As this newsletter marks the end of the 2017-18 financial year, I have had a chance to step back from budgets and business planning to reflect on the national picture. And it has been all about the big picture for MacroPlan, with growth in both the value and breadth of major project success. The continued positive feedback from our clients has confirmed that our unique approach to a collaborative working journey, with a core focus in research and planning is providing strong results for boards, management and communities alike.
It can be argued that the retail environment is changing at faster pace than ever before. The implications to physical property will be very significant. Over the next few months, MacroPlan will unpack five key trends that will impact the future of the retail property sector. Trend one: Integrated and mixed use developments. Across Australia, we expect to see significant growth in the Integrated Developments space, where traditional retail co-locates with commercial and other non-retail usages such as entertainment and hotel premises, often now in larger precincts.
The Hunter Region is experiencing a wave of economic growth as a result of one of the biggest jobs surges in a decade, a rapidly diversifying economy with strong service sector growth in health and education and high levels of infrastructure investment (light rail, university expansion). Add to this, local property prices at more than 50% lower than the Sydney average, creating significant arbitrage opportunities, combined with the natural amenity of the region, you have yourself a compelling proposition. This is great news for the region, but what does it mean for the retirement and aged care sector?
Warwick Turpin has recently joined MacroPlan as the General Manager of Retail. He has over 20 years of leasing, shopping centre management and consultancy experience, with a proven track record across a broad range of retail assets from neighbourhood centres to strip retail, CBD centres, sub-regional centres and large format retail. Warwick has been involved with existing centres, expansions and greenfield sites and consistently delivered quality outcomes for a wide range of government, institutional and private clients.
Queensland’s tallest residential tower, the $1.2 billion “Spirit”, will rise almost 300 metres above the Gold Coast and inject $1.84 billion into its economy. Chinese-backed developer Forise Holdings said the 89-storey residential apartment tower, offering 479 residential dwellings, will create a new landmark for the city. The project of mass proportions will include an unprecedented 2700sq m of residential facilities, a 1800sq m four-bedroom penthouse said to cost $38.8 million, rooftop facilities and include three levels of ground floor retail. About $44 million will be put toward underground works alone, with the development estimated to provide 945 jobs a year during the initial construction phase in what is considered one of the nation’s most complex projects.
Queensland’s 2018-19 Budget includes a range of items which support infrastructure, skills and services to boost employment and build cities and regions across the state. This Budget can be considered to be positive for the property industry. Some measures introduced may have a slightly negative impact for some participants in the property market namely increases in two tax measures; 1. An increase to the land tax rate on property holdings above $10 million by 0.5 percentage points; and 2. An increase in the additional foreign acquirer duty to 7%.
The recent economic climate in Perth and Western Australia has not been mild, with the effects of the post-commodities boom still reverberating across the State since around 2012-13. The latest economic picture from the WA Treasury indicates a fall, in real terms, in the Gross State Product (GSP) by 2.7% in 2016-17, which was the lowest rate of change across all states and below the national Gross Domestic Product (GDP) growth of 2%. Western Australia’s population stands at around 2.58 million people, and grew modestly by 0.8% in 2017, well below the national level of 1.6%.