WRIGHT DENMAN PROSPECT AREA PROFILE - 3 Property Group
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WRIGHT DENMAN PROSPECT AREA PROFILE © MACRO PL AN DIMASO
CONTENTS
WHY CANBERR A? PG 04
INVEST IN THE MOLONGLO VALLEY PG 06
3 PROPERT Y GROUP PG 08
DETAILED INVESTMENT ANALYSIS PG 11
Population Growth
Demographics
Tenure & Typology
House prices & Rental yields
Future Residential Supply & Infrastructure
3 PROPERT Y GROUP
"CLEARLY CANBERRA IS GREAT FOR FAMILIES, AND ITS SUPERIOR PAY PACKETS ARE
ATTRACTIVE FOR YOUNG PROFESSIONALS.”
WHY CANBERRA? CommSec Senior Economist Craig James
Language Annual House Price Growth
CANBERR A IS AUSTR ALIA’S L ARGEST INL AND CIT Y AND IS LOCATED ABOUT 170 MILES SOUTH-
WEST OF SYDNEY AND 410 MILES NORTH-EAST OF MELBOURNE. Other than English, the top three Canberra Growing Australia
households are Mandarin, Arabic and
Cantonese. 2.5
The Capital city of Australia is well-known for Canberra is designed around five major town 2.0
its strong residential market which retains centres, which operate as micro cities within 1 Mandarin
value over the longer term. In the eighteen the larger capital city infrastructure. In 1.5
years since the June quarter of 2000, Canberra addition to the city centre, the town centres
2 Arabic
1.0
house prices have only seen four minimal include Molonglo Valley, Belconnen, Gungahlin,
3 Cantonese
drops, recording an increase over 66 of the Woden and Tuggeranong. 0.5
72 quarters.
While Canberra’s population is growing at 0.0
WRIGHT DENMAN PROSPECT AREA PROFILE
Population
Canberra is the seat of Parliament which a rapid rate, the surrounding regions of
ACT
NSW
VIC
QLD
SA
WA
TAS
NT
Ausrtalia
has a significant impact on the stability of New South Wales also provide significant Canberra’s total population is 415,916 and is
the residential housing market – the public population fluctuation on a daily basis. Located expected to reach 437,032 by 2022.
service offers stable employment to more approximately 30-45 minutes, areas such
WHY CANBER A?
than 40% of the capital’s population in roles as Queanbeyan, Googong, Murrumbateman,
Market stability
that are characterised by long-term tenure, Yass and Bungendore all utilise Canberra for
above average wages and a work week which employment and can grow the population on In the nearly eighteen years since the turn
provides ample time for leisure. any given day to over 800,000 people. of the century, Canberra’s house price has
415,916 437,032
increased in 66 of the 72 quarters – the capital
offers a level of stability over the longer term,
Centrally Located Year Population Avg Age which is rarely seen in other capital cities.
CENTRALLY LOCATED 2022 437,032 36 years When compared to the two major capital cities,
2027 469,015 37 years
Sydney and Melbourne, Canberra has seen
2032 499,463 38 years
2037 529,330 38 years the Canberra has experienced the highest
GUNGAHLIN
2042 559,569 39 years percentage of growth at 242.8%
BELCONNEN
2047 590,492 39 years
CANBERRA CITY 2052 621,492 40 years
BRISBANE
2057 652,053 40 years
WODEN
2062 681,187 41 years Canberra displays the greatest strength over
the longer term
SYDNEY TUGGERANONG
CANBERRA
Canberra has one of the fastest growing
MELBOURNE CBR SYD MEL
populations in Australia which is largely driven % Growth 242.8% 241.3% 216.67%
/15 Yrs
by interstate and overseas migration and the
2015 Median $641,000 $ 1,150,357 $855,000
capital status as a regional city for the purpose of House Price
skilled migration. Canberra is also experiencing
a baby boom due to more young families and
“NET OVERSEAS MIGRATION WAS THE MAIN CONTRIBUTOR IN THE ACT’S GROWTH AT couples calling the capital home. The table below
48%. NATURAL INCREASE AND NET INTERSTATE MIGRATION CONTRIBUTED 44% AND 8% shows the most recent percentage of population
RESPECTIVELY. BOTH NET OVERSEAS MIGRATION AND NATURAL INCREASE WERE AT THE growth for Australia and the capital cities.
