Springwood Town Centre: Retail and Property Report

Transcription

Springwood Town Centre
Masterplan
Stage 1 Report: Retail Demand Assessment
and Property Market Appraisal
Prepared for Blue Mountains City Council
Final – October 2015
Springwood Town Centre Masterplan Stage 1 Report: Retail Demand Assessment and Property Market Appraisal
QUALITY ASSURANCE
Report Contacts
ANETA MICEVSKA
Bachelors of Psyc (Hons) and Commerce (Economics), AHPRA
Consultant
[email protected]
Supervisor
ADRIAN HACK
M. Land Econ. B.Town Planning (Hons). MPIA
Principal Urban and Retail Economics
[email protected].
Quality Control
This document is for discussion purposes only unless signed and
dated by a Principal of HillPDA.
Reviewed by:
Dated
1/10/15
Report Details
Job Ref No:
Version:
File Name:
Date Printed:
Ref: C15173
C15173
Final
Springwood Town Centre Revitalisation Project
1/10/2015
HillPDA Page 2 | 43
CONTENTS
Executive Summary ......................................................................................... 5
1
Introduction.............................................................................................. 7
2
Retail Trends............................................................................................. 9
3
Retail Floorspace Demand...................................................................... 14
Springwood Town Centre ....................................................................... 14
Competing Centres ................................................................................. 16
Springwood’s Trade Area ....................................................................... 20
Population Characteristics...................................................................... 22
Dwelling Characteristics ......................................................................... 24
Labour and Economic Indicators ............................................................ 26
Opportunities to Strengthen the Centre ................................................ 27
4
Market Research .................................................................................... 29
Retail and Commercial Market ............................................................... 34
Development Site Sales .......................................................................... 38
Development Pipeline ............................................................................ 38
TABLES
Table 1 - Springwood Town Centre Floorspace Survey’s 2007 and 2015 ...... 16
Table 2 - Population Size 2001 - 2011 ........................................................... 22
Table 3 - Non- School Qualification Education Attainment ........................... 23
Table 4 – Occupancy Rates 2001-2011 .......................................................... 24
Table 5 - Dwelling Tenure Type ..................................................................... 24
Table 6 Household Structure ......................................................................... 25
Table 7 Family Structure ................................................................................ 25
Table 8 - Weekly Household Income 2011 .................................................... 27
Table 9 - Median Sale Price for Single Detached Dwellings .......................... 30
Table 10 - Summary of Strata Unit Sales: Springwood .................................. 31
Table 11 - Detailed Analysis of Strata Unit Sales: Springwood ...................... 32
Table 12 - Detailed Analysis of Strata Unit Sales: Leura ................................ 33
Table 13 - Springwood Retail Leases ............................................................. 35
Table 14 - Springwood Commercial Leases ................................................... 36
Table 15 - Analysis of Shop front Sales .......................................................... 37
Table 16 – Development Site Sale ................................................................. 38
Table 17 – Development Pipeline: Retail Projects ......................................... 39
Ref: C15173
HillPDA Page 3 | 43
Table 18 - Development Pipeline: Office/Commercial Projects .................... 39
Table 19 - Development Pipeline: Residential Projects ................................. 40
FIGURES
Figure 1 - Springwood Town Centre Study Area ............................................. 8
Figure 2 – Springwood’s Core Retail Area ..................................................... 14
Figure 3 – Retail Hierarchy around the Study Area ....................................... 17
Figure 4 – Springwood Main Trade Area (2015) ............................................ 22
Figure 5 - Population Age Composition (2001-2011) .................................... 23
Figure 6 - Dwelling Type ................................................................................ 26
Figure 7 - Employment by Occupation .......................................................... 27
Figure 8 - Median Sale Price for Single Detached Dwellings ......................... 30
Figure 9 - Median Sale Price for Strata Units ................................................. 31
Figure 10 - Asking rents for units & houses: Springwood ............................. 34
Ref: C15173
HillPDA Page 4 | 43
EXECUTIVE SUMMARY
HillPDA in collaboration with McGregor Coxall was commissioned by
Blue Mountains City Council (the Council) to prepare a Masterplan
for the Springwood Town Centre.
The delivery of this consultancy is divided into five stages with this
Stage 1 providing the retail/commercial demand assessment and
market appraisal.
The findings of this Stage 1 Study will then form the basis of Stage 2
which will provide feasibility assessment of potential development
scenarios within the Springwood Town Centre.
The People of Springwood
Older couples, families and retirees make up a large percentage of
people living in Springwood. In addition to this residents are typically
home owners, living in detached dwellings.
Retail Centres in the Locality
With almost 17,000sqm of retail and commercial floor space
Springwood Town Centre is the second largest commercial centre in
the City of Blue Mountains – Katoomba being the largest. In terms of
the retail hierarchy, Katoomba is the main shopping centre, with
Springwood, Winmalee and Blaxland operating as secondary town
centres.
Springwood Town Centre trade area includes a Primary Trade Area
(PTA) that covers the suburbs of Springwood, Winmalee and Yellow
Rock and two Secondary Trade Areas (STAs) namely a STA East which
incorporates Blaxland and Glenbrook and STA West which extends
west from Faulconbridge to Lawson.
Opportunities to Strengthen Springwood Town Centre?
In terms of the Springwood Town Centre, the demand within town
and village centres for consolidation of food and grocery offering
would suggest potential for improvement in the current retail offer at
Springwood and help in ensuring the future success of the Town
Centre.
There is also a growing demand for cafes, pharmaceuticals, hardware
and household goods, with a decline in newspaper, book, music,
photo printing and department retailing.
Ref: C15173
HillPDA Page 5 | 43
As such there is an opportunity for Springwood to improve its retail
offer by including one or more of the following:

