WRIGHT DENMAN PROSPECT COOMBS AREA PROFILE - 3 Property Group
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WRIGHT DENMAN PROSPECT COOMBS 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
WHY CANBERRA?
CANBERR A IS AUSTR ALIA’S L ARGEST INL AND CIT Y AND IS LOCATED ABOUT 170KM
SOUTH- WEST OF SYDNEY AND 410 MILES NORTH-EAST OF MELBOURNE.
The Capital city of Australia is well-known for Canberra is designed around five major town
its strong residential market which retains centres, which operate as micro cities within
value over the longer term. In the eighteen the larger capital city infrastructure. In
years since the June quarter of 2000, Canberra addition to the city centre, the town centres
house prices have only seen four minimal include Molonglo Valley, Belconnen, Gungahlin,
drops, recording an increase over 66 of the Woden and Tuggeranong.
WRIGHT DENMAN PROSPECT COOMBS AREA PROFILE
72 quarters.
While Canberra’s population is growing at
Canberra is the seat of Parliament which a rapid rate, the surrounding regions of
has a significant impact on the stability of New South Wales also provide significant
the residential housing market – the public population fluctuation on a daily basis. Located
service offers stable employment to more approximately 30-45 minutes from Canberra,
than 40% of the capital’s population in roles areas such as Queanbeyan, Googong,
that are characterised by long-term tenure, Murrumbateman, Yass and Bungendore all
above average wages and a work week which utilise the capital for employment and can
provides ample time for leisure. grow the population on any given day to over
800,000 people.
Centrally Located
CENTRALLY LOCATED
GUNGAHLIN
BELCONNEN
CANBERRA CITY
BRISBANE
WODEN
SYDNEY TUGGERANONG
CANBERRA
MELBOURNE
“NET OVERSEAS MIGRATION WAS THE MAIN CONTRIBUTOR IN THE ACT’S GROWTH AT
48%. NATURAL INCREASE AND NET INTERSTATE MIGRATION CONTRIBUTED 44% AND 8%
RESPECTIVELY. BOTH NET OVERSEAS MIGRATION AND NATURAL INCREASE WERE AT THE
HIGHEST LEVELS EVER EXPERIENCED IN A CALENDAR YEAR BY THE ACT”
ABS Demography Director Anthony Grubb
© MACRO PL AN DIMASO
"CLEARLY CANBERRA IS GREAT FOR FAMILIES, AND ITS SUPERIOR PAY PACKETS ARE
ATTRACTIVE FOR YOUNG PROFESSIONALS.”
CommSec Senior Economist Craig James
Language Annual House Price Growth
Other than English, the top three Canberra Growing Australia
households are Mandarin, Arabic and
Cantonese. 2.5
2.0
1 Mandarin
1.5
2 Arabic
1.0
3 Cantonese
0.5
0.0
Population
ACT
NSW
VIC
QLD
SA
WA
TAS
NT
Ausrtalia
Canberra’s total population is 415,916 and is
expected to reach 437,032 by 2022.
WHY CANBER A?
Market stability
In the nearly eighteen years since the turn
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,
Year Population Avg Age which is rarely seen in other capital cities.
2022 437,032 36 years When compared to the two major capital
2027 469,015 37 years
cities, Sydney and Melbourne, Canberra has
2032 499,463 38 years
2037 529,330 38 years experienced the highest percentage of growth
2042 559,569 39 years at 242.8%
2047 590,492 39 years
2052 621,492 40 years
2057 652,053 40 years
2062 681,187 41 years Canberra displays the greatest strength over
the longer term
Canberra has one of the fastest growing
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
couples calling the capital home. The table below
shows the most recent percentage of population
growth for Australia and the capital cities.
5
3 PROPERT Y GROUP
INVEST IN THE
MOLONGLO VALLEY
LOCATED 14-MINUTES WEST OF THE CANBERR A CBD AND 15-MINUTES SOUTH OF THE
BELCONNEN CBD, THE MOLONGLO VALLEY IS BORDERED BY DUFFY AND HOLDER IN THE
SOUTH, MOUNT STROMLO TO THE WEST, THE K AMA AND LOWER MOLONGLO NATURE
RESERVES IN THE NORTH AND MOLONGLO IN THE EAST.
Over the last two years the Molonglo region The demographic profile of the area reflects
WRIGHT DENMAN PROSPECT COOMBS AREA PROFILE
population has grown by 81.1%, from 3,228 in young families with high household incomes,
2015 to 5,847 in 2017. This growth was largely who are buying their own homes.
driven by the suburb of Wright.
