1. Property Market Report
Queensland
About This Report March quarter 2012
PRP Valuers and Consultants prepare standard research reports covering the
main markets within which we operate in each of our capital cities and major INSIDE THIS ISSUE:
regional locations.
Economic Fundamentals 2
The markets covered in this research report include the commercial office
market, industrial market, retail market, hotel and leisure market and residential Brisbane CBD Office Market 3
market. Gold Coast Office Market 5
Retail Market 6
We regularly undertake valuations of residential property for mortgage
purposes, as well as for development funding purposes. We also undertake Industrial Market 7
valuations of commercial, retail, industrial, hotel and leisure and special purpose
properties for many varied reasons, as set out later herein. Residential Market 9
Hotel and Leisure Market 12
Please contact a Director of our relevant office for any valuation or consulting
About Preston Rowe Paterson 16
quotations and advice.
Property Market Report—March 2012 1

2. Economic Fundamentals
The Australian economy continues to
record moderate growth, despite the
Gross Domestic Product
global outlook remaining cloudy. 400,000.0 5
Slightly below trend, GDP increased
by 2.3 percent over 2011, with the 350,000.0 4
December quarter recording a 0.4
300,000.0 3
percent increase. Lower than
expected GDP growth is a partial 250,000.0 2
GDP Millions
reflection of the extreme weather
% Change
conditions experienced earlier in the 200,000.0 1
year.
150,000.0 0
Another disappointing month for retail 100,000.0 -1
spending in February 2012, as total
retail sales rose by a mere 0.2 50,000.0 -2
percent. Welcomed rises were seen in
Food Retailing, Department Stores 0.0 -3
Sep-06
Sep-07
Sep-08
Sep-09
Sep-10
Sep-11
Dec-06
Jun-07
Jun-08
Jun-09
Jun-10
Jun-11
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Mar-07
Mar-08
Mar-09
Mar-10
Mar-11
and Other Retailing, whilst falls were
recorded in Cafes & Restaurants, Gross Domestic Product Seasonally Adjusted % Change Seasonally Adjusted
Clothing Retailers and Household Source: ABS/PRP Research
Goods Retailing.
The unemployment rate rose to 5.2
Unemployment (Rate and Persons)
percent in February. Job figures fell by
5,500,000 14.0
15,400, underpinned by falls in part
time employment, as fulltime jobs 12.0
remained flat. The participation rate 5,000,000
fell from 65.3 percent to 65.2 percent, 10.0
with the decline concentrated in
Unemployed persons
Males, whilst total hours worked rose
Unemployment Rate %
4,500,000
8.0
by 1.4 percent.
6.0
4,000,000
The RBA held the official cash rate
unchanged at 4.25 percent, and 4.0
explained that despite easing interest 3,500,000
rates by 50 basis points in late 2011, 2.0
the current pace of output growth is
somew hat l ow er than earli er 3,000,000 0.0
Sep-07
Sep-08
Sep-09
Sep-10
Sep-11
Jun-07
Jun-08
Jun-09
Jun-10
Jun-11
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Mar-07
Mar-08
Mar-09
Mar-10
Mar-11
Mar-12
anticipated. The RBA stated that it
would wait for Q1 CPI data before
Unemployed Persons Unemployment Rate
considering a further step in easing Source: ABS/PRP Research
monetary policy.
