QLD Kallangur 2020

But how many of them are moving to that area from somewhere else? Are these going to be mostly locals? Or people from a few suburbs over who drive/bus/train there? That to me is the key growth driver and I personally don't see a mass student population influx happening in high numbers. It's a bet on the area attracting people from afar to move there for uni.

 

It is not just the uni. The vacancy rates are already down in the area compared to 2 years ago.

 

In time, Kallangur will become a split suburb - Properties South of Anzac Ave (close to the incredible infrastructure that will continue to unfold), and those North of Anzac Ave, which are deprived of the very close proximity of what the Southern Anzac Avenue properties have to offer. The Northern properties also have established rough spots/ low socio-economic challenges, which will remain a challenge for the mid to long term, while the Southern properties will continue to push forward, as unique and attractive infrastructure continues to increase in order he region, be it the University Precinct, access to Kallangur and Petrie train stations, North Leagues Club, or lower crime ratio.

I'm quietly confident that what I state will be true.

 

Only need to look at zoning to know this is exactly what will happen.

 

What do you think about Lawnton and Petrie?

 

The Mill PDA project July Update:

The Mill at Moreton Bay redevelopment project update - July 2020

 

How many townhouses are proposed to be built in the immediate area?

 

Millions!

(exaggeration)

 

Interesting area...still very much an affordable area for owner occupiers and is an alternative to those priced outside the inner-middle rings. I think the market has great depth however my concern is the demographic that lives there is families (mums and dads) however with a rather lower disposable income to those closer to the CBD. Anything around the good school catchments will outperform the others however there is still ample of new supply coming onto the market and we all know abundance is the enemy of capital growth. University students should drive up yields and lower occupancy levels, however will that mean more investors flooding into the market and less transaction from owner occupiers? Owner occupiers should be the ones essentially creating growth otherwise it might end up being a self filling prophecy for investors from their own activity.

 

Yes, normally I would steer clear of Townhouses , and this is especially true for this area, as I suspect that there will be an oversupply in the years to come.

However, freestanding established homes, on 600m+ blocks in the area within a 1.5km radius of the Petrie PDA, are where the real gains are to be made.

As the uni is being developed inside of an already well established area, the only free land that is closely available will be used to build townhouses/units.

 

Image showing proposed road from Dohles Rocks road in Kallangur to Uni Precinct in PDA zone. This would ease peak hour traffic heading South down Anzac Ave to Petrie, which can already be congested.

Source: The Mill PDA - Places ('Mill Transit' link drop down)

 

I have to agree with you @JAW ... there is a big difference between north and south of Anzac Avenue in the area.
Investors just need to be aware of the much higher density zoning in place for some areas. In the future many of the homes will be replaced with multi level units (possibly student accommodation if the university continues to grow). I would NOT want to buy a low density zoned house that will be overshadowed in the years to come by a 21m high development! Yes the zoning allows for this in some locations - so it is important to do your due diligence.

 

Developers also need to be wary of areas that are prone to flooding close to the Uni PDA. Much of Lawnton is susceptible to flooding.

 

Lots of investors. Lots of supply. Lots of low income earners.

Three things I like to stay away from.

 

Yes investor activity has picked up in recent years. The graph below shows in 2016, 40% of occupants in the area were renters and the balance owner occupiers. But there appears to be a need for the investment housing in the area with current vacancy rates at 1% and trending downwards. It depends what an investor is trying to achieve in their portfolio as to whether this area might be suitable long term.

 

I don't know why people have this suburb on their radar. Anything next to the uni already is priced in any potential.

 

You may have to suss out the vacancy rates Paulie and rethink the comment

 

Was sash a troll? What did he do to be booted?

 

Have been looking across these suburbs for investors and found prices are now to high.
You are better going closer to the city like Geebung and Zillmere. Pending budget you can get a development project or renovation project for around $500k or under.

 

The Mill PDA update

The Mill at Moreton Bay redevelopment project update - December 2020