albury-wodonga - Drummond Real Estate

ALBURY-WODONGA
Location Report
A report jointly published by
and
For more information, contact:
Peter Drummond
Drummond Real Estate
588 Stanley Street
Albury NSW 2640
Ph: (02) 6041 5755
www.drummondrealestate.com.au
[email protected]
ALBURY-WODONGA
NSW-VIC border
HIGHLIGHTS
• 2nd largest inland city in NSW
• Highly strategic location
• Plans for new town of 35,000
• Affordable real estate
• $1 billion in developments
Suburb houses
Lavington
North Albury
Springdale Hts
Typical
prices
$241,000
$220,000
$238,000
Suburb houses
•
•
Steady population growth
Strong diverse economy:
Manufacturing, agriculture,
tourism, education, defence,
medical services.
Typical
prices
Thurgoona
$345,000
West Wodonga $295,000
Wodonga
$287,000
Suburb units
Lavington
W Wodonga
Wodonga
Typical
prices
$152,000
$190,000
$180,000
The Albury-Wodonga region has been dubbed The Murray Food Bowl but,
unusuallyforanAustralianinlandcity,itisnotdependentonagriculturefor
thehealthofitseconomy.
The twin cities have strong sectors in manufacturing, construction,
government administration, education, defence and retail. Many national
businesses,aswellastheAustralianTaxationOffice,arebasedthere.
Alburyisagrowthcentreservingaregionthatisrichincrops,cattle,wine
and history. Wodonga, once considered the poor cousin to Albury, is
growingstronglyandisavenuefornewdevelopment.
Albury-Wodonga appeals as one of Australia’s strongest regional economies, with great diversity
and the presence of numerous national and international businesses, attracted by its strategic
locationandgoodrailandroadlinks.
Salesactivityhasincreasedrecently,pointingtopricegrowthinthenearfuture.
Location
•
•
•
•
325kmnorth-eastofMelbourne,350kmfromCanberra
AtthecentreoftheMelbourne–Sydney–Canberratriangle
OntheVictoriaandNewSouthWalesborder
LGAs:AlburyCityCouncilandWodongaCityCouncil.
Economy and Amenities
AlthoughAlbury-Wodongainmanyways
operates as one community, it has
separatecouncilsandStateGovernment
services. However, the fact that
Melbourne is significantly closer than
Sydney, and Victorian TV broadcasts in
the region, gives Albury close links to
Victoria,despitebeinginsouthernNSW.
•
•
•
•
POPULATION & DEMOGRAPHICS:
Population 2011: 83,000 (Census)
Population 2014: 93,000 (estimate)
Population 2031: 123,500 (projected)
Services a regional population of 170,000
Source: ABS
State differences in the workings of stamp duty, payroll tax and workers' compensation schemes
causefrustration-andtradespeopleneedduallicences.
Albury-Wodonga is one of Australia’s largest
Residential & Commercial Construction:
regional centres and has a diverse economy.
$358 million - Construction 2015
Major enterprises include manufacturing, retail,
$320 million - Construction 2014
transport,businessservicesandagriculture.
$129 million - Construction 2013
Source: ABS
The diversity and the strength of multiple
economic sectors give solidity to the Albury-Wodonga economy. “Instead of having peaks and
troughs, we tend to have waves,” says Albury City's director of economic development Tracey
Squire.
The Border Mail reported in June 2014 that Wodonga has the highest median weekly household
income in regional Victoria (estimated at $1,075). It said total retail spending for Wodonga’s
catchmentareawasprojectedtoincreasefrom$587millionin2013to$990millionby2026.
Albury-Wodonga is well situated to service other
regions, with extensive transport infrastructure
radiatingoutwardsbyroad,railandair.
By road, Albury-Wodonga is three hours from
bothMelbourneandCanberra,andsixhoursfrom
Sydney via the Hume Highway. By rail, AlburyWodongaisonthemainraillinebetweenSydney
andMelbourneforpassengerandfreighttrains.