Expanding the provision of supermarket floorspace in the Town
Centre;

Expanding the existing offer with complementary retail (i.e.
specialty food, personal services, gifts/homewares and other
personal and household goods retailing); and

Further improvement and expansion of the café culture within
Springwood Town Centre. This is an area of expenditure that has
increased dramatically over the past couple of decades as
households with less time but more affluence are eating out
more.
Market Research
The residential and retail
markets and to a slightly
lesser degree commercial
market are performing
strongly in Springwood
Springwood’s residential market is relatively strong. The Median sale
price for a single detached dwelling has increased by approximately
8.0% pa over the past 5 years to Feb 2015, in comparison to
Katoomba (5.0%). Residential strata rents have also seen stable
median price growth, averaging approximately 4% pa for the last 5
years to December 2014. Demand for single detached dwellings is
much stronger than for apartments but effective demand for
apartments is restricted by the lack of supply.
The retail market in Springwood is performing relatively well.
Enquiries with local property managers indicate there are few
vacancies in the Town Centre along Macquarie Road and Raymond
Road. Springwood has been regarded as a tightly held market as
there is no major or competing shopping centre in close proximity.
Conversely the Springwood office market is somewhat slower than
the retail market. Commercial spaces located on the ground floor
with direct street frontage are more attractive than above ground
floor commercial suites.
In terms of future development our research indicates only small
scale developments in the pipeline across the Blue Mountains Local
Government Area (LGA), with only one residential development in
Springwood, with deferred commencement.
Ref: C15173
HillPDA Page 6 | 43
1
INTRODUCTION
HillPDA in collaboration with McGregor Coxall was commissioned by
Blue Mountain City Council (the Council) to prepare a Masterplan for
the Springwood Town Centre.
The delivery of this consultancy is divided into five stages with this
Stage 1 providing the retail/commercial demand assessment and
market appraisal.
The findings of this Stage 1 Study will then form the basis of Stage 2
which will provide feasibility assessment of potential development
scenarios within the Springwood Town Centre.
As part of the Stage 1 analysis HillPDA was engaged to advise on:
1. The economic factors influencing development in the Springwood
Town Centre (the Centre) and how these relate to urban design
and the viability of development within the centre;
2. Retail trends likely to influence the nature of the proposed
Springwood Town Centre and the needs of the residents it serves ;
3. The existing housing market in Springwood to identify existing
and forecast demand for housing by type, bedroom number,
prices, rents and vacancy rates; and
4. Availability of commercial office and retail space including supply
pipeline, market demand and take up rates.
The Study Area
Springwood Town Centre is one of two major commercial and
community focal points within the City (the other being Katoomba).
In terms of the retail hierarchy however, Katoomba is the primary
shopping destination, with Springwood, Winmalee and Blaxland
operating as secondary centres.
The Springwood Town Centre is defined as being the area on both
sides of Macquarie Road from the Salvos store in the east to
Springwood Community Art Centre to the west. The Town Centre
also includes Raymond Road, and the non-residential northern side
of Springwood Avenue, from the Civic Centre site to the intersection
with Homedale Street (see Figure 1).
Ref: C15173
HillPDA Page 7 | 43
Figure 1 - Springwood Town Centre Study Area
Source: HillPDA, MapInfo 12.5
Report Structure and Approach
To address the requirements of the project’s brief, the Study has
been set out as follows:
Ref: C15173