Consumer sentiment tumbled in QLD Turnover and Consumer Sentiment
March, with the Westpac-Melbourne 130.0 5,000
Institute index recording a 5 percent 125.0 4,800
decline over the month. The index fell
Westpac-Melb Institute Consumer Sentiment Index
120.0
4,600
from 101.10 in February 2012 to 96.1 in
115.0
March 2012. Domestic economic
QLD Turnover ($ million)
4,400
conditions and employment listed as 110.0
4,200
Survey respondents main concerns. 105.0
4,000
100.0
The Consumer Price Index (CPI) 95.0
3,800
re m a i n e d u n c h a n g e d i n t h e 3,600
90.0
December 2011 quarter, compared
3,400
to a 0.6 percent rise experienced in 85.0
the September quarter. A significant 80.0 3,200
rise was recorded in domestic holiday 75.0 3,000
travel and accommodation with a 7.3
Sep-07
Sep-08
Sep-09
Sep-10
Sep-11
Jun-07
Jun-08
Jun-09
Jun-10
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Jun-11
Dec-11
Mar-07
Mar-08
Mar-09
Mar-10
Mar-11
percent increase. Not surprisingly falls
were observed in fruit and vegetables Consumer Sentiment Index QLD Turnover
with falls of 13.4 percent and 5.0 Source: ABS/PRP Research
percent respectively.
Property Market Report—March 2012 2

3. Commercial Office Market
BRISBANE CBD OFFICE Brisbane Commercial - Stock & Vacancy
Brisbane CBD Brisbane Fringe
MARKET Precinct/Grade
Stock (m2) Vacancy % Stock (m2) Vacancy %
Total (All Grades) 2,071,240 6.16% 1,136,347 7.63%
Supply Premium 140,015 2.65%
In the six months to January 2012, A Grade 812,629 4.05% 526,795 3.09%
39,400 sqm of office space entered B Grade 837,034 7.49% 411,912 13.36%
the Brisbane CBD office market follow- C Grade 220,220 8.36% 175,622 8.79%
ing the completion of 123 Albert
D Grade 61,342 16.09% 22,018 0.00%
Street. When construction reached
completion in early 2012, The Dexus
owned 26 level building, added Brisbane CBD Office Market
38,500 sqm of Premium office space Net Absorption
to the Brisbane CBD office market. Rio 90,000
Tinto committed to 25,000 sqm of
space in 2008, whilst recent agree-
70,000
ments were reached with QTC and
Audited Net Absorption 12 months to...(sqm)
Urbis to secure 4,000 and 1,500 sqm
respectively. 50,000
The Brisbane CBD supply pipeline
looks set to return to more positive 30,000
territory in the coming years with
111,000 sqm of additional space ex- 10,000
pected to reach completion over
2012. 64,000 sqm is forecast to come -10,000
on line with the completion of the GPT
Wholesale Office Fund/Abu Dhabi
-30,000
Investment Authority joint venture at Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12
111 Eagle Street, with a further 28,200
sqm after the completion of 145 Ann Source: PCA/PRP Research
Street. An additional 18,800 sqm of
refurbished office space will further
bolster current CBD office market Brisbane CBD Office Market
levels. Looking further into the supply
pipeline, 2013 completion levels sof-
ten to sub 20,000 sqm, before return- 3.0% 6.8%
10.6%
ing to more buoyant levels in 2014.
Net Absorption/Vacancy Lev-
els
Brisbane CBD vacancy levels firmed
1.2 percentage points in the six
months to January 2012, falling from
7.4 percent recorded in the six months 39.2%
to July, to 6.2 percent in the six months
40.4%
to January 2012. Lower grade stock (c
& d) in Brisbane CBD office market
experienced a softening in vacancy
rates over this period, with D grade Premium A-Grade B-Grade C-Grade D-Grade
recording the most marked increase Source: PCA/PRP Research
in vacancy rates, lifting from 10.5 per-
cent in the six months to July to 16.1 total space in the Brisbane CBD office space has been in demand in the six
percent in the six month to January market has risen by 1.4 percent, rising month to January 2012, rising to 39.2
2012. On a more positive note B from 2.04 million sqm in the six months percent of market share. C Grade
grade vacancy rates tightened from to January 2011 to 2.07 million sqm in space saw a marginal decline in oc-
10.9 percent recorded in the six the six months to January 2012. A cupancy rates, falling from 220,646
months to July 2011 to 7.5 percent in Grade stock saw the sharpest in- sqm to 220,220 sqm in the six months
the six months to January 2012. crease in occupancy levels over the to January 2012.
year, rising by 4.9 percent. B Grade
Occupancy levels still dominates the market with 40.4
In the 12 months to January 2012, percent of share; however A grade
Property Market Report—March 2012 3

4. Demand/Leasing Activity Fortitude Valley from Laing O’Rourke The final transaction to have occurred
With record levels of expansion by the for undisclosed terms. The Building is in the first quarter of 2012 was sale of
resources sector and a renew confi- now 100 percent precommitted and the Becton office Fund’s 369 Ann
dence is other sectors, net absorption is expected to reach completion in
Street for approximately $36.25 million.
was well above historical long term mid 2012.