AIRPORT: FAST FACTS
Third busiest airport in Regional NSW.
250,000 passengers per year.
180 flights per week.
Sydney:
90 minutes.
Melbourne: 45 minutes.
WeeklyrailservicesfromAlburytoBrisbanemove100,000tonnesoffreightannuallyfromthree
major locally-based manufacturers: Mountain H20, Norske Skog and Mars Petcare. The hub also
operatesafreightserviceforimportandexportproductsbetweenAlburyandMelbourne.
Thisconnectivityisamajorreasonwhysomanynationalenterpriseshaveamajorpresenceinthe
region. They include Bunnings (two big warehouses), Overall Forge (major supplier to the mining
industry), Norske Skog (produces 40% of the nation’s newsprint), Bradken Industrial, Visy Board
(papermanufacturers)andVisyFood,MarsPetcare,Kimberley-Clark(healthandhygieneproducts
soldin80countries)andtheATO(whichemploys1,260peopleinAlbury-Wodonga).
The city also has several major trucking businesses, including Border Express, Twin City Truck
Centre and the Albury Freight Distribution Centre. Blacklocks Ford announced in June 2013 an
expansionwitha$4milliontruckcentreunderconstruction.
Quest Apartments, which services demand from business
travellers, now has three serviced apartment complexes in
Albury-Wodonga.
Recently-completedcommercialpremisesincludea$50million
HQfortheAustralianTaxOfficeinAlbury;a$10million,threestorey Bethany office building in the CBD; and North Point
Tower, a $10 million, five-storey commercial development in
Lavington.
Theregionhas32pre-schools,50primaryschools(38public,12private),24secondaryschools(16
public,eightprivate),aCommunityEducationCentreforadultlearning,twoTAFEcampusesanda
campusoftheUNSWRuralClinicalSchoolofMedicinenexttotheAlburyBaseHospital.
CharlesSturtUniversity(CSU)relocatedtoapurpose-builtcampusatThurgoonain2009. CSUhas
3,500studentsenrolledandrecentlycompleteda$27millionexpansion.LaTrobeUniversityalso
hasanAlbury-Wodongacampus.
TheBorder’slargestemployerisAlburyWodongaHealth,with1,140staffandanannualbudgetof
$180million.
TheAlburyBaseHospitalisthecity’slargestemployerandtheAlburyWodongaPrivateHospital,
owned and operated by Ramsay Health Care, is regarded as one of the best private hospitals in
ruralAustralia.
Over 1 million day-trippers visited Albury-Wodonga in 2014, injecting $751 million into the local
economy. They enjoyed sights such as Wodonga’s Sumsion Gardens, the 1887 Albury Botanic
Gardens, Noreuil Park on the banks of the Murray River, the Wonga Wetlands, Mungabareena
ReserveandtheBogongMothFestival.KeyrecreationalfeaturesincludeLakeHume,theMurray
Riverandskifields(abouttwohours’drivefromAlbury-Wodonga).
ThereisalsotheWodongaAquaticVenueandExerciseSpacewhichoffersa50metrepool,water
slide,playareaandpavilion.Itwascompletedin2013atacostof$9million.
Albury
Albury'seconomyisdominatedbymanufacturing,construction,businessandpropertyservicesand
retail.This diversity makes for consistent business conditions. Albury serves as an administrative
centre for the agricultural sector and is home of the Norske Skog newsprint paper mill which
processesthepinelogsplantedinthemountainstotheeast.
The Australian Taxation Office, the Commercial Club Albury, Hume Building Society, Apex Tool
Group, Geofabrics Australasia, Joss Group and Zauner Construction are major employers in the
region.TheAustralianpizzachainEagleBoyswasfoundedinAlbury.
Wodonga
Historically Wodonga was regarded as the smaller, less prosperous cousin to Albury (once
commonly referred to as 'Struggle Town'). While still smaller than Albury, economic growth has
softenedsuchdistinctions.