HIGHEST LEVELS EVER EXPERIENCED IN A CALENDAR YEAR BY THE ACT”
ABS Demography Director Anthony Grubb
© MACRO PL AN DIMASO 5
3 PROPERT Y GROUP
INVEST IN THE Demand
With population growth comes demand for
Transport & Infrastructure
To support the growing population growth in
MOLONGLO VALLEY
new homes. The demand in the Molonglo the Molonglo Valley 10,600 retail floorspace
Valley and the suburbs of Wright & Denman planned to support the region including
Prospect has been significant and will result Woolworths and Aldi and 37 speciality shop.
in a shortfall in supply in the coming years.
Located in the centre of Woden, an 11-minute
LOCATED 14-MINUTES WEST OF THE CANBERR A CBD AND 15-MINUTES SOUTH OF THE 1096 homes have currently been approved to
drive from the Wright – Denman Prospect
BELCONNEN CBD, THE MOLONGLO VALLEY IS BORDERED BY DUFFY AND HOLDER IN THE be delivered by 2023 which is a significant
area, is Westfield Woden. This major regional
SOUTH, MOUNT STROMLO TO THE WEST, THE K AMA AND LOWER MOLONGLO NATURE shortfall when compared to population growth
centre offers 64,100m2 of retail space
RESERVES IN THE NORTH AND MOLONGLO IN THE EAST. in the region.
including major retailers such as David Jones,
Woolworths, Big W, Coles and JB Hi-Fi. The
centre also has 198 specialty stores.
Location
Over the last two years the Molonglo region The demographic profile of the area reflects
There are four bus routes that run through the
population has grown by 81.1%, from 3,228 in young families with high household incomes, The Molonglo Valley is very well-known for an
WRIGHT DENMAN PROSPECT AREA PROFILE
centre of the area, 83, 182, 783 and 983.
2015 to 5,847 in 2017. This growth was largely who are buying their own homes. outdoors focus, which attracts a significant
INVEST IN THE MOLONGLO VALLEY
driven by the suburb of Wright. amount of people to the region, including John Gorton Drive runs through the centre of
the 167,000 that attend events or visit Mount the area, providing access to the Canberra CBD
Stromlo Forest Park – a purpose-built outdoor in the east and the University of Canberra/
recreation facility. Belconnen CBD in the north.
Beyond the suburb, Wright/Denman Prospect
is very close to the geographical centre
Education
of Canberra and is 10-15 minutes to major
locations of interest, including Woden Town Within a five minute drive from the area there
Centre, Canberra’s city centre, Canberra are five schools including the Charles Weston
Hospital, Calvary Hospital, University of School, Duffy Primary School, St Jude’s
Canberra Hospital, Australian National School, Orana Steiner School and Islamic
University, University of Canberra and School of Canberra. In the surrounding
Canberra’s International Airport. suburbs there are an additional five schools.
The University of Canberra (UC) Belconnen
Population growth campus is a 15-minute drive from the area
Liveability & Leisure
and theAustralian National University (ANU)
The region of Wright/Denman Prospect is ACT Treasury predicts Canberra’s population
The Molonglo Valley is a sought-after Woden Valley campus is a 12-minute drive.
experiencing significant population growth will grow by 31,585 residents by 2022 and more
destination for families and those seeking
due to its popularity as a premium infill area. than 13,000 of this population growth will be Canberra Institute of Technology is an 11-minute
a lifestyle based around recreation, health
Projected population growth is 13.1% or 2,892 choosing to call Wright home. drive from the Wright – Denman Prospect area.
and fitness. The area is a five-minute drive
residents annual.
away from Mount Stromlo where visitors can
enjoy hiking, bird-watching, mountain biking,
WRIGHT/ WRIGHT/DENMAN swimming and bush walking. Furthermore the Investment Property Data For All Houses
DENMAN PROSPECT PROSPECT
POPULATION Mount Stromlo Observatory offers visitors an
POPULATION Annual
Growth
Median
Price
Median
Rent
Rental
Yield
WILL INCREASE interactive astronomy exhibit and stunning
5,847
5.8% $794K $740/wk 4.8%
TO OVER views across Canberra. Close by are the
200% Forest Park Riding and Equitation School,
National Zoo and Aquarium and National Investment Property Data For All Units
Arboretum. Annual Median Median Rental
Growth Price Rent Yield
© MACRO PL AN DIMASO 7 2.9% $391K $450/wk 6.0%
3 PROPERT Y GROUP
3 PROPERTY GROUP
3 PROPERT Y GROUP CREATES OUTSTANDING PROJECTS THAT DELIVER ENDURING,
SUSTAINABLE VALUE AND CONTRIBUTE TO THE SOCIAL AND ECONOMIC WELFARE OF OUR CIT Y.
Our team are committed to our customers and community and are constantly looking to create unique
projects that contribute to better environments, better ways of living and to the betterment of our city.