An undisclosed private investor pur-
averages. Just over 54,000 sqm of
chased the 6,700 sqm office block on
space was absorbed in CBD office Rents
market over the six months to January A robust leasing environment and an initial passing yield of 10.04 per-
2012, taking the 12 months total ab- tightening vacancy rates in the Bris- cent. With long term growth drivers in
sorption rate to over 92,000 sqm. Since bane CBD have underpinned rental place for the Queensland economy
January 2010, approximately 187,000 growth in both premium and A grade and demand set to remain strong,
sqm of space has been absorbed in space. Premium grade rents have good quality assets are expected to
the Brisbane CBD office market. As increased by over 2 percent in the last
continue to attract attention from
supply levels increased by only twelve months to sit between $700 -
investors.
118,000 sqm over this period, declin- $825 sqm pa. A Grade office space in
ing vacancy rates resulted. Looking the Brisbane CBD attracts rental rates
into further detail, 37,000 sqm of A of between $625 - $725 sqm. In the six
grade space was absorbed in the six months to March 2012, Lower grade
months to January 2012, with B grade office space (b) has transacted rang-
space seeing robust demand with ing between $500 -$625 sqm.
over 21,000 sqm of take-up.
Reinforcing confidence in the market, Investment Activity
demand levels remained buoyant in Strengthening tenant demand com-
the first quarter of 2012, with several bined with a robust economic growth
large leasing deals transacted over outlook over the medium term, has
the three months to March. Dominate caught the attention of both the do-
players in the market include the pro- mestic and the offshore investor alike.
fessional services and the enormous Five major transactions were re-
presence felt by the resource sectors. corded by PRP Research in the Bris-
Xstrata secured just under 2,500 sqm bane Office Market, during the first
of premium space from GPT Group at quarter of 2012, with a total transac-
111 Eagle Street, whilst late March tion value of $291 million. The most
saw Arrow Energy leasing 14,800 sqm notable transaction to occur during
at the same address, on an eight year this period was the purchase of 215
lease for an undisclosed rent. Adelaide Street, Brisbane by US based
Not forgetting the professional ser- Preamerica Real Estate Investors for
vices sector, Queensland Treasury $134.5 million. The 30,000 sqm office
Corporation leased just over 3,800 tower was purchased from GIC on an
sqm of space from Dexus Property approximate passing yield 8.5 per-
Group at 123 Albert Street, for re- cent. A further notable transaction to
ported par $725 sqm pa for a period occur during the first quarter of 2012
of seven years and after 20 years at was The Hines Global REIT purchase of
300 Queens street, BDO has commit- 144 Montague Street in South Brisbane
ted to 6,000 sqm of refurbished space for a reported $88 million. The 15,000
at 12 Creek street for a period of 12 sqm building was purchased from
years. Empricia Management Trust on an
Following trend of decentralisation initial yield of 8.5 percent.
activity by core service providers and 379 Queen Street sold in March 2012,
public sector industries, a number of
for a reported $21 million to
tenants are moving outside the CBD
Kingsmede Pty Ltd. The 15 level, 5500
and relocating to the suburbs &
Fringe. The bank of Queensland has sqm commercial tower is fully leased
pre-committed to leasing 12,500 sqm with a net income of approx $2.4 mil-
of space at the new “Gasworks” de- lion per year, representing an initial
velopment at Newstead Riverpark in passing yield of around 11.5 percent.
the Brisbane Fringe. The development An undisclosed private investor pur-
is expected to begin construction in 215 Adelaide Street, Brisbane was purchased
chased 20 Wharf Street for approxi- by Preamerica Real Estate, for $134.5 Million.