OneprojectpavingthewayforeconomicprosperityisLogicWodonga,amajorlogisticsdistribution
hubwhichhousesavarietyofbusinesses:
1. The$90millionWoolworthsRegionalDistributionCentreatLogicemploys400peopleand
turnsover$2billionofstockeveryyear.
2. BorderExpress,whichdistributesfreightnationwide,hasa$5millionwarehouseatLogic.
3. WodongaTAFEhasacampusatLogic.Itrecentlyunderwenta$12millionexpansion.
4. A$16millionServiceCentre,FatigueManagementCentreandTrailerInterchangeopened
atLogicinAugust,2014,creating80jobsintheprocess.
CopeSensitiveFreight,amajortransporterofmedicalandelectronicsgoods,hasaplanningpermit
approvedforan8,000m²warehouseatLogic.AccordingtoTheBorderMailinDecember2014,SCT
Logisticsalsoproposestospend$30milliononestablishingsitesatWodongaandAltona.
OthermajorindustriesbasedinWodongaincludealargecattlemarket,apetfoodfactory(Mars
Corporation,whichhasitnationalcorporateHQhere),acardboardboxfactory(Visy),anabattoir
andafoundry.
Wodongaalsoservesasacentralpointforthedeliveryofgovernmentservicestotheregion.One
exampleisthe$9millionNorthEastWaterRegionalOfficeWodongaprojectwhichwascompleted
in2013.Around600contractorsworkedontheproject.
WodongaisthesiteofLatchfordBarracks,anAustralianArmylogisticsbaseandatrainingcentre
forarmyapprentices.ItishasaLaTrobeUniversitycampusandWodongaInstituteofTAFE.
The Bandiana Army Museum, located just out of Wodonga, is oneof the largest and most
diversifiedarmymuseumsinAustralia.
AnotherattractionistheWodongaArtCommunityEntertainmentCentre,calledTheCube,which
canaccommodateupto1,000peopleforfunctionsandshows.Itwascompletedin2012atacost
of$12million.
ThereisextensivenewpropertydevelopmentonformerarmylandintheWodongaarea,including
residentialestatesandretailwarehouses.
The region includes Lake Hume Dam (completed in 1936, when it was the largest dam in the
SouthernHemisphere).
Property Profile
Albury-Wodonga presents as a city with affordable property
options. Median house prices are generally in the $200,000s,
exceptfortheareaswithnewhousingestates.(Muchofthenew
housinghappensontheWodongasideoftheborder.)
Residentialapprovals
2012:548
2013:482
2014:699
2015:859
Source:ABS
Rental yields hover around 6%, with five suburbs producing
median rental yields of 6% or higher, according to Australian
PropertyMonitors’data.ThesuburbofAlburyisanexceptionwithamedianrentalyieldof4.5%.
During 2014 and early 2015,
therewasgrowthinthenumber
of house sales, leading to good
price rises in some suburbs,
including
Albury
(19%),
Springdale Heights (16%) and
WestAlbury(10%).
Vacancies:AlburyWodonga
Postcode
Suburbs
Vacancyrate
2640
Albury–North,South,West;&Thurgoona
3.9%
2641
Lavington,SpringdaleHeights
3.3%
3690
Wodonga
1.8%
3691
Baranduda
1.2%
Source:sqmresearch.com.au
Thereisconsiderablenewdevelopmentintheregion,withnumerousresidentialestatesinvarious
stagesofdevelopment.Supplyappearstobeinconcertwithdemandinmostpartofthismarket,
although vacancies in postcode 2640 are currently close to 4%. Given the increase in residential
buildingapprovalsinthepasttwoyears,investorsneedtokeepaneyeonvacancyrates.
