12 - myComplex · BOWEN HILLS, QLD 4006. Appendix One BMT Tax Depreciation Estimate 37 Mayne Road BOWEN HILLS, QLD 4006 BMT Tax Depreciation QUANTITY SURVEYORS Maximising Property

12

Office

Text Box

BMT Tax Depreciation Estimate37 Mayne Road

BOWEN HILLS, QLD 4006

Appendix One

BMT Tax Depreciation Estimate37 Mayne Road

BOWEN HILLS, QLD 4006

BMT Tax DepreciationQUANTITY SURVEYORS

Maximising Property Tax Depreciation Deductions306345

Estimate of Depreciation ClaimableTypical 1 Bedroom Apartment - Type 1B37 Mayne Road, BOWEN HILLS, QLD 4006

MaximumYear Plant &

EquipmentDivision 43 Total

1 7,006 5,792 12,7982 4,797 5,792 10,5893 3,537 5,792 9,3294 2,659 5,792 8,4515 2,212 5,792 8,0046 2,422 5,792 8,2147 1,614 5,792 7,4068 1,102 5,792 6,8949 773 5,792 6,565

10 563 5,792 6,35511 + 3,950 173,709 177,659

Total $30,635 $231,629 $262,264

Comparison Yr 1-10 (Min & Max)

$0

$1,300

$2,600

$3,900

$5,200

$6,500

$7,800

$9,100

$10,400

$11,700

$13,000

1 2 3 4 5 6 7 8 9 10Years

Minimum

MinimumYear Plant &


1 5,732 4,739 10,4712 3,925 4,739 8,6643 2,894 4,739 7,6334 2,175 4,739 6,9145 1,810 4,739 6,5496 1,982 4,739 6,7217 1,320 4,739 6,0598 902 4,739 5,6419 633 4,739 5,372

10 461 4,739 5,20011 + 3,232 142,125 145,357

Total $25,066 $189,515 $214,581

Cumulative Yr 1-10 (Min & Max)

$0

$8,500

$17,000

$25,500

$34,000

$42,500

$51,000

$59,500

$68,000

$76,500

$85,000

1 2 3 4 5 6 7 8 9 10Years

Minimum

* assumes settlement on 1 July in any given year.

This is an estimate only and should not be applied or acted upon. Depreciation of plant is based on the Diminishing Valuemethod of depreciation applying Low-Value Pooling. The Division 43 Write Off Allowance is calculated using 2.5% or 4%depending on the property type and date of construction. This estimate is based upon legislation in force at the date ofreport production.

This Estimate Cannot Be Used For Taxation Purposes

To discuss the contents of this report please contact Bradley Beer at BMT Tax Depreciation on 07 3221 9922


Level 7, 320 Adelaide StreetBrisbane QLD 4001GPO Box 3229Brisbane QLD 4001t 07 3221 9922f 07 3221 9933

e [email protected] www.bmtqs.com.au

Australia Wide Service ABN 44 115 282 392


Estimate of Depreciation ClaimableTypical 1 Bedroom Apartment - Type 1C37 Mayne Road, BOWEN HILLS, QLD 4006

MaximumYear Plant &


1 7,006 5,792 12,7982 4,797 5,792 10,5893 3,537 5,792 9,3294 2,659 5,792 8,4515 2,212 5,792 8,0046 2,422 5,792 8,2147 1,614 5,792 7,4068 1,102 5,792 6,8949 773 5,792 6,565

10 563 5,792 6,35511 + 3,950 173,709 177,659

Total $30,635 $231,629 $262,264


$0

$1,300

$2,600

$3,900

$5,200

$6,500

$7,800

$9,100

$10,400

$11,700

$13,000

1 2 3 4 5 6 7 8 9 10Years

Minimum

MinimumYear Plant &


1 5,732 4,739 10,4712 3,925 4,739 8,6643 2,894 4,739 7,6334 2,175 4,739 6,9145 1,810 4,739 6,5496 1,982 4,739 6,7217 1,320 4,739 6,0598 902 4,739 5,6419 633 4,739 5,372

10 461 4,739 5,20011 + 3,232 142,125 145,357

Total $25,066 $189,515 $214,581


$0

$8,500

$17,000

$25,500

$34,000

$42,500

$51,000

$59,500

$68,000

$76,500

$85,000

1 2 3 4 5 6 7 8 9 10Years

Minimum










Estimate of Depreciation ClaimableTypical 1 Bedroom Apartment - Type 1A37 Mayne Road, BOWEN HILLS, QLD 4006

MaximumYear Plant &


1 6,914 5,875 12,7892 4,716 5,875 10,5913 3,482 5,875 9,3574 2,620 5,875 8,4955 2,185 5,875 8,0606 2,398 5,875 8,2737 1,597 5,875 7,4728 1,088 5,875 6,9639 765 5,875 6,640

10 556 5,875 6,43111 + 3,881 176,248 180,129

Total $30,202 $234,998 $265,200


$0

$1,300

$2,600

$3,900

$5,200

$6,500

$7,800

$9,100

$10,400

$11,700

$13,000

1 2 3 4 5 6 7 8 9 10Years

Minimum

MinimumYear Plant &


1 5,657 4,807 10,4642 3,858 4,807 8,6653 2,849 4,807 7,6564 2,144 4,807 6,9515 1,787 4,807 6,5946 1,962 4,807 6,7697 1,307 4,807 6,1148 890 4,807 5,6979 626 4,807 5,433

10 455 4,807 5,26211 + 3,175 144,203 147,378

Total $24,710 $192,273 $216,983


$0

$8,600

$17,200

$25,800

$34,400

$43,000

$51,600

$60,200

$68,800

$77,400

$86,000

1 2 3 4 5 6 7 8 9 10Years

Minimum










Estimate of Depreciation ClaimableTypical 2 Bedroom Apartment - Type 2C37 Mayne Road, BOWEN HILLS, QLD 4006

MaximumYear Plant &


1 7,783 8,566 16,3492 5,776 8,566 14,3423 4,214 8,566 12,7804 3,145 8,566 11,7115 2,570 8,566 11,1366 2,522 8,566 11,0887 1,933 8,566 10,4998 1,331 8,566 9,8979 946 8,566 9,512

10 696 8,566 9,26211 + 5,135 256,962 262,097

Total $36,051 $342,622 $378,673


$0

$1,700

$3,400

$5,100

$6,800

$8,500

$10,200

$11,900

$13,600

$15,300

$17,000

1 2 3 4 5 6 7 8 9 10Years

Minimum

MinimumYear Plant &


1 6,368 7,008 13,3762 4,726 7,008 11,7343 3,448 7,008 10,4564 2,573 7,008 9,5815 2,102 7,008 9,1106 2,064 7,008 9,0727 1,581 7,008 8,5898 1,089 7,008 8,0979 774 7,008 7,782

