background image
49
The Private Practice
Spring 2013
When looking to invest, buyers should consider three
key factors ­ population, infrastructure and employment.
Jonathan Rivera reports on current trends and reveals
why Brisbane is a property hotspot.
PROPERTY
In the past couple of years, Australia's
residential property market has
revealed a number of trends that only
a correction in the market would make
clear. The major trend identified, and
one that had been largely forgotten,
is the notion of time. Residential
property is historically a long-term
investment class, and those seeking
greater gains in a short timeframe may
need to wait for the cycle to return.
The concept of time and residential
property also identifies a greater
learning, a learning that was not
completely understood in the past and
saw some markets register above-
average growth, and will see markets
in the future outpace others.
The correction in the residential
market emphasises this factor
and shows the importance of
`place superiority' ­ a concept that
demonstrates to developers and
purchasers that focusing on product
alone may no longer sell as it did in
the mid 2000s. Finishes, amenities
and views will no longer compensate
for developments in marginal
locations, and buyers are the first
to vote with their wallets.
Lasting appeal and enduring value
will be the most important motivator
for buyers moving forward and, amid
today's new market demands, those
regions accommodating a unique
formula will dominate the landscape
over time.
At Urbis, we have investigated
the trends that will deliver sustained
and confident growth, now and into
the future. This involves recognising
the key fundamentals that investors
should seek to secure returns, as well
as identifying regions that will be the
most desirable to live, work and play in.
To help identify these locations,
our team has concluded that the
most desirable locations will be those
locations offering `P.I.E.' ­ population,
infrastructure and employment.
POPULATION GROWTH
Healthy and sustained population
growth usually equates to a healthy
and prosperous residential property
market. Look for emerging and
growing regions, and ask yourself
why they are growing.
An easy way to clearly identify
a region with sustained population
growth is to understand the local
employment nodes, increase in
development activity and low vacancy
rates for rental property.
INFRASTRUCTURE
& INVESTMENT
Locations supported by adequate
useable (existing) infrastructure
and amenities are prime areas for
residential development and growth.
Residential developments are more
desirable when infrastructure and
amenities are within walking distance
or transit accessible.
Additional infrastructure and
amenity investment is also as
important, as this supports greater
population growth and employment
opportunity.
EMPLOYMENT
OPPORTUNITIES
& DIVERSITY
Proximity to employment nodes
and centres is fundamental to
strong residential growth. Localities
well supported by employment
generally drive a greater demand for
residential dwellings, particularly
those located within walking distance
of,orreinforcedby,sufficientpublic
transport and accessibility.
Editor's Note: We are extremely
pleased to welcome one of this
country's most regarded and awarded
property developers, Lend Lease,
to our network of education partners.
The three key investment factors
discussed by Jonathan Rivera of
Urbis ­ Population, Infrastructure
and Employment
­ are all supporting
features of the Lend Lease RNA
redevelopment and its first stage,
The Green
­ see the advertisement
at the end of this article for details.