TheAlbury-Wodongapropertymarketcanbesummarisedasfollows:-
Houses
Albury
Baranduda
Lavington
NorthAlbury
SouthAlbury
SpringdaleHts
Thurgoona
WestAlbury
WestWodonga
Wodonga
No.ofsales
97
28
211
140
21
44
133
65
251
381
Medianprice 12mthgrowth Growthaverage Yields
$453,000
19%
3%
4.5%
$337,000
-5%
2%
5.6%
$241,000
2%
1%
6.2%
$220,000
1%
2%
6.7%
$270,000
7%
2%
5.8%
$238,000
18%
3%
6.5%
$345,000
5%
4%
5.6%
$320,000
10%
2%
6.1%
$295,000
5%
2%
5.8%
$287,000
1%
3%
6.0%
Source: APM – “growth average” is the average annual growth in median house prices over the past 10 years
“snr”: statistically not reliable
Units
Albury
Lavington
WestWodonga
Wodonga
No.ofsales
36
59
17
30
Medianprice
$241,000
$152,000
$190,000
$180,000
12mthgrowth
-12%
2%
snr
-11%
Growthaverage
2%
2%
1%
1%
Yields
5.3%
6.6%
5.9%
6.3%
Source:APM–“growthaverage”istheaverageannualgrowthinmedianhousepricesoverthepast10years
“snr”:statisticallynotreliable.
Future Prospects
Severallargescaleprojectsbeganin2014,givingAlburyWodonga a construction boom. Construction employs
about2,300peopleinAlbury-Wodonga-andthefigure
isexpectedtoriseinthenextfewyears.
CORE INFLUENCES:
Urban Renewal, Transport
Infrastructure, Boom Towns.
Among the projects in the pipeline are the AlburyWodonga Regional Cancer Centre, an ambulance station in Lavington, student accommodation at
CharlesSturtUniversity,multipleindustrialwarehousesandseveralsub-divisions.
New homes are being built in the growth areas of Thurgoona, Hamilton Valley and Springdale
HeightswiththeAlburyCouncilencouragingdevelopersbyremovingredtapeforsub-divisions.
A residential area is planned for the Felltimber master-planned community precinct, which was
approvedbytheCouncilinFebruary2014.
-Baranduda&Leneva
Anurbangrowthzoneallowingfor14,000homestohouse35,000peopleinLenevaandBaranduda
was announced by Wodonga Council in August 2014. The proposal requires amendments to the
WodongaPlanningSchemeandapprovalfromtheStateGovernment.
Theurbangrowthzonecovers500haoflandzonedasfarmingandarurallivingzoneofabout94ha.
Itisexpectedtotake12-18monthstoplanandultimatelywillcreate6,000jobs.
Planners from RPS consulting said as many as nine new primary schools and five new secondary
schoolswouldbeneededtocopewithgrowthintheregion.Theypredictedaneedforthreenew
shoppingandbusinessprecincts,andatleastonenewsportsground,pluswalkingtrails,bikepaths
andparks.
-Military
Bandiana’smilitarywarehouses werehandedovertoLinfoxinJune2014aspartofa$416million
seven-yearcontractwiththeDefenceDepartment.Linfoxwillhandlewarehousinganddistribution
while Transfield will take over vehicle repair and maintenance facilities in a $240million contract
oversixyearsfromJuly2013.
Construction of a military warehouse at Bandiana is under way with funding for the $65million
projectconfirmedinthe2014FederalBudget.ItisbeingbuiltatWadsworthBarracksoppositethe
Bandianasaleyardsandispartofa$753milliondefencelogisticstransformationprogram.
-WodongaCBD
Wodonga’sCBDwillbedividedintofiveprecinctsandundergoamajorupgrade.Therevampwill
introduceanurbansquare,cafes,shops,hotel,residentialdevelopmentswhiletherailwaystation
hasbeenheritagelisted.