10 570 7,008 7,57811 + 4,201 210,242 214,443

Total $29,496 $280,322 $309,818


$0

$11,700

$23,400

$35,100

$46,800

$58,500

$70,200

$81,900

$93,600

$105,300

$117,000

1 2 3 4 5 6 7 8 9 10Years

Minimum










Estimate of Depreciation ClaimableTypical 2 Bedroom Apartment - Type 2B37 Mayne Road, BOWEN HILLS, QLD 4006

MaximumYear Plant &


1 7,783 8,730 16,5132 5,776 8,730 14,5063 4,214 8,730 12,9444 3,145 8,730 11,8755 2,570 8,730 11,3006 2,522 8,730 11,2527 1,933 8,730 10,6638 1,331 8,730 10,0619 946 8,730 9,67610 696 8,730 9,426

11 + 5,135 261,879 267,014

Total $36,051 $349,179 $385,230


$0

$1,700

$3,400

$5,100

$6,800

$8,500

$10,200

$11,900

$13,600

$15,300

$17,000

1 2 3 4 5 6 7 8 9 10Years

Minimum

MinimumYear Plant &


1 6,368 7,142 13,5102 4,726 7,142 11,8683 3,448 7,142 10,5904 2,573 7,142 9,7155 2,102 7,142 9,2446 2,064 7,142 9,2067 1,581 7,142 8,7238 1,089 7,142 8,2319 774 7,142 7,916

10 570 7,142 7,71211 + 4,201 214,265 218,466

Total $29,496 $285,685 $315,181


$0

$11,900

$23,800

$35,700

$47,600

$59,500

$71,400

$83,300

$95,200

$107,100

$119,000

1 2 3 4 5 6 7 8 9 10Years

Minimum










Estimate of Depreciation ClaimableTypical 2 Bedroom Apartment - Type 2A37 Mayne Road, BOWEN HILLS, QLD 4006

MaximumYear Plant &


1 7,783 8,852 16,6352 5,776 8,852 14,6283 4,214 8,852 13,0664 3,145 8,852 11,9975 2,570 8,852 11,4226 2,522 8,852 11,3747 1,933 8,852 10,7858 1,331 8,852 10,1839 946 8,852 9,79810 696 8,852 9,548

11 + 5,135 265,575 270,710

Total $36,051 $354,095 $390,146


$0

$1,700

$3,400

$5,100

$6,800

$8,500

$10,200

$11,900

$13,600

$15,300

$17,000

1 2 3 4 5 6 7 8 9 10Years

Minimum

MinimumYear Plant &


1 6,368 7,242 13,6102 4,726 7,242 11,9683 3,448 7,242 10,6904 2,573 7,242 9,8155 2,102 7,242 9,3446 2,064 7,242 9,3067 1,581 7,242 8,8238 1,089 7,242 8,3319 774 7,242 8,016

10 570 7,242 7,81211 + 4,201 217,289 221,490

Total $29,496 $289,709 $319,205


$0

$12,000

$24,000

$36,000

$48,000

$60,000

$72,000

$84,000

$96,000

$108,000

$120,000

1 2 3 4 5 6 7 8 9 10Years

Minimum










13

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ACCESSIBILITY & WALKABILITYConvenience to amenity paired with major public transport infrastructure and vehicle connectivity positions Bowen Hills favourably as a prominent inner city location for urban living / Pg 02

INFRASTRUCTURE INVESTMENT

over $13.5 billion of infrastructure either recently completed or under construction / Pg 04

EDUCATION AND EMPLOYMENTBowen Hills is an emerging employment precinct,

RESIDENTIAL APARTMENT MARKETAffordability remains a key driver for investors in the Brisbane LGA apartment market / Pg 09

RENTAL MARKETNew rental stock continues to outperform

Catchment / Pg 10

MARKET INDICATOR COMPARISONComparative analysis of the Bowen Hills catchment to suburbs of Inner Brisbane and

affordability / Pg 11

B

D

A

C

E

F

A CONTEXT ON BUSINESS, CULTURE, LIFESTYLE AND RESIDENTIAL

Bowen Hills location and proximity to established and emerging commercial, retail and amenity precincts is key to continuing its growth as one of Brisbane’s evolving inner city locations for urban living.

APRIL 2014OUTLOOK BOWEN HILLS

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

1 POP 2 INF 3 EMP

GASWORKS & NEWSTEAD RIVERPARK

INFRASTRUCTURE INVESTMENT RETAIL & DINING

PROXIMITY TO AMENITY AND TRANSPORT INFRASTRUCTURE POSITIONS BOWEN HILLS FAVOURABLY AS A PROMINENT LOCATION FOR URBAN LIVING

BOWEN HILLS IS WELL POSITIONED TO CAPITALISE ON A SHIFTING YOUTHFUL POPULATION

BOWEN HILLS IS CENTRALLY LOCATED WITH CLOSE PROXIMITY TO RESIDENTIAL COMMERCIAL ENTERTAINMENT AND LEISURE DESTINATIONS

9

13

11

12

10

17

BRISBANE CBD

TENERIFFE

FORTITUDE VALLEY

21

20

15

Bowen Hills is among the most accessible and liveable suburbs in Brisbane.

Broad urban investment from public and private enterprises has enabled Bowen Hills to establish residential dwelling growth beyond many other inner Brisbane suburbs in recent times. Bowen Hills is within walking distance to the vibrant Newstead Gasworks, Chinatown and Fortitude Valley

Entertainment precinct as well as lifestyle precinct of James Street and the Fortitude Valley Emporium. This convenience to amenity paired with major public transport infrastructure and vehicle connectivity positions Bowen Hills favourably as a prominent inner city location for urban living.

2 URBIS BOWEN HILLS OUTLOOK© URBIS.COM.AU

ACCESSIBILITY & WALKABILITYBowen Hills

Reta

il &

Ent

erta

inm

ent

Hea

lthPa

rks

Educ

atio

n

18

18

Brisbane Botanic Gardens

Victoria Park Golf Complex

Centennial Park and Pool Complex

Royal Brisbane Hospital

Mater Hospital

19

19

Infra

struc

ture

/ Em

ploy

men

t

4

2

5

3

6

1

1

8

8

9

7

7

13

11

14

14

12

16

16

15 QUT – Gardens Point

QUT – Kelvin Grove

University of Queensland

Brisbane Boys & Girls Grammar School

10

RNA Showgrounds

Showground Hill Development

Newstead Riverpark & Gasworks

Chinatown/Brunswick Street Mall

Valley Metro Shopping Centre

James Street Retail Precinct

Emporium Dining Precinct

Suncorp Stadium

Airportlink M7

Northern Busway

Inner City Bypass

Clem7

Brisbane Airport

Australia Trade Coast

17

21

22

22

20

NEWSTEAD

BOWEN HILLS

23

23

4

2

3

5

6

BuswayWalking/Bike Path

© URBIS.COM.AUURBIS BOWEN HILLS OUTLOOK 3

RNA Showgrounds $2.9 BILLION

The RNA Showgrounds will be one of Brisbane’s most significant regeneration projects. Staged over a development period of 15 years, the precinct at completion will offer a wide range of uses including open space, retail, commercial office, and hotel accommodation.

