Townsville Insight April 2015 Research
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RESEARCH & CONSULTING Key Findings Population growth across Townsville expected to average 5,350 persons per annum between 2013 and 2031 Gross Regional Product (GRP) was estimated to be $10.76 billion as at 2013, 40% above the next largest major North Qld centre Industry diversity, government investment Alongside the PDA declaration is renewed and major transport infrastructure underpin optimism surrounding the building of a new Diverse economy - no single Townsville’s role as the commercial and integrated entertainment and stadium facility, industry contributed more than services hub for North Queensland’s 13% to the region. Notable after an initial $100 million contribution from industries include Rental, hiring & minerals, agriculture, tourism and tropical the Queensland Government. There is also real estate services (12%) and science sectors, according to the most restored confidence around employment as Public administration & safety (11%) recent Townsville City Economic a consequence of a proposed $450 million Development Plan 2013-2017. regional jobs package. Townsville has the largest Government presence in North Following a period of instability and The three newest commercial office Queensland - 18,895 Government uncertainty in the run-up to the Queensland employees working across Local, buildings in Townsville (completed in 2013) State Election, there is renewed hope that a State and Federal agencies record vacancy at just under 8% (1,639m²). sustained economic recovery will develop on alongside a further 18,000 defence While vacancy rates exceed this in the back of new infrastructure commitments. personnel and their dependents commercial CBD buildings across the wider Building quality is very important market, incentives for the adaptive reuse, The declaration of the Townsville City to occupiers - vacancy rates in and the first wave of Council employees Waterfront Priority Development Area (PDA) office assets with NABERS rates of moving into the CBD from suburban areas, on 5 September 2014, will go someway to 4 stars and lower is currently represents positive resurgent steps to improving and promoting the heart of 33.4%, compared with 17.6% for increasing occupancy and vibrancy in the those rated as 5 star Townsville. The PDA covers approximately CBD. As Townsville will have little new office 97.2 hectares, incorporating land on both Residential apartment market is development, the steadily reducing level of sides of Ross Creek and is within the improving in response to more supply, especially in premium rated Townsville Central Business District (CBD), positive sentiment - Over the three buildings, will start to reflect future office months to Dec 2014, median with a main aim to focus, facilitate and rental increases. apartment prices grew 15.2% accelerate economic growth. 1 Page 1. Key Findings Market overview and future trends Townsville is centrally located in terms of Townsville is also a strategic base for the Page 2. Queensland’s (Qld) economic zones for Australian Defence Force with permanent Introduction minerals, agriculture, tourism and coal. It forces located at Lavarack Barracks and Townsville in context also has growth potential in the areas of the Royal Australian Air Force (RAAF) Base Townsville. Known as Australia’s largest Page 3 & 4. tropical research, science and health Future Growth Drivers expertise, and clean energy. garrison city, Townsville has played a Highlighting Townsville's growth significant role in the Australian Defence position through government Additionally, as highlighted within the Force since World War 1. Townsville is strategy, planning, infrastructure Townsville City Economic Development home to around 18,000 defence personnel and jobs Plan 2013-2017, Townsville’s location and their dependents, making up almost close to Papua New Guinea, Asia and the 10% of the total population. Page 5, 6 & 7. Pacific makes it a natural value-adding, Office Market services and distribution point. Port Townsville’s estimated residential Economic, employment and office facilities and high-capacity rail, airport population was 192,038 as of June 2014, market trends and road networks connect the city and making it the largest city in North Queensland and Northern Australia, and Page 7. the region to national and international Residential Investment markets. Townsville is the focus for the sixth largest LGA in Qld. Townsville’s Prospects for residential warehousing, retail, manufacturing, health population has grown rapidly over the past development are improving as care, education and research. ten years, increasing at an average of apartment values and demand 2.4% per annum. Over the next 20 years, increase Furthermore, in a boost to northern Townsville is projected to experience Australia, from 1 March 2015, Townsville average population growth of 2.3% per airport will be able to support regular annum, significantly above Cairns, international flights. Increased visitor Brisbane and Queensland (see Figure 1). numbers will boost the tourism and associated industries in Townsville and Even in the face of global uncertainty, beyond. By making Townsville a gateway Townsville’s economy has enjoyed recent into Australia it will also encourage growth with its performance supported by businesses to invest and will help to significant industry diversity. Between unlock the region’s full potential. 