2013 and scheduled for completion in
February 2014, with rents believed to mately $11.3 million in January this
be in the low $500 per sqm bracket. year. Chesterton International bro-
The Macquarie Group has leased kered the deal for vendor, NEXTDC on
3,200 sqm of space at 825 Ann Street, an initial passing yield of 8.3 percent.
Property Market Report—March 2012 4

5. GOLD COAST OFFICE
Gold Coast Office Market
MARKET Net Absorption
50,000
Supply
An additional 931 sqm was added to 40,000
the Gold Coast Office Market in the
Audited Net Absorption 12 months to...(sqm)
six months to January 2012 with the 30,000
completion of a two storey office
complex at Via Roma Isle of Capri. 20,000
The Gold Coast office Market now
consists of 473,700 sqm of space, of 10,000
which 21.8 percent is vacant. The
2012 supply pipeline remains positive 0
with an anticipated 3,192 sqm of ad-
ditional space due to complete over -10,000
the year. Just under 2,000 sqm of
office space will be added to the -20,000
Jan-06 Jul-06 Jan-07 Jul-07 Jan-08 Jul-08 Jan-09 Jul-09 Jan-10 Jul-10 Jan-11 Jul-11 Jan-12
market with the completion of 237
Scottsdale Drive Robina, which is ex- Source: PCA/PRP Research
pected in the first half of this year. A
Further 1,200 sqm of space will come
on line when 82 Marine Parade South-
Gold Coast Office Market
port completes during the June quar-
ter.
3.7%
Demand/Vacancy Levels 0.0%
In the six months to January 2011 just
28.8%
over 3,200 sqm of space was ab-
sorbed in the Gold Coast Office Mar- 28.0%
ket, taking the 12 month total to 9,888
sqm. Positive net absorption and
scarce new supply has led to a 0.6
percent tightening in the Gold Coast
Office Market vacancy. Vacancy in
this market fell from 22.4 percent re-
corded in the six months to July 2011
to currently sit at 21.8 percent. B 39.6%
Grade vacancy saw the most marked
improvement, tightening by 1.9 per- Premium A-Grade B-Grade C-Grade D-Grade
cent points over the six month period. Source: PCA/PRP Research
However in stark contrast D Grade
office vacancy weakened by 9.8 2012, however looking closer at a sub-
percent over the six months to Janu- market level, A Grade stock posted a
ary 2012. Vacancy rates in the Gold 13.9 percent increase in occupied
Coast D Grade Office Market rose stock over the period whilst D Grade
from 12.6 percent in the six months to saw its third decline recording nega-
July 2011 to 22.4 percent over the six tive growth of 11.1 percent over the
months to January 2012. period.
Occupancy Investment Activity
B Grade space dominates occu- PRP Research did not record any sales
pancy levels in the Gold Coast Office
or lease transactions over 2,500 sqm or
Market, with 39.6 percent of total sup-
par $5 million that occurred during the
ply. A and C Grade space equate for
28.8 and 28.0 percent of the market three months to March 2012.