Population growth
The region of Wright/Denman Prospect/ ACT Treasury predicts Canberra’s population
Coombs is experiencing significant population will grow by 31,585 residents by 2022 and more
growth due to its popularity as a premium infill than 13,000 of this population growth will be
area. Projected population growth is 13.1% or choosing to call Wright home.
2,892 residents annual.
WRIGHT/ WRIGHT/DENMAN
DENMAN PROSPECT/ PROSPECT/COOMBS
COOMBS POPULATION
POPULATION WILL INCREASE
TO OVER
5,847 200%
© MACRO PL AN DIMASO
Demand Transport & Infrastructure
With population growth comes demand for To accommodate the vast population growth in
new homes. The demand in the Molonglo the Molonglo Valley, there is a 10,600 (square
Valley and the suburbs of Wright, Denman foot/metre?) retail floorspace planned. This
Prospect & Coombs has been significant will include a Woolworths and ALDI amongst
and will result in a shortfall in supply in the 37 other speciality shops.
coming years. 1096 homes have currently
Located in the centre of Woden, an 11-minute
been approved to be delivered by 2023 which
drive from the Wright – Denman Prospect -
is a significant shortfall when compared to
Coombs area, is Westfield Woden. This major
population growth in the region.
regional centre offers 64,100m2 of retail
space including major retailers such as David
Location
Jones, Woolworths, Big W, Coles and JB Hi-Fi.
The Molonglo Valley is very well-known for an The centre also has 198 specialty stores.
outdoors focus, which attracts a significant
There are four bus routes that run through the
amount of people to the region, including
centre of the area: 83, 182, 783 and 983.
INVEST IN THE MOLONGLO VALLEY
the 167,000 that attend events or visit Mount
Stromlo Forest Park – a purpose-built outdoor John Gorton Drive runs through the centre of
recreation facility. the area, providing access to the Canberra CBD
in the east and the University of Canberra/
Beyond the suburb, Wright/Denman Prospect/
Belconnen CBD in the north.
Coombs is very close to the geographical
centre of Canberra and is 10-15 minutes to
Education
major locations of interest, including Woden
Town Centre, Canberra City Centre, Canberra Within a five minute drive from the area there
Hospital, Calvary Hospital, University of are five schools including the Charles Weston
Canberra Hospital, Australian National School, Duffy Primary School, St Jude’s
University, University of Canberra and School, Orana Steiner School and Islamic
Canberra’s International Airport. School of Canberra. In the surrounding
suburbs there are an additional five schools.
Liveability & Leisure
The University of Canberra (UC) Belconnen
The Molonglo Valley is a sought-after campus is a 15-minute drive from the area
destination for families and those seeking and the Australian National University (ANU)
a lifestyle based around recreation, health Woden Valley campus is a 12-minute drive.
and fitness. The area is a five-minute drive
Canberra Institute of Technology is an
away from Mount Stromlo where visitors can
11-minute drive from the Wright – Denman
enjoy hiking, bird-watching, mountain biking,
Prospect - Coombs area.
swimming and bush walking. Furthermore the
Mount Stromlo Observatory offers visitors an
interactive astronomy exhibit and stunning Investment
Annual Property
Median DataMedian
For All Houses
Rental
Growth Price Rent Yield
views across Canberra. Close by are the 5.8% $794K $740/wk 4.8%
Forest Park Riding and Equitation School,
National Zoo and Aquarium and National
Arboretum. Investment Property Data For All Units
Annual Median Median Rental
Growth Price Rent Yield
2.9% $391K $450/wk 6.0%
7
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
WRIGHT DENMAN PROSPECT COOMBS AREA PROFILE
your energy costs and reduces the impact 3 Property Group homes have on the environment.
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, you have the capability to
master virtually any device system or appliance within your property with one control.
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, Denman Prospect and Coombs, 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/COOMBS3 PROPERT Y GROUP
POPULATION
GROWTH
STRONG POPUL ATION GROW TH IS EVIDENT IN THE MOLONGLO AREA – A POPUL AR NEW INFILL
AREA FOR CANBERRANS, THIS GROW TH IS L ARGELY DRIVEN BY THE SUBURB OF WRIGHT.
The population in the region of Molonglo is Historical population is sourced from the
currently 5,847 and has grown by 81.1 in two Australian Bureau of Statistics Estimated
years. ACT Treasury projections expect the Resident Population and the projections are
WRIGHT DENMAN PROSPECT COOMBS AREA PROFILE
area to see an additional 54,951 residents by derived from the growth rate for the Cotter
2036 taking the population of this region to – Namadgi Statistical Area 3 produced by the
60,798. This is an average annual growth of ACT Government Treasury.