We place a strong focus on environmentally sustainable inclusions, with each of our developments
setting a new benchmark. Our homes are designed with a minimum 6-star energy rating which
optimises the way the natural environment and the position of your home work together, minimises
your energy costs and reduces the impact 3 Property Group homes have on the environment.
WRIGHT DENMAN PROSPECT AREA PROFILE
We are also pioneers in the home automation space and use 3PUSH to deliver on the promise of a
connected home. When you invest in a home built by 3 Property Group, with one control you have
the capability to master virtually any device system or appliance within your property.
We see the value in providing our clients with a third-party investment analysis to assist in the
INTRODUCTION
understanding of location and demographics, house prices and rental yields and current and
planned infrastructure.
This report provides an overview of suburbs of Wright and Denman Prospect, within the region of
the Molonglo Valley. We have also provided a detailed investment analysis of sample products for
your consideration within our Luxe development.
© MACRO PL AN DIMASO 9
DETAILED INVESTMENT ANALYSIS WRIGHT/DENMAN PROSPECT
3 PROPERT Y GROUP
POPULATION
The figure below illustrates the components Increasing net interstate migration indicates
of population change each year over the last confidence in the ACT economy is strong
17 years. and should have a positive effect on wages
GROWTH
and employment.
Since 2006, net overseas migration has been
a strong driver of the ACT’s growth while net
inter-state migration increased moderately
between 2006 and 2012 before again falling
STRONG POPUL ATION GROW TH IS EVIDENT IN THE MOLONGLO AREA – A POPUL AR NEW INFILL
below zero over up until 2016.
AREA FOR CANBERRANS, THE GROW TH IS L ARGELY DRIVEN BY THE SUBURB OF WRIGHT.
Regional population growth context
Population in the region of Molonglo is 5,847 Historical population is sourced from the
DETAILED INVESTMENTANALYSIS WRIGHT/DENMAN PROSPECT
and has grown by 81.1 in two years. ACT Australian Bureau of Statistics Estimated 8000
Treasury projections expect the area to see an Resident Population and the projections are
additional 54,951 residents by 2036 taking the derived from the growth rate for the Cotter 6000
WRIGHT DENMAN PROSPECT AREA PROFILE
population of this region to 60,798. This is an – Namadgi Statistical Area 3 produced by the
average annual growth of 13.1%. ACT Government Treasury.
4000
Historical and forecast population – Molonglo region, 2015 - 2036 2000
70,000 50%
0
45%
60,000
40%
-2000
50,000 35%
30%
40,000
25% -4000
30,000
20%
Jun 2012
Jun 2007
Jun 2008
Jun 2009
Jun 2010
Jun 2001
Jun 2011
Jun 2013
Jun 2014
Jun 2015
Jun 2016
Jun 2017
Jun 2002
Jun 2003
Jun 2004
Jun 2005
Jun 2006
20,000 15%
10%
10,000
5%
0 0%
2015 (a )
2016 (a )
2017 (a )
2018 (p )
2019 (p )
2020 (p )
2021 (p )
2022 (p )
2023 (p )
2024 (p )
2025 (p )
2026 (p )
2027 (p )
2028 (p )
2029 (p )
2030 (p )
2031 (p )
2032 (p )
2033 (p )
2034 (p )
2035 (p )
2036 (p )
Source: Australian Bureau of Statistics, Cat. no. 3101 – Australian Demographic Statistics
Note projections are based on the forecast growth rates for the Cotter – Namadgi SA3 Source: Australian Bureau of Statistics – Estimated
Regional Population, Australian Capital Territor y Government Treasur y – Population Projections 2017 - 2041
© MACRO PL AN DIMASO 133 PROPERT Y GROUP
DEMOGRAPHICS INCOME
Median personal and household incomes in Income in ACT and Wright/Denman Prospect
THE DEMOGR APHIC PROFILE OF THE AREA REFLECTS YOUNG FAMILIES WITH HIGH the area at $1,366 and $2,780 per week are
WRIGHT-
HOUSEHOLD INCOMES, WHO ARE BUYING THEIR OWN HOMES. higher than the ACT averages of $998 and INCOME DENMAN ACT
PROSPECT
$2,445 respectively.