Royal Brisbane Hospital 929 BEDS

The Royal Brisbane and Women’s Hospital is the largest tertiary referral hospital in Queensland. Encompassing 53 buildings covering 17.7 hectares, the site employs more than 7,450 staff where over 90,000 people are admitted every year.

Newstead Riverpark & GasworksLocated within 2km from the Brisbane CBD, Newstead Riverpark and Gasworks is a 17 hectare urban renewal precinct providing an eclectic new village style community of retail, commercial and civic space, parkland, river walkways and bicycle paths.

INFRASTRUCTUREINVESTMENT


3

TRANSAPEX MASTER PLAN - STATE OF THE ART ROAD NETWORK SYSTEM

Residents of Bowen Hills are in proximity to a number of entry and exit points within the TransApex road network, a multibillion dollar tunnel project which enables reduced travel times to the CBD, the Airport and south of the Brisbane River. The plan is the biggest urban road network proposal in Australia.

At completion, all infrastructure objectives will connect, creating a highly sophisticated road system. Incorporating the Inner City Bypass, the Clem 7 Tunnel, the Go Between Bridge, Legacy Way and Airport Link.

Clem7 Tunnel $3 BILLIONThe Clem7 tunnel motorway links major Brisbane roads including the Pacific Motorway, Ipswich Road, Inner City Bypass and Airportlink. The Clem7 bypasses 24 existing traffic lights, saving around 15 minutes of travel time and provides an uninterrupted route across the Brisbane River.

Airportlink $4.8 BILLIONAirportlink is Australia’s largest privately funded infrastructure project and was built to relieve congestion in Brisbane’s northern suburbs and improve public

transport. It now provides Bowen Hills with increased connectivity to the Clem7 Tunnel, the Inner City Bypass, northern arterials and the International and Domestic Airports.

Go Between Bridge $338 MILLIONThe Go Between Bridge is a four-lane toll bridge with additional walking and cycling paths that connect the city to West End. The Go Between Bridge gives easy access to Brisbane’s popular venues like South Bank, the Gallery of Modern Art, Suncorp Stadium, Caxton Street and Park Road.

KEY INFRASTRUCTURE

10 minutes

AUSTRALIA TRADE COAST

25 minutes

PORT OF BRISBANE

15 minutes

BRISBANE AIRPORT

55 minutes

GOLD COAST

60 minutes

SUNSHINE COAST

Over $13.5 billion of recent or under construction infrastructure

TRAVEL TIME, BOWEN HILLS TO:

VICTORIA PARK

SPRING HILL

BRISBANE CBD

NEW FARM

TENERIFFE

NEWSTEAD

BOWEN HILLS

FORTITUDE VALLEY

HERSTON

Train StationsTransapex Bus Stations Ferry Terminals

Queensland Univerity of Technology – Kelvin Grove

Queensland Univerity of Technology – Gardens Point

University Of Queensland – St. Lucia

RNA Showground

Royal Brisbane Hospital

Newstead Gasworks

Green Square

Tatts Headquarters

Bank of Queensland Headquarters

Gasometer 1

8

24

25

9

10

11

12

13

21

22

23


Clem7

Airportlink M7

Go Between Bridge

Inner City Bypass

4

5

6

7

3

4

5

6

7

8

9

10

1112

1324

25

21

22

23

TRA

NSA

PEX

EDU

CA

TIO

NA

MEN

ITY

CO

MM

ERC

IAL

KEY EMPLOYMENT PRECINCTS

Bowen Hills will be in the centre of around 205,000 proposed

new jobs by 2031

The Bowen Hills Catchment is well connected Brisbane’s largest universities, representing

over 90,000 students within 5kms

KEY EMPLOYERS - COMMERCIAL

EMPLOYMENT NODES

In 2013, over 75,553 international students enrolled in higher education throughout Brisbane, generating $5.1 billion and supporting 20,000 local jobs. Research undertaken by Brisbane Marketing has revealed that each international student injects roughly $70,000 into the Brisbane economy, with approximately 35 per cent invested in tuition and 65 per cent spent on living expenses which has led to private and public initiatives to improve quality of amenities,

as forging international connections for Brisbane.

QUEENSLAND UNIVERSITY OF TECHNOLOGY

Gardens Point & Kelvin Grove Campus40,000 STUDENTS

UNIVERSITY OF QUEENSLAND

St Lucia Campus46,000 STUDENTS

GRIFFITH UNIVERSITY

South Bank Campus3,300 STUDENTS

SOUTHBANK INSTITUTE OF TECHNOLOGY

30,000 STUDENTS

Prepared by Urbis;

Bowen Hills is an emerging employment

as many leading companies see the value of positioning businesses in such close proximity of the city. Further growth of the precinct as

catalyst, being a major driver for the local residential markets.

In addition to the 22,211 anticipated employment opportunities within the suburb by 2031, Bowen Hills is located in the centre of a number of key employment nodes. Combined, these employment nodes equate to over 205,000 new jobs between 2012 and 2031.

Bowen HillsCURRENT / 2031 FORECAST / 22,211 TOTAL NEW JOBS / 12,604

Fortitude Valley CURRENT / 2031 FORECAST / TOTAL NEW JOBS / 13,493

Brisbane CBD CURRENT / 2031 FORECAST / 222,178TOTAL NEW JOBS / 65,633

Spring Hill CURRENT / 2031 FORECAST / 23,008 TOTAL NEW JOBS / 3,398

Kelvin Grove CURRENT / 4,210 2031 FORECAST / TOTAL NEW JOBS / 1,464

Herston CURRENT / 11,577 2031 FORECAST / 19,177 TOTAL NEW JOBS / 7,600

Newstead CURRENT / 5,544 2031 FORECAST / 57,287TOTAL NEW JOBS / 51,743

Australia Trade CoastCURRENT / 2031 FORECAST / 110,000 TOTAL NEW JOBS / 50,000

TOTAL CURRENT / 285,962

2031 FORECAST / 491,897 TOTAL NEW JOBS / 205,935

BANK OF QUEENSLAND HQ

UNDER CONSTRUCTION 23,400 SQM / 1,400 EMPLOYEES

ENERGEX HQ

COMPLETE

TATTS GROUP HQ

PROPOSED 20,000 SQM / 1,300 EMPLOYEES

GASOMETER 1

COMPLETE 9,100 SQM / 1,000 EMPLOYEES


EMPLOYMENT

EDUCATION

Bowen Hills is well positioned to capitalise on a shifting youthful population

BOWEN HILLS POPULATION

Population projections for the Queensland Government reveal that the population within the Bowen hills Catchment will increase by approximately 14,4000 new residents by 2031, equating to 280 new residents per annum.

