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South East Queensland: 2018 and beyond

South East Queensland (SEQ) played host to this year’s Commonwealth games. The games village and associated developments were just one of the 39 projects planned or currently underway for SEQ. With a range of projects including 3 airport projects ($1.95 billion), 5 rail projects ($17.5 billion) and 5 road projects ($4.84 billion), SEQ is in the midst of significant evolution. Adding to the list of key infrastructure projects, Brisbane will also be home to Australia’s longest zip line from 2020!

Key projects $100-$500 million

– Brisbane Airport Automall, $300 million.
Construction to commence in the near future.
51- hectare automotive precinct. Sci-Fleet Group and AP Eagers have secured sites in the precinct, which includes 2.5-kilometre test track.

– Brisbane Cruise Terminal, $100 million.
DA approved, construction to commence this year.
Involves the construction of a new mega-cruise ship terminal, proposed by the Port of Brisbane under the Governments’ Market-Led Proposal framework
– Waterlea at Walloon, $350 million.
Under construction.
Master planned community comprising 1,500 dwellings for base staff at the Amberley RAAF Base.

– RAAF Base Amberley Project, $250 million.
Under construction.
Federal Government funded project Construction of The Battlefield Airlifter Main Operating Base Facilities over four years.

– Sunshine Plaza Shopping Centre Redevelopment, $350 million.
Under construction.
Demolition of 6,500m² of showrooms and construction of a 34,000m² shopping centre.

– Oakey Solar Farm, $136 million.
Under construction.
Two-stage solar farm.

Key transport projects

– Brisbane Airport Second Runway, $1.35 billion.
Under construction, expected completion in 2020
Will allow for the same capacity as Hong Kong and Singapore, providing recional economic benefits of ~$5 billion p.a. by 2035

– Sunshine Coast Airport Second Runway, $320 million
Construction expected to start this year. Completion anticipated 2020/21
Construction of a new runway capable of servicing international flights will provide regional economic benefits of $4.1 billion between 2020 and 2040.

– Gold Coast Airport, $300 million
Projcet to commence after the Commonweath Games. Expected completion 2019.
Part of a long-term strategy to handle an expected 16 million passengers per annum by 2031.

– Cross River Rail, $5.4 billion
Early site works commenced in 2017. Completion expected from 2024
Rail link between Dutton Park and Bowen Hills. The State Government has committed to fully fund the project, however, is pursuing Federal Government and/or private sector funding.

– Brisbane Metro, $944 million
Business case released. Currently unfunded.
High-frequency subway systems to link Eight Mile Plains to Roma Street and Herston to St Lucia. Brisbane City Council-led project.

– Gold Coast Light Rail Project, Stage 2 $420 million; stage 3A $500 million
Stage 2 completed late 2017. Stage 3A is currently in planning.
Stage 2 connects the Southport end of Stage 1 of the Stage 1 of the Light Rail Project to the heavy rail at Helensvale. Stage 3A proposed to run from Broadbeach to Burleigh Heads.

– Gateway Upgrade North, $1.143 billion
Under construction, completion expected by late 2018
Upgrade of Gateway Motorway between Nudgee and Bracken Ridge. Jointly funded by Federal and State Governments.

– Kingsford Smith Drive Upgrade, $650 million
Under construction, completion due in 2019.
Widening of the road from four to six lanes as well as pedestrian and cycle facilities.

Potential effects on the Property Market

Industrial
– Melbourne to Brisbane inland rail
Increasing the freedom of movement and access ability to Brisbane is expected to have a significant impact on industrial occupier demand and investment.
– The Gateway Upgrade North
The resulting reduced travel times between Brisbane and Moreton Bay Region will encourage stronger occupier demand for industrial land in the Northern Corridor.
– Logan Enhancement Project
The privately funded project is expected to bring increased demand to the Logan Motorway and M1 corridors and improve accessibility to the region.

Office
Growth in the white collar employment has contributed to a correlating increase in office space demand. SEQ previously lacked major stimulus to office demand in the form of infrastructure. The projects planned and underway are likely to provide the required boost. Outside of Brisbane, Maroochydore City and North Lake Laguna include the development of sizable amounts of office space.
The strong population growth on Sunshine Coast and Moreton Bay Regions is also expected to bring increased demand to the area.

Retail
There is substantial amount of new retail in SEQ increasing competition in an already competitive environment. Catering towards a forecasted strong growth in visitors, China remains a key international source and visitation from China is expected to continue to grow at a rapid rate for the foreseeable future.
Additionally, development will also cater to the strong location specific retail powered population growth. Such as the Coomera Town Centre project.

Residential Development
It is expected that the Cross River Rail and proposed Brisbane Metro will encourage developers to look for further opportunities in Inner Brisbane and middle-ring suburbs.
University of the Sunshine Coast campus Laguna North Lakes Development will provide new sources of employment and therefore increase demand for housing in the area.

Hotels
The expansion of Brisbane, Sunshine Coast and Gold Coast airports terminals, cruise ship terminal and key projects at Queen’s Warf and Brisbane Live will encourage and facilitate increased flow of visitors to the area and we will see an increased demand for short-term accommodation.
The shortage of hotel accommodation in the Sunshine Coast area will present opportunities for developers in the region. Furthermore, the pending bid for the 2028 Olympic Games by the Queensland government will provide an incentive for developers in the underserviced regions of SEQ if successful.

Student accommodation
The current gap in transport between competing cities such as Melbourne or Singapore is likely to be reduced with the number of key transport projects to be completed between 2018 and 2024. University of the Sunshine Coast Campus development will also encourage the development of additional student accommodation.

In the midst of significant evolution, SEQ will continue to provide substantial capacity for key projects and will facilitate increased visitation to the region.
Entertainment precincts at Queen’s Wharf, Brisbane Live and Howard Smith Wharves will give people a reason to visit.
Accessibility to SEQ from transport projects will aid visitation and the increased availability of accommodation will provide choice to tourists.
The direct flow-on benefit that increased tourism (both domestic and international) and construction will have on the region’s economy is substantial.

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