Median personal $1,366 $998
weekly income
Household expenses are moderately higher Median family $2,780 $2,445
In 2016, the median age of residents in the area was 30, significantly lower than the territory weekly income
for renters and lower for mortgage payers
Median household
median age of 35. Couple families with and without children are the dominant household types at compared to the ACT. The median weekly rent weekly income $2,323 $2,070
29.3 and 29.4%. Personal and household incomes are above average. is $400 while the median monthly mortgage HOUSEHOLD EXPENSES
repayment is $1,950 in the area compared to
Median weekly rent $400 $380
DETAILED INVESTMENTANALYSIS WRIGHT/DENMAN PROSPECT
the ACT at $380 and $2,058 respectively. Median monthly $1950 $2,058
mortgage repayments
AGE STRUCTURE
Source: Australian Bureau of Statistics – Census 2016,
WRIGHT DENMAN PROSPECT AREA PROFILE
The median age in the Wright, Denman Prospect area is 30, significantly younger than the territory MacroPlan Dimasi
median age of 35. This difference is driven by a high proportion of 25-34 year olds living in the area
at 33.1% compared to the ACT average of 16.6%. The 0-14 population is above the ACT average at
8.3% compared to 6.7%.
Residents aged 45 and over represent just 18.4% of the population in the area compared with
35.8% in the Territory.
HOUSEHOLD COMPOSITION
Age structure in ACT and Wright/Denman Prospect
The average household size in the area was 2.3 Household composition in ACT and Wright/
33.1% people in 2016, compared with the ACT at 2.5. Denman Prospect
35%
Family households represent 65.9% of all 45%
30% 40%
households in the area, driven almost equally 35%
by couple families with and without children 30%
33.2%
25%
25%
29.4%
29.3%
26.6%
(29.3% and 29.4%), this compares with the 20%
18.3%
20% 15%
ACT where family households represent 70.7%
10%
12.1%
9.8%
10.7%
9.1% of all households. 5%
15% 5.9% 1.6% 1.0%
9.9% 0%
9.0% 5.6%
8.3% Lone person households represent 12.1% of all
10%
2.6%
3.0% households in the area compared to the ACT
0.9%
5% at 10.7%.
0.3%
0%
0- 4
Source: Australian Bureau of Statistics – Census 2016,
85+
5-14
15-19
20-24
25-34
35-44
45-54
55-64
65-74
75-84
MacroPlan Dimasi
ACT Wright-Denman Prospect
Source: Australian Bureau of Statistics – Census 2016, MacroPlan Dimasi
© MACRO PL AN DIMASO 153 PROPERT Y GROUP © MACRO PL AN DIMASO 17
3 PROPERT Y GROUP
TENURE AND HOUSE PRICES AND
TYPOLOGY RENTAL YIELDS
HOUSING TENURE DWELLING PRICES AND SALES VOLUMES
Home ownership in the area at 77.8% is Housing tenure in ACT and Wright/ Sales prices in the 2611 postal area were Sales rates grew substantially to 2013,
significantly higher than the average for the Denman Prospect steady over the period 2010 to 2013, but reflecting the initial development of the area,
ACT at 66.9%. the number of sales increased. Prices then since then annual sales have declined, in line
DETAILED INVESTMENTANALYSIS WRIGHT/DENMAN PROSPECT
80%
70.8% recovered in 2016 and have remained stable with the decline of available land/dwellings.
The difference is largely driven by a relatively 70%
since. In 2018 Y TD the median sale price was
60%
a high proportion of dwellings purchased with Lot sizes have declined slightly over the period
WRIGHT DENMAN PROSPECT AREA PROFILE
50% $668,750, an average annual growth of 2.5%
a mortgage at 70.8% compared with the ACT 39.3% from an average 900m2 in 2010 to 794m2 in
40%
32.5%
over the period 2010 – 2018 Y TD.
at 39.3%. 30%
27.6% 2018 Y TD.
21.4%
20%
Renters made up just 21.4% of dwellings 7.0%
10%
compared to the ACT average of 32.5%. 0%
Postal area 2611 dwelling sale prices and volume, 2010- 2018
$800,000 450
$700,000 422 422 400
Source: Australian Bureau of Statistics – Census 2016,
390
MacroPlan Dimasi 350
$600,000
344 336 300
$500,000
274 250
$400,000 256
200
$300,000
182 184 150
HOUSING TYPOLOGY $200,000
100
Apartments and units dominate the market in Housing Typology in ACT and Wright/ $100,000 50
the area at 49.6% of all dwellings in the area, Denman Prospect $0 0
2010 2011 2012 2013 2014 2015 2016 2017 2018
compared to the territory average of 15.0%.
