole use of Pointcorp

PCK Holding and is not to be relied upon by any third party without specific approval from Urbis. This publication is subject to copyright. Except as permitted under the Copyright Act 1968, no part of it may, in any form or by any means (electronic, mechanical, photocopying, recording or otherwise) be reproduced, stored in a retrievals system or transmitted without prior

written permission. Enquires should be addressed to the publishers. / BPE0942

OUTLOOK - Amazon S3...11 All Hallows’ Secondary School 12 St Joseph’s College 13 Brisbane Boys/...

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