respectively. Little change has been
seen in total occupancy levels over
the last 12 months. A mere 2.7 per-
cent increase was seen in occupancy
levels over the 12 months to January
Property Market Report—March 2012 5

6. Retail Market
Demand Queensland Retail Turnover
Total Retail turnover in the state of 4500.0 4.0
Queensland saw a 2.1 percent in- 3.5
crease over a 12 month period to 3.0
February 2012, with robust growth
Monthly Percentage Change (%)
2.5
4250.0
seen in ‘Other Retailing’ categories 2.0
and Food Retailing alike. “Other retail- 1.5
ing” underpinned by buoyant in- Retail Turnover $ million
1.0
creases in both Pharmaceutical, Cos- 4000.0 0.5
metics etc and Newspaper, Book 0.0
Retailing, saw a 6.9 percent increase -0.5
over the 12 months to February 2012. 3750.0
-1.0
Food Retailing grew by 5.2 percent -1.5
over the 12 month period, to its high- -2.0
est level ever recorded. A growth -2.5
spike was also seen in Cafe and Res- 3500.0 -3.0
Nov-11
Feb-11
Feb-12
Sep-11
Aug-11
Oct-11
Jun-11
Dec-11
Mar-11
Apr-11
Jan-12
Jul-11
May-11
taurant Retailing, however falls were
recorded in Household Good, Depart-
Retail Turnover % Change
ment Stores, and Clothing and Foot- Source: ABS/PRP Research
wear Retailing. Clothing and Foot-
wear recorded the largest decline
over the 12 months to February 2012,
Queensland
falling by 5.7 percent, whilst Depart- Turnover
ment Store and Household Good 0.12 % Monthly Change
Retailing fell by 5.4 percent and 3.3 0.1
percent respectively.
0.08
Investment 0.06
During the three months to March 0.04
2012, PRP Research recorded four
Monthly % Change
major retail transactions within the
0.02
Queensland Retail Sector, with a total 0
Nov-2011 Dec-2011 Jan-2012 Feb-2012
market value of $452.2 million. Most -0.02
Notably, Late March saw CFS Retail
Property Trust announce the sale of a -0.04
50% share of the Myer Centre in Bris- -0.06
bane, to Unlisted Property Trust, ISPT -0.08
for $366 million, representing an initial
yield of 6.5 percent. The six level CBD Food Retailing Household goods Clothing, Footwear Department Stores Other Retailing Cafe, Restaurants
Regional Shopping Centres provides Source: ABS/PRP Research
63,700 sqm of retail space, and
houses Myer, Target, Coles, and 180 investment activity exhibits a renewed
additional speciality retail stores. Prior confidence in the retail property sec-
to this sale, LaSalle Australia Core Plus tor despite weakened consumer
Fund purchased Nerang Mall Shop- spending and increased online retail-
ping centre in February 2012 for a
ing. Particular interest has been
reported $23.4 million. The 8,700 sqm
neighbourhood shopping centre has placed on Queensland and the re-
been purchased from Mr Henry Yuen source states for investment opportu-
on a yield in excess of 10 percent. nity, as stronger economic growth is
Mid March, saw Stockland’s purchase forecast.
Centro Townsville at Aitkenvale in
North Queensland for approximately
$36.5 million. The 13,650 sqm Subre-
gional shopping centre was pur-
chased from the Centro owned MCS
17 Syndicate on an initial yield of 8.3
percent. The centre is anchored by
Kmart and Coles and contains a fur-
50% share of Myer Centre in Brisbane was
ther 25 specialty shops. Increased purchased by ISPT for $366 million, on a yield
of 6.5 percent
Property Market Report—March 2012 6

7. Industrial
Supply Leasing Activity: Brisbane Wolston Road after outgrowing its
The South East Queensland Industrial A renewed confidence in the Queen- current premises at Neon Street.
land Monitoring Program identified as sland industrial property market, on DHL Express has pre-committed to
at December 2010, 8,852 hectares of the back of increased investment in 4,300 sqm of space in Brisbane’s Air-
industrial land that currently exists in the resources sector and positive eco- port Precinct. Construction of the $15
the South East Queensland industrial nomic growth saw leasing activity million project will commence in May
land area, with a further 5,594 hec- trend upwards in the three months to this year and is located at the corner
tare of potential industrial land supply March 2012. PRP Research recorded of Lomandra Drive and Boronia Road.