2006 and 2013, Townsville’s economy Queensland Airports Ltd has already experienced an average annual growth commenced talks to secure the first rate of 5.8%, considerably above Qld’s international air service into Townsville. Gross State Product (GSP) growth rate of Annual Projected Population Growth 3.1% per annum for the same period. Rates 2011 - 2031 2.40% 2.33% 2.20% 2.01% 2.00% 1.98% 1.92% 1.80% 1.60% TOWNSVILLE CAIRNS BRISBANE QUEENSLAND 2 TOWNSVILLE INSIGHT APRIL 2015 RESEARCH new research and business solutions to international students also increased by the challenges of development and 62%. Of the 16,000 full time JCU students sustainable living in the tropics. and 3,500 staff nationwide, around 75% are based in Townsville, with many As a well-serviced centre of the tropics, JCU’s Townsville campus is a major students now located within the new City with national and international access, economic driving force of the Townsville Campus. Townsville is an increasingly preferred LGA contributing 5.24% of the region’s location for specialised industry and employment. Furthermore, 4.43% of Defence professionals. The city’s relatively large Townsville’s GRP was derived from the population, combined with that of nearby direct and flow on activities of JCU In addition to education, defence has regional centres, provides a sufficiently according to the JCU Economic Impact long been one of the key contributors to large market to support a range of Report 2012. The Academic Ranking of Townsville’s growth and economic business enterprises that would otherwise World Universities (ARWU) positions JCU, diversity. With the increasing importance be expected to operate from South East as a whole, in the top 4% of the world’s of Townsville’s defence facilities and Queensland. tertiary institutions, a ranking which infrastructure, there is an opportunity for supported growth in student numbers at business and industry to be identified, The latest Development Status Report it’s campuses by 42% over the past five developed and encouraged to participate (August 2014) reveals that the Townsville years. During the same period full time in associated defence services and supply. and North Queensland area has over $77 billion worth of projects within its development pipeline. This includes $9bn underway, $52bn approved and waiting to Townsville’s Strategic Location start and another $16bn proposed. Townsville's position makes it a natural value-adding, services and distribution point Townsville City itself has strong linkages to the region’s natural resources, including: mining, coal and coal seam gas deposits, cattle, sugar cane, horticultural products and fisheries within the Great Barrier Reef. Education As a result, Townsville has great potential in the areas of tropical science, health and sustainable industries, especially as it is home to leading institutions like the James Cook University (JCU) and the Australian Institute of Marine Science. It is ideally located to play a leading role in developing James Cook University Students Total full time numbers, all JCU campuses 18,000 45% 16,000 40% 14,000 35% 12,000 30% 10,000 25% 8,000 20% 6,000 15% 4,000 10% 2,000 5% 0 0% TOTAL STUDENTS INTERNATIONAL STUDENTS AS A % OF TOTAL (RHS) 3 Population Growth by Age, Townsville LGA Growth Age Cohort 2008 2013 2013 % % Growth p.a. Local Market (2008-2013) Demographics 0-19 49,094 53,597 28.3% 4,503 1.8% 20-39 40,348 45,944 24.3% 5,596 2.6% Townsville has been one of the fastest 40-54 36,801 38,994 20.6% 2,193 1.2% growing LGAs within Queensland over 55-64 26,731 31,357 16.6% 4,626 3.2% the past decade which has come in response to solid economic conditions, 65+ 15,529 19,346 10.2% 3,817 4.5% particularly up until 2012. An uplift in the Total 168,503 189,238 20,735 2.3% region’s key employing industries of defence, public administration, education Source: ABS, Knight Frank and health care meant that population growth has stemmed from incoming been the backbone of recent population nine year low in net overseas migration. skilled workers. At the same time, growth. According to the 2011 Census, Over the 12 months to June 2014, resilient demand from domestic and population growth from overseas population growth in Townsville eased to overseas students attending the James migrants between the two most recent 1.6%, remaining above the Qld average Cook University has propelled population Census periods (2006 & 2011) totalled of 1.5% for the period. However, looking growth in younger age cohorts. 7,482 persons, of which 44% were aged forward the prospects for population between 20-34.