Chapter 2 –Retail Trends: explores some of the trends likely to
influence the nature of the proposed Springwood Town Centre and
the needs of the residents it serves.

Chapter 3 - Retail and Commercial Floorspace Supply: reviews
current and future retail and commercial floorspace provision
within the Springwood as well as understanding the local retail
hierarchy and its competitive offer;

Chapter 4 – Commercial, Residential and Retail Market Overview:
reviews the current commercial, residential and retail market
within the Centre and surrounding locality.
HillPDA Page 8 | 43
2
RETAIL TRENDS
The retail industry is a dynamic one with a range of trends influencing its
shape, form and composition. The following Chapter explores some of
the trends likely to influence the nature of the proposed Springwood
Town Centre and the needs of the residents it serves.
Lifestyle Trends
Traditionally retailing followed a hierarchy from regional through to
district to small local centres. More recently that hierarchy has been
challenged by the following social and economic trends:

Increase in the proportion of working women;

Increase in the proportion of part-time and casual employment
and reduction in full-time employment;

Reduction in the proportion of households that match the
‘traditional family’ model and an increase in the number of single
persons and single parent households;

Increase disparity of household income, ranging from high double
income households to households that rely on welfare;

Ageing of the population; and

Increasing working hours for those in full-time employment.
The industry’s response to these changes has led to the growth and
introduction of:
Ref: C15173

The regional centre which incorporate a large diversity of shops,
including department stores, complemented by leisure activities
and other facilities with an extensive trade area;

‘Convenience community centres’ usually dominated by a
supermarket to meet daily and weekly shopping needs and
‘standalone supermarkets’ offering a just-in-time ‘one stop shop’
(petrol, video, pharmacy, groceries, fast food, etc.);

‘Convenience service centres’ being petrol stations on main
highways but offering a just-in-time shop with a range of
groceries and fast foods (e.g. 7 Eleven and Five Star);

‘Category killers’ that provide an extensive range and depth of
competitively priced merchandise within a single market segment
(– e.g. Bunnings, BabyCo, Harvey Norman, Freedom, Toys R Us,
etc). Bulky Goods that integrate warehousing with retailing and
‘Power Centres’ that incorporate multiple category killers and
bulky goods retailers in one large centre.
HillPDA Page 9 | 43