FAST FACTS:
One of the largest inland population
Theplanwouldcreateacommercialheart
centres in Australia.
for Wodonga, connecting the north and
Fastest growing regional city in Victoria.
south of the city. Part of the CBD
makeoveristhe$26millionJunctionPlace
development,anurbanrenewalprojectwhichwillseehistoricbuildingsrestored.Oncecomplete,
JunctionPlaceisexpectedtoprovide$350millionofadditionaleconomicactivityand1,300jobs.
-Railtransport
Thereistalkofa$114billionhigh-speedrailsystemlinkingBrisbane,SydneyandMelbourne.The
headoftheAustralasianRailwayAssociationhasindicateda$70millionstationinAlbury-Wodonga
isincludedintheproject.
IftheWodongaCouncilhasitsway,arailterminalwillalsobebuiltattheLogicindustrialhubto
servicethefreightneedsofLogic’stenants,whichincludeWoolworths.ReportsindicatetheCouncil
isinadvanceddiscussionswiththeVictoriangovernmentovertheidea.
-Agriculture
A study by Victoria University suggests agriculture and manufacturing in north-east Victoria will
boom by 2020. Modelling in the report indicates the Ovens-Murray food bowl will benefit from
Chinesedemand,whichinturnwilldrivethemanufacturingindustry.
-NBN
Albury-Wodongacanexpectaround24,000NBNconnectionsinlate2016.SuburbsincludeAlbury
central,WestAlbury,EastAlbury,SouthAlburyWodongaandMountBeauty.
RecommendedLocations
Often the best outcomes for investors are provided by locations which the locals regard as
downmarketorotherwiseundesirable.LavingtonisonesuchareainAlbury-Wodonga,oneofthe
cheapestsuburbs,withmanyold-styleflats.Itoffersattractiveaffordabilityandhighrentalreturns.
Typicalhousesarearound$241,000andunits$152,000,withrentalyieldsabove6%.
ProjectsexpectedtoimpactontheAlbury-Wodongaeconomyinclude:-
COMMERCIALDEVELOPMENTS-GENERAL
Project
Value
Status
Upgrade,Mulwala $386million
Underconstruction.
explosivesfactory Productionofshells
andbulletsforthe
FederalGovt
DefenceDept.
MannCentral
$65million
Approved.
ShoppingCentre, Anchortenantswillbe AktivPropertyboughtthe
Wodonga
KmartandColes,with sitefromtheMannfamily
40specialtyshops.
inAugust2015.
AktivProperty
NovotelHotel,
$30Million
Underconstruction.
SmollettSt,Albury 4.5starhotel,120
Expectedtoopenin2016.
rooms.
AccorGroup
CommercialClub
TBA
Proposed.
retirementvillage, 50apartmentstobe
Rezoningisrequired
Albury
builton1hacurrently beforetheDAcan
occupiedbytheclub’s proceed.
motel.
CitygateHoliday
$15million
Proposed.
Park,Lavington
120homesfor
Modifiedplanswerere
seniors.
presentedtoCouncilin
IngeniaGroup
July2014.
NexusIndustrial
$15million
Approved.
Hub&DaveyRd
($8mil–Nexus;$7mil Fundingtobesourced.
interchange
–DaveyRd)
upgrade
AlburyCouncil
TransportDepot, $3.7million
Proposed.
Ettamogah(Next
DAlodgedMay2015.
toNexusIndustrial
Hub)
PeterCremer
Woolworths
$20million
Proposed.
Wodongaupgrade
MountainH2O
$3million
Proposed.
DAlodgedNovember
ASAHIBeverages
2015.
Australia
Impact
Jobs:
200construction;
1,000operational.
Jobs:
200construction;
30operational.
Jobs:
1,000.
Jobs:
25.
RESIDENTIALDEVELOPMENTS
Project
Value
MurravaleEstate, TBA
Tangambalanga
300allotments.
Status
Approved.
ApprovedbytheCouncil
inOctober2014.
Underconstruction.
Impact
Underconstruction.
