NSW Regional Towns in NSW for studio apartments

Wondering ideas for towns in NSW where there would be demand for studio apartments (not concerned about zonings etc just more where there would be a demand)

Not including
Sydney
Central Coast
Newcastle
Illawarra

Also reasons behind why there is demand

thanks

 

Why studio apartments?
Are you looking for somewhere to build them?

 

yea

the places i mentioned would make more sense but building would be required to be multiple levels with higher construction costs (and a lot better return - im currently not at that stage to consider a project of that level.

Was thinking more regional with a low value land (<200k) and single story complex of 4-10 units

 

Some ideas i had was Grafton or Casino

other was towns in Hunter region (not newy) but scone muswellbrook etc but seemed like there was an oversupply at the moment.

Albury was also a consideration due to population in the area

 

Towns with a uni or a big hospital.

 

Single story. Hmm. I don't know much about development, but would it cost much more to do 1 bedrooms? But I guess, where do you stop, may as well go 2 bedroom.
I could see some regional places getting more expensive for construction costs if they weren't used to doing that type of dwelling if it wasn't that common?
Have you searched for demand/availability of blocks of 4-10 units on places like realestate.com.au?

 

Wouldnt be able to do over studio with my method of gaining approval from council

Im not building to sell but to keep as an investment under 1 title

As for availability lot of places seem to have them (renting around $150pw) though im notsure how the vacany are etc

 

Still quiet confused

Any ideas where a single bedroom dwelling would be in demand in regional NSW (preferably closer to QLD)

 

Port Macquarie - Stage 1 of new Charles Sturt University Campus opening in February of next year.... and over the following few years Stages 2 -5 will open, bringing over 7500 new FT students and several hundred staff and their families into town. That's more than a 10% population increase over the next few years, and one would imagine studio or 1 bed accommodation will be in high demand. The hospital has also just become a teaching hospital with several hundred interns commencing there next year. I've got an NRAS project there with large studios ( 40M2 + Balcony + Parking) and 1 bedders which completes in February, and should see incredible demand from the students and medical interns. It is located next door to the hospital and 700 Metres walk from the new campus. At mid 200's, and NRAS, the CF+ returns are pretty incredible

 

Like @Azazel said, why not go the extra room. Once you get to Regionals a studio is a motel room. Most regional towns have motels sorted. And can't see long term studios being in demand even in the uni towns, for the extra 10 or 20 bucks a week you could probably get a 1 or 2 bed small unit.

Perhaps look at a mix of studio and 1, 2 bed units.

I've stayed in a lot of motels and they always have people staying but depends on what's happening in town, as for long term accommodation small units aren't really available, which is put down to little demand. so that extra room may be beneficial.

 

euro73 - thanks for that will look into i, though being a beachside town I think there would be demand in the units regardless of the university expansion - though port maquarie may be a little out of my budget (well atleast this time around)

bob shovel - extra rooms are not possible - can make a larger 1 bedroom apartment (40m2) > 20m2 studio apartment but the added costs may make the project unviable.

Although id like to have 10 units would even consider keeping it to a 4 unit development which could even be detached

 

Could be toughb to get long term tenants but there is always something happening in regional towns so perhaps match the qty to the demand so you don't get burnt. I've worked on construction and projects they can last a few years and those would get snapped up!

Finding the area is the challenge

 

This is more of an experiment hence the regional towns <200k project

am even considering building the units in a way where i can be converted to a 2-3 bedder house easily if all fails.

And yes finding the area is the challenge!!!

 

Is that mid 200's for the studio or 1 bedders @euro73 ? Is there a website for this development?

 

That's for the Studio's. Stage 1 is fully sold out.

I have a small 2nd tranche of NRAS in the same development which I will be releasing later this year, and you can PM for details of how to get on the waiting list if you would like to.

 

OK, I'm intrigued. What is so special about your method of gaining approval from Council, and why does it have to be Studios & not one bedders?

 

Hi Gach2
why limit yourself to regional NSW. I assume you will have to travel as NSW is a big state
Therefore, I offer my suggestion. Look for a regional area with healthy employment and low vacancy rate and drill down to what makes the community tick
I dont have a clue about your circumstances but consider relocating homes as an option to studio apartments

 

Experiment is the right word. You have the cart before the horse a little, having a product but no market. Switch it around and start with rental markets. Research the towns with low vacancy rates first, then look at the drivers of those rental markets to see if there are likely to be singles renting in those areas (2 major reasons I could see off the bat would be universities and mines) then look at if those particular towns have already saturated the market with that kind of product. If not, and if the vancancy is still super tight, and average rents are high enough to make your numbers work then you are in business.

 

skater - its actually through ahsepp - boarding house and can be 1 bedroom but limited to 25m2 excluding bathroom/kitchen

Social investor - the legislation and incentives (one major driver for the experiment behind it is limited to NSW) regional is just due to the pricing and the fact it is an experiment. Relocatable housing is most likely to be used - in talks with a kit home builder and considering having it build and transported

Buyers Agents - Yup you got it right but - just need to find the right the balance between demand/vacancy rates and price.

 

Euro I'm not sure where you're getting your info from - CSU is only planned for max 5000 students on completion of stage 3 (2030's sometime, stage 2 and 3 currently unfunded) Stage 1 due to open next year with 700 students moving from their current premises in town. This is offset by TAFE redesign of 200 jobs, loss of up to 400 (mainly management) at Essential, and concern over the privatisation of Australian hearing call centre (far cheaper to run in Melbourne or other outer metro location). Port Base has been a "teaching" hospital for years - Newcastle uni have some midwives based there, and UNSW rural clinic has been there for many years now. Pac Highway is due for completion in 2017 this end, and close to 10,000 lots have been released from the western fringe of town as well as in majority of satellite villages in the LGA.
I'll be honest and say it seems odd to have NRAS here - it's incredibly easy to rent if you have stable employment, and cheap too ($400 a week 3/2/2 house less than 200m to beach - first rent increase in three years due later this year for example). And that's a 12 minute drive to the hospital.

Drivers for Port are unemployed/low skills employed moving from metro seeking cheap accom, and retirees (cashed up, majority not looking to rent). So studios would probably go very well, but you're more likely to get Centrelink etc. Also be prepared to pay the Port Premium on tradies - those who are long term locals but not born here tend to bring in builders from out west, and check what your rates would be (very high compared to metro areas). Port will continue to grow - but don't assume it will be based on students or a teaching clinic. It's still a town where those with any money send their kids to the one private school, and often board metro for final years of high school. (They've recently amalgamated the public high schools here into one due to lack of demand - those with no money send their kids public, those who can scrimp it catholic, and those who can afford it private).

Grafton would be interesting if the market hasn't already moved - five year pipeline of major construction work (Pac Highway, Grafton Bridge duplication, Gaol reopening). Will also have the gaol afterwards. Could be difficult getting workers already, and not sure if the market there has moved.

Kempsey could be an interesting one if you're happy to deal with the demographics.

Alternatively have you considered the feeder villages? ie Wauchope or Sawtell (Coffs) or South West Rocks (Kempsey)