available within in the region. It is esti- a number of major transactions that Engineering and construction giant
mated that industrial land consump- occurred over this period. The Austra- Clough will lease a 46.9 hectares site
tion in the four years to December lian Mud company, a subsidiary of the at 70 Darlington Drive, Yatala on a five
2010, was 120 hectares per annum, Imdex Group has leased just under year term, reportably worth $1.8 million
However estimated annual consump- 3,000 sqm of space at 67 Wolston plus per year . The facility comprises of
tion of industrial land in South East Road in Sumner Park. The industrial 9,500 sqm of factory, and 1,800 sqm of
Queensland for the six months to De- facility was leased for a five year term, office space.
cember 2010 has declined to 41 hec- with a five year option, for a net rent
tares (or approx 82 hectares per an- of approx $95 per sqm pa. The AMC
num). It is predicted that for a 5 to 15 will relocate to its new premises at
year time frame, 3,940 hectares of
land will be required to meet esti-
mated average consumption.
Port of Brisbane -
Container Trade - TEU's
Tenant Demand 800,000
Fluctuations in demand for logistics
700,000
and warehouse space can partly be
explained by ebbs and flow in port 600,000
activity. Brisbane Port activity contin-
ues to see growth in full import and 500,000
export TEU’s. Since the 2007-2008 Fi-
Number of TEU's
nancial year, TEU activity has grown 400,000
by 10.7 percent in the Port of Bris-
300,000
bane. Last year, TEU’s activity saw
exceptional growth with an 8.5 per- 200,000
cent increase. The number of TEU’s in
the Port of Brisbane has grown from 100,000
639,800 in the 2009-2010 Financial
year to 694,000 in the 2010-2011 finan- 0
Jan-04
Jan-05
Jan-06
Jan-07
Jan-08
Jan-09
Jan-10
Jan-11
cial year.
As a percentage of Queensland’s Source: Port of Brisbane /PRP Research Import Export
gross state product, income derived
from the manufacturing sector de-
clined by 0.4 percentage points in the Queensland Manufacturing Income
12 months to June 2011. June 2008 300000
V's Gross State Product 25000
saw the trough of total factor income
from manufacturing as a percent of
gross state product, falling to 11.5 250000
20000
percent. Although total factor income
Manufacturing Income $ million
from manufacturing rose to its highest 200000
State Product $million
level recorded, Queensland Gross 15000
State product also saw robust growth 150000
over the year, resulting in a decline in
10000
percentage total. A fall in manufac- 100000
turing income is consistent with the
declines seen in average consump- 5000
tion levels for industrial land over the 50000
six months to December 2010.
0 0
Jan-1991
Jan-1992
Jan-1993
Jan-1994
Jan-1995
Jan-1996
Jan-1997
Jan-1998
Jan-1999
Jan-2000
Jan-2001
Jan-2002
Jan-2003
Jan-2004
Jan-2005
Jan-2006
Jan-2007
Jan-2008
Jan-2009
Jan-2010
Jan-2011
Queensland Gross State Product Manufacturing Total Factor Income
Source:ABS/PRP Research
Property Market Report—March 2012 7

8. Leasing Activity: Gold Coast
An undisclosed construction com-
pany, linked to Queensland’s boom-
ing resources sector has leased 5,500
sqm of industrial space plus 660 sqm
of office space at 32 Demand Ave-
nue in Arundel on the Gold Coast. The
property is expected to fetch net
$450,000 per year in rental income for
the owner, equating to $82 plus per
sqm pa .
Investment Activity
Undoubtedly one of the largest trans-
action in Queensland industrial his-
tory , Springfield Land Corporation has
purchased half of the high-tech Po-
laris Data Centre in Greater Springfield
for a reported $110.5 million. The pur-
chase give Springfield Land Corpora-
tion 100 percent ownership of the An undisclosed construction company
14,000 sqm building. Tenants include will lease 5,000 sqm of industrial space at
British Gas, AAPT and Suncorp, who 32 Demand Avenue, Arundel
will retain one third of the floor space.
Sydney based Fund manager Heath-
ley, purchased a nine hectare indus-
trial property at Richlands, from Trinity
Group for $24.5 million. The property
contains a 13,000 sqm building cur-
rently leased to John Holland (a sub-
sidiary of Leighton Holdings).