Factory Outlets usually in fringe industrial areas providing a
cluster of out of season clothing and homeware stock.
All the above demographic and employment trends point to the need
for more flexible trading hours to provide convenience for what is
termed the “time-poor” shopper. In other words, we are steadily
replacing the once-a-week shop with a series of small shopping trips
as and when we need to buy various goods. This is called “just in
time” shopping. The increasing percentage of working couples has
demanded this change.
Regional centres because of their size and complexity find it hard to
provide convenience shopping. A market niche has therefore
emerged for smaller centres to provide this convenience of “quick-in"
and “quick-out” shopping. Furthermore, many people find the larger
malls impersonal and seek a sense of community with the smaller
convenience centres. Such smaller centres can incorporate
community services and facilities, integrated residential development
and restaurants to provide an urban village that the community can
identify as reflective of their local area/identity.
In terms of broader future retail trends, research undertaken by
HillPDA has identified a number of significant trends likely to influence
the retail sector over the next decade. It is important to note that this
is not an exhaustive list, nor does it purport to comment on trends
which would affect the in-store experience (e.g. the increasing
emphasis on personalised marketing). Some of the key trends
identified include the following:

Consolidation of demand within larger centres;

Large supermarkets in smaller centres;

Increasing demand for residential uses in centres; and

Continued evolution of online retail.
For the purpose of context, each of these trends are broadly explored
below.
Consolidation of Demand within Large Centres
Large retail centres are attractive to shoppers because of their retail
choice, product range and the mixed-use nature of their offer which
extends well beyond purely retail uses. Larger centres are also more
attractive to retailers comparative to smaller centres owing to their
larger catchment areas. It is anticipated that larger centres will
Ref: C15173
HillPDA Page 10 | 43
continue to strengthen their offer as a result of the expansion of new
international retailers in the Australian market.
As consumers are becoming more brand savvy and are increasingly
looking for particular brand names, it is expected that they will be
increasingly attracted to the larger centres which provide this retail
offer.
Larger Supermarkets in Smaller Centres
A recent trend which is likely to continue to influence the retail
market relates to demand for larger supermarkets in smaller centres.
This trend would see an increase in proposals seeking to develop
supermarkets of up to 2,000sqm in smaller centres where previously
smaller supermarkets or convenience stores may have prevailed.
It is anticipated that this trend will continue owing to:

Increasing consumer habits towards undertaking multiple smaller
convenience shopping trips during the week;

Increasing desire from consumers for walkable and convenient
access to food and grocery shopping reflecting declining vehicle
ownership / usage moreover there is expectations for access to
retail facilities outside of traditional trading hours; and

Strong activity from smaller supermarket operators including
ALDI and IGA with Coles and Woolworths increasingly competing
at this end of the market.
Increasing Demand for Residential Uses in Centres
Smaller dwellings in
accessible locations and
lifestyle changes will see an
increase for housing within
centres
Demand for housing within centres is increasing as a result of:

Demand for smaller dwellings in accessible locations to support
affordable living; and

Lifestyle changes with residents increasingly favouring proximity
to the strong offer of retail and personal services in centres. This
reflects the increasing preference of young households to live in
highly accessible and well serviced locations, retirees seeking to
remain in their local neighbourhoods and downsize accordingly.
Continued Evolution of Online Retail
A major topic of debate regarding the future of retail in Australia is
the continued growth of online retail and the likely impacts this may
have to ‘bricks and mortar’ retail.
Ref: C15173
The latest data from National Australia Bank (NAB) indicates that for
the year to January 2014 online retail spending increased to $14.9
billion or by 11.3%. This accounted for approximately 6.5% of
traditional retail spending overall1, although market penetration
rates vary significantly across category types. There has been
continued growth for electronic games and toys, fashion, homewares
and appliances, groceries and liquor but trends have been much
weaker for recreational and personal goods and media.
Retail analysts agree that online retail growth would continue in the
future although there is no consensus as to the amount of growth
that can be expected. The rate of growth from October 2013 to
January 2014 was estimated at 0.1%.
It is likely that the growth of online retail will change the way
shoppers interact with physical stores but current industry forecasts
suggest this may not lead to a significant decline in demand for high
street floorspace (with particular regard to supermarket floorspace),
due largely to forecast population growth.
In addition to the above HillPDA have also reviewed recent retail
spending figures and have identified the key retail trends which are
likely to influence the type of retailers which prosper over the coming
years. Our key findings are as follows:
1