This population growth, historic and forecast, as well as exceptional connectivity and large scale infrastructure investment bode well for the continued growth and demand for residential dwellings in the Bowen Hills Catchment.

WHO LIVES IN BOWEN HILLS?

WHO LIVES IN BOWEN HILLS - KEY STATS

MEDIAN AGE OF BOWEN HILLS

RESIDENTS IS

32 YEARS

34 YEARS

25% OF BOWEN HILLS

RESIDENTS ARE MARRIED

45%

38% OF BOWEN HILLS RESIDENTS ARE

EMPLOYED AS PROFESSIONALS

29%

20% OF BOWEN HILLS

RESIDENTS

WALK TO WORK

4%

OF BOWEN HILLS ARE

COUPLE FAMILIES WITHOUT CHILDREN

38%

11% OF BOWEN HILLS

OCCUPIED PRIVATE DWELLINGS ARE

OWNED OUTRIGHT

28%

MEDIAN WEEKLY HOUSEHOLD INCOME

BOWEN HILLS

$1,547

59% OF BOWEN HILLS

WORK MORE THAN 40 HOURSPER WEEK

51%

DEMOGRAPHIC SNAPSHOT

Population growth for South East Queensland remains above the state and national annual rate of growth. Australia’s two largest demographic age groups will be the primary driver

and Baby Boomers move into new phases of their dwelling

continued urbanisation to counter the rising cost of living.

The Bowen Hills Catchment is well placed to capitalise on these demographic changes, offering an ideal location in close proximity to major employment precincts and social hubs, while also delivering the promise of exceptional accessibility to vehicular and pedestrian corridors providing the catalyst for the 56.8 per cent of the Bowen Hills Catchment aged between 20 and 34 years, markedly 30.9 per cent greater proportion than the greater Brisbane LGA population.

BOWEN HILLS/FORTITUDE VALLEY POPULATION PROJECTIONS

POPU

LATI

ON

11,199

Forecast

0

2,000

4,000

6,000

8,000

10,000

12,000

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

YEAR

Projected 280 new residents per annum

BOWEN HILLS CATCHMENT AGE DISTRIBUTION

00-

04

05-

09

10-

14

15-

19

20-

24

25-

29

30-

34

35-

39

40-

44

45-

49

50-

54

55-

59

60-

64

65-

69

70-

74

75-

79

80-

84

85+

BRISBANE LGABOWEN HILLS CATCHMENT

5.0%

0%

10.0%

15.0%

20.0%

25.0%

AGE DISTRIBUTION

PRO

PORT

ION

OF

POPU

LATI

ON

(%) 57 per cent of Bowen Hills

population aged between 20 and 34


RESIDENTIAL MARKET

CAPITAL CITIES MARKETS COMPARISION

An analysis of major capital cities for the December quarter

apartment market. When it comes to density living, Brisbane is more affordable, with the median price being $57,000 and $142,000 more affordable than Melbourne and Sydney which recorded median prices of $465,000 and $550,000 respectively.

In the twelve month period to December 2013, the Melbourne SD and Sydney SD apartment markets recorded steep median price increases of 9.4 and 12.2 per cent. Compared to the Brisbane LGA apartment market which registered a steady 4.3 per cent median price increase. Brisbane is now the most affordable major capital city for investment, prompting interstate and overseas investors to show greater interest in the Brisbane investment market.

From a rental return aspect, Brisbane apartments are recording the highest return for investors registering an indicative 5.2 per cent for gross rental yield. Compared to the Sydney and Melbourne markets yielding 4.7 per cent and 4.3 per cent respectively. Whilst this takes into account all stock transacted, not just new stock to market, these measures are valid indicators for increased investor demand in Brisbane.

BRISBANE APARTMENT INSIGHTS — ON-THE-MARKET SALES

Urbis provide an independent survey and analysis on the sale of new apartments within Brisbane’s Inner City. The following results have been produced from the December 2013 Brisbane Apartment Insights report.

1,179 SALES OVER THE 4TH QTR 2013

411SALES MORE THAN THE 3RD QTR 2013

$537, 150WEIGHTED AVERAGE SALE PRICE

477 SALES OVER THE 4TH QTR 2013

118SALES MORE THAN THE 3RD QTR 2013

$537, 136WEIGHTED AVERAGE SALE PRICE

CAPITAL CITY COMPARISON - DECEMBER 2013

CAPITAL CITIES APARTMENT SALES CYCLE

BRISBANE LGA MEDIAN PRICE MELBOURNE SD MEDIAN PRICE SYDNEY SD MEDIAN PRICE

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

$550,000

$600,000

Dec

-93

Dec

-94

Dec

-95

Dec

-96

Dec

-97

Dec

-98

Dec

-99

Dec

-00

Dec

-01

Dec

-02

Dec

-03

Dec

-04

Dec

-05

Dec

-06

Dec

-07

Dec

-08

Dec

-09

Dec

-10

Dec

-11

Dec

-12

Dec

-13

MED

IAN

SA

LE P

RIC

E ($

)

PERIOD (QUARTERLY)

Brisbane offers the best mix of apartment affordability and rental

return across major capital cities

Affordability return to Brisbane LGA market


INNER BRISBANE APARTMENT INSIGHTS

INNER NORTH APARTMENT INSIGHTS

MEDIAN SALE PRICE

INDICATIVE GROSS RENTAL YIELD

BRISBANE

SYDNEY

MELBOURNE

$408,000

$550,000

$465,000

5.1%

4.7%

4.3%

PERIOD (HALF YEAR)

MED

IAN

SALE PRIC

E ($)

NU

MBE

R O

F TR

AN

SAC

TIO

NS

NUMBER OF UNIT SALESMEDIAN UNIT SALE PRICE

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

9,000

Dec

-83

Dec

-84

Dec

-85

Dec

-86

Dec

-87

Dec

-88

Dec

-89

Dec

-90

Dec

-91

Dec

-92

Dec

-93

Dec

-94

Dec

-95

Dec

-96

Dec

-97

Dec

-98

Dec

-99

Dec

-00

Dec

-01

Dec

-02

Dec

-03

Dec

-04

Dec

-05

Dec

-06

Dec

-07

Dec

-08

Dec

-09

Dec

-10

Dec

-11

Dec

-12

Dec

-13

$408,000

$446,500

$0

$100,000

$200,000

$300,000

$400,000

$500,000

$600,000

0

100

200

300

400

500

600

700

PERIOD (HALF YEAR)

MED

IAN

SALE PRIC

E ($)