In February 2012, Dexus Wholesale
property fund purchased a 12,483
sqm industrial facility in Morningside
for a reported $19.7 million, reflecting
a yield of 8.25 percent. And Finally,
Mainfreight has purchased a 5.4 hec-
tare site at 20 Distribution Street, Lara-
pinta for a reported $15.8 Million.
Mainfreight secured the land adja-
cent to Woolworths distribution centre
from Australand, who purchased the
property in November 2010 for $12.25
Million. The Polaris Data Centre in Greater Spring-
field sold for a reported $110.5 million to
The Springfield Land Corporation.
Property Market Report—March 2012 8

9. Residential
Supply Demand in 2006 by the ABS. The Australian Bu-
Land supply in the South East Queen- Population growth is a factor used in reau of statistics indicated as at June
sland Regional plan is currently limited establishing the demand for future 2006 there were approximately
by new stock coming through. This housing. The starting point in deter- 671,600 households in the Brisbane
stock is often dominated by large lots mining population growth is the popu- Region. In 2017 the ABS predicts an
and premium product that meets only lation statistics taken in the Australian additional 195,200 households will be
the requirements for up-graders. In Bureau of Statistics 2006 Census. The required to meet demand. This
2009 stronger demand was evident current population at 2006 was esti- equates to an average of 17,700
for smaller lots in response to the first mated at 1.8 million persons in the homes per annum. The ABS forecasts
home buyer grant; this supply how- Brisbane Region. By the start of 2017 that by 2017 the total number of
ever, was quickly taken up. Housing the population of Brisbane is forecast households in Brisbane Region will
supply in Brisbane is based on the to increase to 2.24 million, equating to reach 866,800 households.
boundaries of the South-East Queen- an additional 420,000 persons over a
sland Regional Plan 2009-2031 (SEQ). ten year period, or an average of
The SEQ Regional Plan is forecast to 42,000 additional persons per annum.
accommodate growth to 2031. These Changing demographics and house-
boundaries are assessed every five hold characteristics have an impact
years and extensions are based on of demand for housing within Austra-
demand and sustainability. lia. The A starting point for additional
As at June 2009, SEQ had 10,700 hec- households is the Census undertaken
tares of land identified for future ur-
ban use in the supply pipeline with an
estimated dwelling yield of 122,000 Projected No. household - Brisbane SD
2,000,000
lots. Potential land further down the
supply pipeline contains an additional 1,800,000
142,000 dwellings, with 35,500
1,600,000
Greenfield lots identified at the devel-
opment and subdivisional approval 1,400,000
stage.
In comparison to 12 months prior, the 1,200,000
Projected No.of households
total number of dwelling approvals in
1,000,000
the Brisbane Statistical Division de-
clined by 16 percent over the year to 800,000
December 2011. There were a total of
13,480 dwelling approvals in the 2011 600,000
calendar year, compared to 16,050 400,000
dwelling approvals one year prior. The
decline in total dwelling approvals 200,000
was underpinned by a 25 percent
decline in the number of ‘house’ 0
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
dwellings. The number of non house Source: ABS / PRP Research Family households Group households Lone person households
dwelling approvals fared better sliding
only five percent over the 12 month
period. Brisbane SD Dwelling Approvals
Construction activity in the Sunshine 25,000
state continues to decline, with a
further 17 percent fall in the number
of dwelling commencement occur- 20,000
ring in the nine months to September
2011 in comparison to the same nine
Annual Approvals
months, the year prior. The total num- 15,000
ber of dwellings that commenced
during the nine months to September
10,000
2010 reached 15,600 dwellings; how-
ever the nine months to September
2011 saw total dwelling commence- 5,000
ments decline by 3,660 dwellings, to
just under 12,000 dwellings. The num-
ber of new ‘house’ dwelling com- 0
mencements in the nine months to
2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
September 2011 saw the largest year Houses Other
on year decline falling 23 percent. Source: ABS / PRP Research
Property Market Report—March 2012 9