13.1%.
Historical and forecast population – Molonglo region, 2015 - 2036
70,000 50%
45%
60,000
40%
50,000 35%
30%
40,000
25%
30,000
20%
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 )
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 DIMASOThe 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
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
below zero over up until 2016.
Regional population growth context
DETAILED INVESTMENTANALYSIS WRIGHT/DENMAN PROSPECT/COOMBS
8000
6000
4000
2000
0
-2000
-4000
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
Source: Australian Bureau of Statistics, Cat. no. 3101 – Australian Demographic Statistics
133 PROPERT Y GROUP
DEMOGRAPHICS
THE DEMOGR APHIC PROFILE OF THE AREA REFLECTS YOUNG FAMILIES WITH HIGH
HOUSEHOLD INCOMES WHO ARE BUYING THEIR OWN HOMES.
In 2016, the median age of residents in the area was 30, significantly lower than the territory
median age of 35. Couple families with and without children are the dominant household types at
29.3 and 29.4%. Personal and household incomes are above average.
AGE STRUCTURE
WRIGHT DENMAN PROSPECT COOMBS AREA PROFILE
The median age in the Wright, Denman Prospect & Coombs area is 30, significantly younger than
the territory 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.
Age structure in ACT and Wright/Denman Prospect/Coombs
33.1%
35%
30%
25%
18.3%
20%
9.1%
15%
9.9%
9.0% 5.6%
8.3%
10%
2.6%
3.0%
0.9%
5%
0.3%
0%
0- 4
85+
5-14
15-19
20-24
25-34
35-44
45-54
55-64
65-74
75-84
ACT Molongo Valley
Source: Australian Bureau of Statistics – Census 2016, MacroPlan Dimasi
© MACRO PL AN DIMASOINCOME
Median personal and household incomes in Income in ACT and Wright/Denman Prospect/
the area at $1,366 and $2,780 per week are Coombs
higher than the ACT averages of $998 and
WRIGHT-
$2,445 respectively. DENMAN
INCOME ACT
PROSPECT-
COOMBS
Household expenses are moderately higher
Median personal $1,366 $998
for renters and lower for mortgage payers weekly income
compared to the ACT. The median weekly rent Median family $2,780 $2,445
weekly income
is $400 while the median monthly mortgage Median household $2,323 $2,070
DETAILED INVESTMENTANALYSIS WRIGHT/DENMAN PROSPECT/COOMBS
weekly income
repayment is $1,950 in the area compared to
the ACT at $380 and $2,058 respectively. HOUSEHOLD EXPENSES
Median weekly rent $400 $380
Median monthly
mortgage repayments $1950 $2,058
Source: Australian Bureau of Statistics – Census 2016,
MacroPlan Dimasi
HOUSEHOLD COMPOSITION
The average household size in the area was 2.3 Household composition in ACT and Wright/
people in 2016, compared with the ACT at 2.5. Denman Prospect/Coombs
Family households represent 65.9% of all 45%
40%
households in the area, driven almost equally 35%
by couple families with and without children 30%
33.2%
25%
29.4%
29.3%
26.6%
(29.3% and 29.4%). This compares with the 20%
15%
ACT where family households represent 70.7%
10%
12.1%
9.8%
10.7%
of all households. 5% 5.9% 1.6% 1.0%
0%
Lone person households represent 12.1% of all
households in the area compared to the ACT
at 10.7%.
Molongo Valley
Source: Australian Bureau of Statistics – Census 2016,
MacroPlan Dimasi
153 PROPERT Y GROUP © MACRO PL AN DIMASO
17
3 PROPERT Y GROUP
TENURE AND
TYPOLOGY
HOUSING TENURE
Home ownership in the area at 77.8% is Housing tenure in ACT and Wright/
significantly higher than the average for the Denman Prospect/Coombs
ACT at 66.9%.
80%
70.8%
WRIGHT DENMAN PROSPECT COOMBS AREA PROFILE
The difference is largely driven by a relatively 70%
60%
a high proportion of dwellings purchased with
50%
a mortgage at 70.8% compared with the ACT 39.3%
40%
32.5%
at 39.3%. 30%
27.6%
21.4%
20%
Renters made up just 21.4% of dwellings 7.0%
10%
compared to the ACT average of 32.5%. 0%
Molongo Valley
Source: Australian Bureau of Statistics – Census 2016,
MacroPlan Dimasi
HOUSING TYPOLOGY
Apartments and units dominate the market in Housing Typology in ACT and Wright/
the area at 49.6% of all dwellings in the area, Denman Prospect/Coombs
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%
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%
Molongo Valley
Source: Australian Bureau of Statistics – Census 2016,
MacroPlan Dimasi
© MACRO PL AN DIMASOHOUSE PRICES AND
RENTAL YIELDS
DWELLING PRICES AND SALES VOLUMES
Sales prices in the 2611 postal area were Sales rates grew substantially in 2013,
DETAILED INVESTMENTANALYSIS WRIGHT/DENMAN PROSPECT/COOMBS
steady over the period 2010 to 2013, but reflecting the initial development of the
the number of sales increased. Prices then area. Since then annual sales have declined,
recovered in 2016 and have remained stable in line with the decline of available land and
since. In 2018 year to date the median sale dwellings.