NU

MBE

R O

F TR

AN

SAC

TIO

NS

NUMBER OF UNIT SALESMEDIAN UNIT SALE PRICE

Dec

-83

Dec

-84

Dec

-85

Dec

-86

Dec

-87

Dec

-88

Dec

-89

Dec

-90

Dec

-91

Dec

-92

Dec

-93

Dec

-94

Dec

-95

Dec

-96

Dec

-97

Dec

-98

Dec

-99

Dec

-00

Dec

-01

Dec

-02

Dec

-03

Dec

-04

Dec

-05

Dec

-06

Dec

-07

Dec

-08

Dec

-09

Dec

-10

Dec

-11

Dec

-12

Dec

-13


BRISBANE LGA — APARTMENT SALES CYCLE BOWEN HILLS CATCHMENT - APARTMENT SALES CYCLE

BRISBANE LGA APARTMENT MARKET SALES ANALYSIS

Data collated from the RP Data Suburb Scorecard for December 2013 indicates that the Brisbane apartment market has shown strength in key investment criteria. It must be noted that affordability of the apartment market is not the only driver supporting the recent demand for this type of dwelling.

The shifting age demographic, with emphasis placed on urbanisation, work life balance, and proximity to amenity and infrastructure continue to promote future demand. The Brisbane market is already experiencing the beginning of this shift – a desire for accommodation to maximise liveability whilst minimising living expense.

Market activity growth is expected to continue in 2014 following from the strong 2013 fourth quarter, with increased

investors, with continued population growth and string yields providing solid investment fundamentals.

BOWEN HILLS CATCHMENT APARTMENT MARKET SALES CYCLE

The Bowen Hills Catchment is dominated by high and medium density apartment product, with very few separate house dwellings available. Bowen Hills Catchment median apartment sale price closed the period ending December 2013 at $446,500 resulting from a total of 273 settled transactions.

uncertainty spurred by the Global Financial Crisis, the Bowen Hills Catchment has shown some resilience with continued rejuvenation of the area paired with the increased demand for residency in the area.

The Bowen Hills Catchment apartment sales cycle has registered annual capital growth of 4.3 per cent per annum for apartments in the ten year period since December 2003. For potential investors, the capital growth paired with the regions strong gross rental yield of 5.2 per cent is likely to drive the potential investment opportunity offered within the Bowen Hills Catchment.

Affordability remains a key driver for investors in the Brisbane LGA apartment market

RESIDENTIAL MARKET

NEW APARTMENT PRODUCT VS. EXISTING

VACANCY RATE – INNER BRISBANE

RENTAL YIELD – BOWEN HILLS APARTMENTS

RTA WEEKLY APARTMENT RENTAL – BOWEN HILLS POSTCODE

ONE BED TWO BED

BOWEN HILLS CATCHMENT

BRISBANE LGA

PREMIUM

$315

$360

12.5%

$400

$490

22.5%

New rental stock continues to outperform existing rental stock in the Bowen Hills Catchment

TWO BED

ONE BED

RTA POSTCODE

NEW PRODUCT - BOWEN HILLS

CATCHMENT

PREMIUM$360

$410

11% PREMIUM

RTA POSTCODE

NEW PRODUCT - BOWEN HILLS

CATCHMENT

$490

$550

2.4%

4.4%

1.4-2.5% VACANCY RATE

2010 2013

VACANCY RATE

INDICATIVE GROSS RENTAL YIELD

- DECEMBER QUARTER 2013

BOWEN HILLS CATCHMENT RENTAL OVERVIEW

The Bowen Hills Catchment is showing strong demand for rental properties with on the market data recording limited apartments available for rent. New and near new apartments are recording premiums over existing stock while median weekly rents have shown continued long term growth.

According to the Rental Tenancy Authority (RTA), the 4006 postcode (Bowen Hills, Fortitude Valley, Newstead and Herston) recorded on average 278 new or renewal bond lodgements per quarter over the last 12 month period for one bedroom apartments and 248 for two bedroom apartments over the same period to December 2013. The number of new or renewal bonds being lodged per quarter indicates that future supply of apartments will be well received, particularly when not all new apartments are for investment purposes.

One bedroom apartments in the Bowen Hills Catchment have registered an increase of 4.6 per cent per annum increasing median weekly rent to $360 in the ten year period to March 2013.

According to the RTA, median weekly rents for two bedroom apartments in the postcode have increased annually by 6.1 per cent to register a current median rent of $490 per week.

On the market rental data recording new and near new apartment product, has revealed that all apartments in the Bowen Hills Catchment are attracting a premium over existing stock. New and near new one bedroom apartments are renting for approximately $70 per week more than existing stock, whilst new and near new two bedroom apartments are achieving a premium of approximately $60 per week over the existing stock.

RENTAL MARKET ANALYSIS


MEDIAN RENT — APARTMENT

MEDIAN PRICE COMPARISON

1 BED

2 BED


$915 WEEKLY

PERSONAL INCOME

$360

$490

MEDIAN WEEKLY RENT

1 BED

2 BED

INNER* BRISBANE

$858 WEEKLY

PERSONAL INCOME

$355

$480

1 BED

2 BED

INNER SYDNEY**

WEEKLY

PERSONAL INCOME

$490

$620

$405,000

$713,750

$467,500

$765,000 $656,500

$1,299,500

$0

$200,000

$400,000

$600,000

$800,000

$1,000,000

$1,200,000

$1,400,000

Unit House

MED

IAN

SA

LE

DWELLING

BOWEN HILLS CATCHMENTINNER BRISBANE*INNER SYDNEY**

$360

$490

$355

$480 $490

$620

$0

$100

$200

$300

$400

$500

$600

$700

One Bed Unit Two Bed Unit

MED

IAN

WEE

KLY

REN

T

DWELLING

BOWEN HILLS CATCHMENTINNER BRISBANE*INNER SYDNEY**

ECONOMIC WELLBEINGThe economic wellbeing of Inner Brisbane and Bowen Hills Catchment residents is outperforming the markets and residents of Inner Sydney. From information gathered through the 2011 Census, residents in the Bowen Hills Catchment are generally better placed economically than both, the further residents of Inner Brisbane as well as population of Sydney’s inner suburbs.

Based on averages taken from the Inner Brisbane and Inner Sydney City catchments, the average resident will earn $858 and $862 per week respectively whereas the average resident of the Bowen Hills Catchment will earn $915 per week.

When taking into account the average weekly income from a rental capacity, the Inner Sydney median rents leave the least amount of disposable income of $372 for one-bedroom and $242 for two-bedroom rentals. The Bowen Hills Catchment provided the best rental opportunity for one and two bedroom apartments with $555 and $425 of the average income remaining.

MEDIAN PRICE MARKETAnalysis of the Bowen Hills Catchment with relation to the Inner Brisbane and Inner Sydney residential markets identify the comparable affordability currently witnessed in the Queensland market. The Inner Brisbane house markets have recorded 41 per cent cheaper rents than the Inner Sydney market at the end of January 2013.