80%
70%
Semi-detached houses represent 16.3% of all 67.0%
60%
dwellings in the area compared to 17.7% in 50% Source: SQM Research
49.6%
the ACT. 40%
27.6%
30% 34.1%
21.4%
The proportion of separate houses at 34.1% is 20%
7.0% 17.7%
significantly below the ACT average of 67.0%. 10% 16.3% 15.0%
0%
Source: Australian Bureau of Statistics – Census 2016,
MacroPlan Dimasi
© MACRO PL AN DIMASO 193 PROPERT Y GROUP
RENTAL YIELDS
In the postal area 2611 over the period 2010 to The volume of vacancies grew over the period
2018, rental yields for houses have declined by from 2010 to 2015, this reflects the initial
an average annual 1.4%, while yields for units establishment of the Wright, Denman Prospect
have grown over the period, at an average area and over the last three years the number
annual 6.1%. of vacancies has declined.
Yields are expected to grow as vacancy
rates fall and the market experiences some
tightening.
Postal area 2611, rental yields and vacancy rate, 2010 - 2018
WRIGHT DENMAN PROSPECT AREA PROFILE
50 20%
45 18%
38
40 35 16%
34 28
35 14%
30 12%
23
25 10%
20
20 8%
15 6%
10 11 4%
5 6 2%
4
0 0%
2010 2011 2012 2013 2014 2015 2016 2017 2018
Source: SQM Research
© MACRO PL AN DIMASO 213 PROPERT Y GROUP
FUTURE RESIDENTIAL RESIDENTIAL PROJECTS – REGIONAL SUPPLY
SUPPLY AND
According to the ACT Land and Property Report Regional pipeline of residential projects
issued in September 2017, there were around
4,250
1,100 dwellings undergoing construction and
4,200
INFRASTRUCTURE
3,500 dwelling sites waiting for construction 4,200
4,150
to start. 4,100 4,120
4,050
Furthermore, there are around 13,300 4,000
4,000
dwellings in the development pipeline, 3,950
including some 2,300 dwelling sites undergoing 3,900 3,930
3,850
land servicing.
RESIDENTIAL PROJECTS – FUTURE SUPPLY 3,800
7.0%
DETAILED INVESTMENTANALYSIS WRIGHT/DENMAN PROSPECT
3,750
The ACT Land Agency has also released
As of August 2018, there are 26 residential Future pipeline of residential projects 2017-18 2018-19 2019-20 2020-21
englobo land for up to 600 dwellings in
projects in the Wright – Denman Prospect
Denman Prospect.
WRIGHT DENMAN PROSPECT AREA PROFILE
600
area according to data from Cordell Connect. 53 1
If completed these projects will deliver an 500 This higher level of activity is partly the Source: Cordell Connect, 2018
additional 1,096 dwellings by 2023. result of an increase in planning activity in
400
the inner north that occurred in 2015 after the
The figure on the right illustrates the number
300 Government committed to light rail.
of dwellings that will be delivered if all
projects are completed as expected. 200
13 9 16 3
12 3
90
100
16
0 In Weston, just five minutes south of the
2018 2019 2020 2021 2022 2023
Wright – Denman Prospect area, is the Weston
MAJOR DEVELOPMENTS
Neighbourhood Centre supporting 10,600m2
Source: Cordell Connect, 2018 Between 2017-18 and 2018-19 the Government of retail floorspace, including a Woolworths,
is investing $1.7 billion in physical and digital ALDI and 37 specialty shops.
infrastructure in the ACT, and a further
Located in the centre of Woden, an 11-minute
$576 and 494 million in 2019-20 and 2020-21
drive from the Wright – Denman Prospect
DWELLING APPROVALS respectively.
area, is Westfield Woden. This major regional
The average number of approvals per year Other residential dwellings dominated the Planning and design is underway for the centre offers 64,100 m2 of retail space
over the period 2012 to 2017 was 107. There market up to 2015. Molonglo Valley commercial centre and including major retailers such as David Jones,
was a reduction in the number of dwelling immediate surrounding residential area, which Woolworths, Big W, Coles and JB Hi-Fi. The
Year to date approvals for 2018 indicate other
approvals between since 2014 to 181 from aims to accommodate 7,000-9,000 people of centre also has 198 specialty stores.
residential dwellings are again driving the
584. Over the last three years the number of the total 18,000 anticipated for stage 2.
market at 60.5% of all approvals.
approvals has recovered slightly up to 129 in
2018 (Y TD).
T he additional dwellings added to the
INFRASTRUCTURE
mar ket over the period was made up of 750 John Gorton Drive runs through the centre of
or 4 3.6% houses and 972 or 56.4% other the area, providing access to the Canberra CBD
r esidential dwellings. in the east and the University of Canberra/
Belconnen CBD in the north.
© MACRO PL AN DIMASO 233 PROPERT Y GROUP
WRIGHT DENMAN PROSPECT
AREA PROFILE
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