WhiteBoxRise
devt
AbacusGroup
ElmwoodEstate,
BeechwoodRoad,
Wodonga
BrendonCollins
RiverviewHeights
RiverviewTce,
Albury
Stargazer
residentialestate
Thurgoona
LavingtonNew
HousingEstate
Localbusiness
consortium
TBA
1,100residentiallots,
atowncentre,school,
supermarket.
TBA
130medium-density
houses,medical
centre,pharmacy,
café.
TBA
13townhouses.
GlenwoodEstate,
Baranduda
QODProperty
Group
WestmontAged
Care,Baranduda
expansion
Baranduda-Leneva
urban
development
TBA
Stage2,305lotson
90ha.
Proposed.
BoughtfromAlburyWodongaCorpinMarch
2012.HabitatPlanning
hassubmittedplansto
thecouncil.
Proposed.
Plansupforpublic
viewinginJuly2014.
$30million
110additionalunits.
Proposed.
Tobecompletedby2020.
TBA
14,000homes,shops,
offices.
Proposed.
$20million
68residentiallots.
$30million
69homes.
Proposed.
DrawingsrevealedinJune
2014.
Approved.
Jobs:
6,000.
INFRASTRUCTURE–HEALTHANDMEDICALFACILITIES
Project
Value
Status
Impact
Albury-Wodonga $70million
Underconstruction.
CancerCentre
Radiotherapyunits,
HansenYunckenisthe
oncology,pharmacy, appointedbuilder.
AlburyWodonga
30-bedinpatient
Health
ward.
INFRASTRUCTURE–SPORTANDENTERTAINMENT
Project
Value
Status
Impact
AlburyArtGallery $11million
Completed.
Economicbenefit:
upgrade
Increasedgallery
$28miland80,000
space,café.
visitorsannually.
BarandudaFields $20million
Proposed.
sportsprecinct,
Footballstadium,
Stage1:$10.4mil.
Baranduda
athleticstrack,cricket Stage2:$9.5mil.Council
ovals,soccerfields.
wasseekingfundingin
WodongaCouncil
June2015.
WodongaCinema $110million
Proposed.
JunctionPlace
Majorcinema
PlacesVictoriaseeking
complexona10ha
expressionsofinterest
PlacesVictoria
site.
fromcinemadevelopers.
WodongaGolf
TBA
Proposed.
Clubdevelopment Motel,functioncentre
andresidential.
INFRASTRUCTURE-EDUCATION
Project
Expansion,Trinity
Collegecampus,
Thurgoona
Value
$7million
Newbuildingtocater
forrisingenrolments
andreplaceportables.
Status
Proposed.
DAlodgedwithAlbury
CouncilOctober2014.
Impact
INFRASTRUCTURE–TRANSPORT
Project
AlburyAirport
upgrade
Upgrade,Riverina
Highway,eastof
Albury
StateGovt
UpgradetoHume
Dam,15meastof
Albury-Wodonga
Value
$5.4million
Upgradeofapronand
taxiway.
$11million
Upgrade5.7kmof
highwayin2stages.
Status
Underconstruction.
Impact
Underconstruction.
Stage1tobefinishedin
mid-2015;stage2in
2017.
$60million
Underconstruction.
Stages1and2complete.
Stage3under
construction.
Jobs:
40contractors.
Value
TBA
Explorationofcopper
andmolybdenum
(usedtomanufacture
steel).
Status
Proposed.
Undergoingaprefeasibilitystudyand
seekingfinancein
November2014.
Impact
Status
Underconstruction.
Impact
Underconstruction.
Jobs:
1,300.
Economicbenefit:
$350million.
RESOURCESSECTOR
Project
Unicornmining
exploration,
Corryong
DartMining
INFRASTRUCTURE–GENERAL
Project
Military
warehouse,
Bandiana
JunctionPlace
development,
WodongaCBD
Value
$65million
Formspartofa
defencelogistics
transformation
program.
$26million