price was $668,750, an average annual growth
Lot sizes have declined slightly over the period
of 2.5% over the period 2010 – 2018 Y TD.
from an average 900m2 in 2010 to 794m2 in
2018 Y TD.
Postal area 2611 dwelling sale prices and volume, 2010- 2018
$800,000 450
$700,000 422 422 400
390
350
$600,000
344 336 300
$500,000
274 250
$400,000 256
200
$300,000
182 184 150
$200,000
100
$100,000 50
$0 0
2010 2011 2012 2013 2014 2015 2016 2017 2018
Source: SQM Research
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 declined by an from 2010 to 2015, this reflects the initial
average annual of 1.4%, while yields for units establishment of the Wright, Denman Prospect
have grown over the period, at an average & Coombs area and over the last three years
annual of 6.1%. the number 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 COOMBS 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 DIMASO21
3 PROPERT Y GROUP
FUTURE RESIDENTIAL
SUPPLY AND
INFRASTRUCTURE
RESIDENTIAL PROJECTS – FUTURE SUPPLY
As of August 2018, there are 26 residential Future pipeline of residential projects
WRIGHT DENMAN PROSPECT COOMBS AREA PROFILE
projects in the Wright – Denman Prospect -
600
Coombs area according to data from Cordell 53 1
Connect. If completed these projects will 500
deliver an additional 1,096 dwellings by 2023.
400
The figure on the right illustrates the number
300
of dwellings that will be delivered if all
projects are completed as expected. 200
13 9 16 3
12 3
90
100
16
0
2018 2019 2020 2021 2022 2023
Source: Cordell Connect, 2018
DWELLING APPROVALS
The average number of approvals per year Other residential dwellings dominated the
over the period 2012 to 2017 was 107. There market up to 2015.
was a reduction in the number of dwelling
Y TD approvals for 2018 indicate other
approvals in 2014 to 181 from 584. Over the
residential dwellings are again driving the
last three years the number of approvals has
market at 60.5% of all approvals.
recovered slightly up to 129 in 2018 (Y TD).
T he additional dwellings added to the
mar ket over the period was made up of 750
or 4 3.6% houses and 972 or 56.4% other
r esidential dwellings.
© MACRO PL AN DIMASORESIDENTIAL PROJECTS – REGIONAL SUPPLY
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
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
DETAILED INVESTMENTANALYSIS WRIGHT/DENMAN PROSPECT/COOMBS
3,850
land servicing. 7.0%
3,800
3,750
The ACT Land Agency has also released
2017-18 2018-19 2019-20 2020-21
englobo land for up to 600 dwellings in
Denman Prospect.
Source: Cordell Connect, 2018
This higher level of activity is partly the
result of an increase in planning activity in
the inner north that occurred in 2015 after the
Government committed to light rail.
In Weston, just five minutes south of the
Wright – Denman Prospect - Coombs area, is
MAJOR DEVELOPMENTS
the Weston Neighbourhood Centre supporting
Between 2017-18 and 2018-19 the Government 10,600m2 of retail floorspace, including a
is investing $1.7 billion in physical and digital Woolworths, 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 -
respectively.
Coombs area, is Westfield Woden. This major
Planning and design is underway for the regional centre offers 64,100 m2 of retail
Molonglo Valley commercial centre and space including major retailers such as David
immediate surrounding residential area, which Jones, Woolworths, Big W, Coles and JB Hi-Fi.
aims to accommodate 7,000-9,000 people of The centre also has 198 specialty stores.
the total 18,000 anticipated for stage 2.
INFRASTRUCTURE
John Gorton Drive runs through the centre of
the area, providing access to the Canberra CBD
in the east and the University of Canberra/
Belconnen CBD in the north.
233 PROPERT Y GROUP
WRIGHT
DENMAN PROSPECT
COOMBS
AREA PROFILE
FOR MORE INFORMATION CONTACT OUR OFFICE ON (02) 6112 8519
OR HEAD TO 3PROPERT YGROUP.COM.AU
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