When it comes to higher density living, Inner Brisbane is comparably more affordable than Inner Sydney which closed January 2014 with a 28 per cent premium on median unit sales closing $189,000 higher than the Inner Brisbane market. The Bowen Hills Catchment, despite returning healthy rental returns have also registered competitive median pricing to the Inner Brisbane sales recording $62,500 and $51,250 more affordable product for both unit and house market.

MEDIAN WEEKLY RENT & PERSONAL INCOME

WEEKLY INCOME COMPARISON


MARKET INDICATOR COMPARISION

AVERAGE WEEKLY HOUSHOLD INCOME

AVERAGE WEEKLY INDIVIDUAL INCOME


INNER BRISBANE*

INNER SYDNEY**

$1,805

$1,762

$1,804

$915

$858$862

2011 CENSUS

Brisbane Level 7, 123 Albert St Brisbane QLD 4000

07 3007 3800

This publication is prepared on the instruction of Arden Properties 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 effect 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 Arden Properties 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.

www.bis.com.au

Residential Market & Economic Profile

Bowen Hills Market

Res Market & EO_Bowen Hills Market.indd 1 30/4/14 10:29:32 AM

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QUEENSLAND MARKET OVERVIEWEconomy Growth in the Queensland economy has been soft over 2012/13 and 2013/14, due largely to declines in public and business investment. In particular, mining investment—both direct investment in coal and minerals mines, refineries, oil and gas facilities and LNG plants, and associated infrastructure, such as railways, harbours, and electricity infrastructure—peaked in 2012/13 and is now experiencing a long, but an expected orderly decline that is creating a drag on growth in the economy.

However, it should be noted that much of the investment included a significant imported content. This means that, while the state did not benefit fully from the rise in investment, there will also be less of a negative impact on the economy and employment as these projects are progressively completed. At the same time, economic growth will benefit from increased exports as the increased capacity from these mining investments comes on stream.

An upturn in new dwelling construction also appears to be coming through, led by the apartment sector, with new housing construction anticipated to follow.

Consequently, Queensland’s economy is on track to begin to strengthen from 2014/15, as output comes on-stream from the coal and LNG investments and exports increase. This will be supplemented by rising dwelling investment and the impact of an expected lower Australian dollar that should boost the state’s tourism and education exports and agricultural industries.

Brisbane housing market and demographicsThe underlying demand for new dwellings in Queensland typically follows population growth (Chart 1). However, there has not been a commensurate increase in new dwelling construction since 2011 in line with the recovery in population growth and underlying demand. As a result, BIS Shrapnel estimates an underlying shortfall of 24,500 dwellings at June 2014, or around two thirds of a year’s underlying demand, with much of this shortfall located in Brisbane.

At the same time, weak price growth has seen housing affordabilty in Bribsane improve, with affordability estimated to be around 2002 levels (Chart 2). These factors are expected to combine to maintain the momentum in the emerging recovery in both prices and construction in the Brisbane market over 2014/15.

Brisbane benefits from a combination of high net overseas migration inflows, as well as net interstate migration flows from the other states. As a result, the rate of population growth in Brisbane is projected by the Australian Bureau of Statistics (under its medium growth scenario) to grow by 2.1% per annum in the ten years to 2023, compared to 1.7% nationally. This translates to a total rise in population of 23%, or over 500,000 persons over the next decade.

Population growth is projected to be strongest in the 20–39 year old age group and the 60+ year old age group (Chart 3). These two cohorts represent key occupier age groups for apartments, with 20–39 year olds occupying both as renters and owner occupiers, and 60+ year olds being downsizing owner occupiers.


3

!

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!

0

20,000

40,000

60,000

80,000

100,000

120,000

-20,000

-10,000

0

10,000

20,000

30,000

40,000

50,000

60,00020

00

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

e

Dwelling deficiency Underlying demand

Dwelling completions Population growth (RHS)

Dwellings Population growth (persons)

Source: ABS, BIS Shrapnel

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

e

Sydney

Melbourne

Brisbane

Brisbane affordabilty at 2002

levels

Mortgage repayment as a % of median income

Source: ABS, REIA, RBA, BIS Shrapnel

!

!

!

!

0

20,000

40,000

60,000

80,000

100,000

120,000

-20,000

-10,000

0

10,000

20,000

30,000

40,000

50,000

60,00020

00

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

e

Dwelling deficiency Underlying demand

Dwelling completions Population growth (RHS)

Dwellings Population growth (persons)


10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

e

Sydney

Melbourne

Brisbane

Brisbane affordabilty at 2002

levels

Mortgage repayment as a % of median income

Source: ABS, REIA, RBA, BIS Shrapnel

!

!

!

!

! !

80,000

90,000

100,000

110,000

120,000

130,000

140,000

150,000

0-19 20-39 40-59 60+

Persons

Age range (years)Source: ABS, BIS Shrapnel

20,000

25,000

30,000

35,000

40,000

45,000

50,000

55,000

60,000

65,000

70,000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013

Students

Source: Australian Education International

}CHART 1: Population growth, underlying demand, supply and dwelling deficiency, Queensland.

}CHART 2: Housing affordabilty – mortgage repayments as % of household disposable income.

}CHART 3: Growth in Brisbane population by age 2013 – 2023.


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INNER BRISBANE APARTMENT MARKETDemand fundamentals

A profile of inner Brisbane apartment occupants suggests that occupier demand fits predominantly into three key demographic groups:

›Students – predominantly tertiary students and largely overseas students;

›Young adults – who are likely to be working in or around the inner city area; and

›Empty nesters – who are typically aged in their late 50s or older and who, without children in the family home any more, have downsized from their

detached house.

The rental market is dominated by the student market and young adults.

Overseas student course commencements are trending upwards after falling over 2009 – 2012 as tightened student visa requirements and the rising Australian dollar impacted demand. A recovery is now emerging due to strong economic growth in the main source countries of south east and northern Asia, as well as a lower Australian dollar (Chart 4).

Rental demand from young adults in inner Brisbane is linked to employment growth, as getting a job will facilitate the move into a rental dwelling. Employment growth in Queensland has been recovering since slowing over 2011 – 2013 when weaker employment conditions were exacerbated by cuts to public sector employment by the State Government. With these now having worked through employment growth has been trending upwards since mid 2013, and this will have a positive impact on rental demand (Chart 5).

Consequently, rental demand (as indicated by the growth in the number of rental bonds held) is also picking up from a brief setback in 2013 (after steady rises over 2010 to 2012), with demand beginning to accelerate as both overseas student numbers rise and employment growth continues (Chart 6).

Over the next decade, sustained growth in overseas student numbers and the key demographic 20 – 39 year old and 60+ year old age cohorts will underwrite the occupancy of inner Brisbane apartments.

Owner occupiers are roughly evenly split between young adults and empty nesters. Owner occupier demand from young adults is expected to continue to increase based on the rising pool of inner city renters who have had a taste of the “inner city lifestyle” and are likely to stay as owner occupiers based on the level of amenity offered.

At the same time, empty nester demand is also likely to increase. Owner occupier demand from downsizing empty nesters is expected to increase based both on accelerating growth in the 60+ year old age cohort, as well as the potential for the incidence of downsizing increasing within this age cohort.


5

20,000

25,000

30,000

35,000

40,000

45,000

50,000

55,000

60,000

65,000

70,000

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Students

Source: Australian Education International

-0.1

0.4

0.9

1.4

1.9

2.4

2,160

2,180

2,200

2,220

2,240

2,260

2,280

2,300

2,320

Aug

-10

Nov

-10

Feb-

11

May

-11

Aug

-11

Nov

-11

Feb-

12

May

-12

Aug

-12

Nov

-12

Feb-

13

May

-13

Aug

-13

Nov

-13

Feb-

14

Employed persons (moving annual average)

% annual employment growth (RHS)

Employed persons ('000s) Annual employment growth (%)


23,000

23,500

24,000

24,500

25,000

25,500

26,000

26,500

27,000

Sep

-10

Dec

-10

Mar

-11

Jun-

11

Sep

-11

Dec

-11

Mar

-12

Jun-

12

Sep

-12

Dec

-12

Mar

-13

Jun-

13

Sep

-13

Dec

-13

Mar

-14

Number of rental bonds held

Source: Rental Tenancies Authority

}CHART 4: Overseas student commencements, Qld.

}CHART 5: Annual employment growth, Queensland.

}CHART 6: Growth in rental bonds held, Inner Brisbane.


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Outlook Compared to the Sydney residential market, where the uptun in new dwelling activity is well underway, and the Melbourne market, where new dwelling starts are coming from record highs, the upturn in new dwelling activity in Brisbane is only just beginning, with a rise in new dwelling starts being recorded over calendar 2013 after a sustained weak period since last peaking in 2007 (Chart 7). The rising underlying dwelling deficiency, combined with improved affordabilty due to low interest rates, should maintain the momentum in the emerging upturn, translating to greater new dwelling activity and price growth.

The apartment sector in particular is expected to be buoyed by the investment fundamentals currently offered. As well as offering higher yields which have remained steady over the last twelve months (compared to declinces in Sydney and Melbourne), the Brisbane apartment market also offers a lower price point for investors (Chart 8). In addition to the consequent stronger local demand, interstate investor demand for Brisbane apartments is also likely to increase given its value proposition compared to the other eastern state markets.

!

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5,000

7,000

9,000

11,000

13,000

15,000

17,000

19,000

21,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Sydney Melbourne Brisbane

Dwellings - Sydney, Melbourne Dwellings - Brisbane


3.00

3.50

4.00

4.50

5.00

5.50

Brisbane Sydney Melbourne

As at Dec 2012

As at Dec 2013

Median $385,000 $542,000 $505,000

Indicative yield (%)

Source: Real Estate Institute of Australia, BIS Shrapnel

}CHART 7: New dwelling construction cycle, Brisbane Sydney and Melbourne (dwelling starts).

!

!

!

!

!

!

! !

5,000

7,000

9,000

11,000

13,000

15,000

17,000

19,000

21,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

Sydney Melbourne Brisbane

Dwellings - Sydney, Melbourne Dwellings - Brisbane


3.00

3.50

4.00

4.50

5.00

5.50

Brisbane Sydney Melbourne

As at Dec 2012

As at Dec 2013

Median $385,000 $542,000 $505,000

Indicative yield (%)

Source: Real Estate Institute of Australia, BIS Shrapnel

}CHART 8: Median unit prices and yields, Brisbane, Sydney and Melbourne, Dec 2013 quarter.


7

BOWEN HILLS MARKET PROFILE

KEY POINTS◗The Bowen Hills Region is well located, being in close proximity to the major employment centre of

Brisbane CBD, while also having a sizeable employment base itself. The employment sectors servicing the region are expected to experience outperforming employment growth.

◗The Bowen Hills Region has a high prevalence of population in the key 25 – 44 year old demographic group, which contributes to rental demand and a source of potential demand of future owner occupiers.

◗Residents in the Bowen Hills Region are most likely to be employed as managers or in professional employment and earn higher incomes, although the range of employment is wider than the inner city regions of Brisbane, Sydney and Melbourne.

◗The strong public transport linkages of the Bowen Hills Region, together with its own employment base and location close to the Brisbane CBD is an attraction, with a high share of workers taking public transport to work, as well as walking and cycling.

LocationThe Bowen Hills Region is defined as post code 4006 and comprises the suburbs of Bowen Hills, Newstead,

Herston, and Fortitude Valley.

The Bowen Hills Region is well located adjacent to the Bisbane Central Business District and in a line between Brisbane CBD and Brisbane airport.

As a result, the Region benefits from a strong employment base. When including city fringe areas south west of the CBD in Milton and South Brisbane, the Central Brisbane to Airport corridor employes approximately 375,000 persons, or around 40% of the Metropolitan Brisbane total.

Compared to total Metropolitan Brisbane, the corridor has a higher prevalence of employment particularly in the finance, insurance and business services sector, reflecting employment in the Brisbane CBD, and in the wholesale, transport and telecommunications sector, which reflects the employment base around Brisbane Airport. Both of these sectors are likely to experience outperforming employment growth, which in turn will lead to increased employment in the corridor (Chart 9).!

!

!

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0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0

Manufacuring/Utilities

Construction/Primary Industry

Wholesale/Transport/ Telecoms

Household & consumer services

Finance, Insurance and businessservcies

Public sector

Brisbane-Airport corridor

Metropolitan Brisbane

Source: Australian Bureau of Statistics

0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0

0-14 years

15-19 years

20-24 years

25-34 years

35-44 years

45-54 years

55-64 years

65-74 years

75-84 years

85+ years

Bowen Hills RegionInner BrisbaneInner SydneyInner Melbourne


}CHART 9: Employment by industry sector, Central Brisbane to Airport Corridor (% of jobs), 2011.


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DemographicsThis section provides a profile of the Bowen Hills Region with a comparison

of Inner Brisbane (Inner Brisbane Statistical Area Level 3 region as defined by the Australian Bureau of Statistics), Inner Sydney (City of Sydney) and Inner Melbourne (City of Melbourne) to place the Bowen Hills Region in the context of these regions.

Age profileThe Bowen Hills Region population is concentrated amongst those aged 25

to 44 years old—higher than Inner Brisbane and the other inner city markets. In particular, 36% of residents are aged 25 to 34 years old, with this group providing the majority of rental demand. At the older end of the cohort (35 to 44 year olds), the population is likely to be increasingly moving into owner occupation.

As indicated earlier the key 20–39 year old age cohort (together with 60+ year olds) will experience the greatest level of population growth in Brisbane, thereby contributing to demand—primarily as renters, but to some extent also as owner occupiers (Chart 10).

Household type Couple without children households are the predominant household type in the

Bowen Hills Region, accounting for 37% of total households—also higher than both Inner Brisbane and the other inner city markets. Lone person and group households also have a higher prevalence than most other inner city regions, with a corresponding lower share of households with children (Chart 11).

Typically, these one and two person households reflect household sizes more conducive to apartment occupancy, rather than detached houses.

Apartment typeTwo bedroom dwellings are the main apartment type in the Bowen Hills Region,

with a higher prevalence than inner Brisbane and the other inner city markets (Chart 12). Despite the higher prevalence of lone person and couple without children households, there is an under representation of one bedroom apartments compared to the Inner Sydney and Inner Melbourne regions, with three bedroom apartments also accounting for a slightly higher share of apartment dwellings. In this sense, there is may be potential for unmet demand for one bedroom apartments in the Bowen Hills Region.

!

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!

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0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0






Public sector

Brisbane-Airport corridor

Metropolitan Brisbane


0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0

0-14 years

15-19 years

20-24 years

25-34 years

35-44 years

45-54 years

55-64 years

65-74 years

75-84 years

85+ years



}CHART 10: Share of population by age (%), 2011.


9

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0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0

Couple family with no children

Family with dependent children

Family - all non-dependent children

Other family

Lone person households

Group households

Bowen Hills Region

Inner Brisbane

Inner Sydney

Inner Melbourne


0.0

10.0

20.0

30.0

40.0

50.0

60.0

Studio/bedsit 1 2 3 4+



}CHART 11: Household type (% of total households), 2011.

!

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0.0 5.0 10.0 15.0 20.0 25.0 30.0 35.0 40.0

Couple family with no children

Family with dependent children

Family - all non-dependent children

Other family

Lone person households

Group households

Bowen Hills Region

Inner Brisbane

Inner Sydney

Inner Melbourne


0.0

10.0

20.0

30.0

40.0

50.0

60.0

Studio/bedsit 1 2 3 4+


Source: Australian Bureau of Statistics}CHART 12: Number of bedrooms, (% of total 4+ storey apartments), 2011.

}CHART 13: Industry sector (% employed persons), 2011.

!

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0.0 5.0 10.0 15.0 20.0 25.0 30.0






Public sector

Bowen Hills Region

Inner Brisbane

Inner Sydney

Inner Melbourne


0.0 20.0 40.0 60.0

Postgraduate DegreeLevel

Graduate Diploma andGraduate Certificate

Level

Bachelor DegreeLevel

Advanced Diplomaand Diploma Level

Certificate Level:




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Employment and education Industry employed

The location of the Bowen Hills Region adjacent to the Brisbane CBD is reflected by the high percentage of residents employed in the Finance, Insurance and Business Servcies sector and in the Public Sector.

However, workers in the Bowen Hills Region are more broadly spread across industry sectors than the other inner city markets with a higher representation also employed in the Manufacturing/Utilities, Construction/Primary Industry and Wholesale/Transport/Telecommunications sectors (Chart 13).

The broader base of workers in the Bowen Hills Region provides greater support for occupier demand if any individual industry sector experiences adverse conditions.

Education and occupationThe majority of the population (61%) of the Bowen Hills Region has a Bachelor

Degree or above (Chart 14). This is slightly lower than the other inner city markets, with the Bowen Hills Region correspondingly having a higher percentageof population with a Certificate level population.

The greater range in the level of education is reflected in the employment profile of the Bowen Hills Region, with a work force that is spread across more occupations than the other inner city regions (Chart 15). The majority (54%) of the employed population in the Bowen Hills Region are still employed as Managers or Professionals, but the Region also has a higher prevalence of Clerical and Administrative workers and Sales Workers. This suggests that the Bowen Hills Region is more accessable to a greater range of persons than the other inner city regions.

Household incomeHouseholds in the Bowen Hills Region have a higher level of household income

than the other inner city markets, with a greater percentage of households earning more than $2,000 per week ($104,000 per annum). With a lower presence of students and retirement aged population than the other inner city markets, there is a lower prevalence of those earning less than $1,000 per week ($52,000 per year) (Chart 16).

With the exception of Inner Sydney, the Bowen Hills Region also has a higher percentage of households earning the top income cohort of $4,000 per week ($208,000 per annum).

Method of travel to workTravel to work is dependent on the distance to employment centres as well

as the type of transport servicing the region. As a result, the main form of public transport to work in the Bowen Hills Region is a bus, with a small percentage also taking a train (Chart 17).

Some 25% of workers in the Bowen Hills Region walk or cycle to work. While many can still walk into Brisbane CBD, this still appears a relatively high percentage compared to the other inner city regions that contain the CBD and is likely to also reflect the level of employment that is available within the Bowen Hills Region itself and those walking to work within the Region.


11

}CHART 15: Occupation (% of employed persons), 2011.

0.0 10.0 20.0 30.0 40.0 50.0

<$1,000 per week

$1,000-$2,000 per week

$2,000-$3,000 per week

$3,000-$4,000 per week

$4,000+ per week

Bowen Hills Region

Inner Brisbane

Inner Sydney

Inner Melbourne


}CHART 16: Weekly household income (% of h’holds), 2011.

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

Train Bus Tram/Ferry Walked/cycled Worked at home



}CHART 17: Method of travel to work (% employed persons), 2011.

0 5 10 15 20 25 30 35 40 45

Managers

Professionals

Technicians and trades

Community and personalservices

Clerical and administrative

Sales workers

Mach. operators and drivers

Labourers

Bowen Hills Region

Inner Brisbane

Inner Sydney

Inner Melbourne


}CHART 14: Highest education attained (% of persons), 2011.

0.0 20.0 40.0 60.0

Postgraduate Degree Level

Graduate Diploma andGraduate Certificate Level

Bachelor Degree Level

Advanced Diploma andDiploma Level

Certificate Level:




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BIS Shrapnel has been retained by Arden Property Group to provide this overview of the Bowen Hills Region Apartment market. Whilst this information has been carefully compiled, no warranty or promise as to its correctness is made or intended. The information outlined within this document represents subjective opinion by BIS Shrapnel and should not be relied upon for investment decisions. Interested parties should undertake independent inquiries and investigations to satisfy themselves that any details herein are true and correct.

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12 - myComplex · BOWEN HILLS, QLD 4006. Appendix One BMT Tax Depreciation Estimate 37 Mayne Road BOWEN HILLS, QLD 4006 BMT Tax Depreciation QUANTITY SURVEYORS Maximising Property