Growth in retail spending in NSW has generally been in line with
the Australian average. The strengthening of consumer
confidence has seen retail spending growth in NSW exceed the
Australian average in last quarter of 2013 (2.4% vs 2.1%);

Turnover in food and supermarket spend has seen an increase of
2.5% over the period of 2012 to 2013, reflecting the higher spend
on basics;

Department store turnover has seen a steady decline, down by
-0.6% over 2012 to 2013;

Clothing retailing turnover observed strong increases in NSW
(10.5% increase from 2012 to 3013);

Pharmaceutical sector experienced growth of +7.4% in NSW, the
highest of all states nationally;

Newspaper and book retailing sector fell in NSW by 20.2% over
this same period, reflecting the structural change in the industry
away from paper news and magazines to e-readers and
Source: NAB Online Retail Sales Index, January 2014 (March 2014)
Ref: C15173
electronic subscriptions. A similar decline has also been observed
in music stores and photo printing retailing;

Café turnover remained stable in NSW over 2012-2013, however
has shown a growth nationally of 4.4% with trend expected to
continue; and

The performance of the residential market in NSW is likely to
result in improved demand for hardware and household goods,
which had previously been below trend2.
What does this mean for Springwood Town Centre?
In terms of the Springwood Town Centre, the demand within town
and village centres for consolidation of food and grocery offering
would suggest potential for improvement in the current retail offer at
Springwood would help in ensuring the future success of the Town
Centre. Working residents in the trade area are becoming more “cash
rich / time poor” although retirees are more “time rich / cash poor”.
Both sets of demographics demand space for food and grocery
shopping. There is a growing demand for cafes, pharmaceuticals,
hardware and household goods, with a decline in newspaper, book,
music, photo printing and department retailing. As such Springwood
Town Centre could benefit from improving the café and restaurant
offer along with expanding the provision of gifts/homeware and
supermarket retail floorspace in the Town Centre.
2
Retail Market Overview – 2014; ABS Retail Trends
Ref: C15173
3
RETAIL FLOORSPACE SUPPLY
This Chapter undertakes an audit of retail and commercial floorspace
in Springwood Town Centre and the surrounding area.
Springwood Town Centre
Springwood Town Centre’s retail and commercial uses are
predominantly clustered along Macquarie Road and Raymond Road.
A small provision of retail and commercial is also provided along the
northern side of Springwood Avenue from the Civic Centre site to the
rear of the Fire Station.
Building typology predominately consists of older style one to two
storey buildings with medium density and detached residential uses
located on the peripheries of the Springwood Town Centre.
The Town Centre predominantly serves the needs of the surrounding
residents of Springwood. Retail stores have changed slightly over the
past few decades to reflect changing retail trends, with fewer
vacancies highlighting growing demand for retail within Springwood.
Springwood’s Core Retail Area
For the purposes of this section and to review the change in
floorspace between 2007 and 2015, HillPDA have adopted the same
study area for Springwood’s Retail Core Area as previous strategic
planning projects (see Figure below).
Figure 2 – Springwood’s Core Retail Area
Ref: C15173
Comparison between 2007 and 2015 Floorspace Surveys
At the time of the 2007 Springwood Town Centre Land Use Survey,
the Town Centre provided approximate 15,890sqm of retail,
commercial and other uses. Of this floorspace, 10,550sqm (66%) was
attributed to retail uses, 4,680sqm (29%) was commercial uses
(including shop top and medical uses) and 4% of floorspace was
vacant.
Moreover the Town Centre provided 143 tenancies of which 94 were
retail shopfronts (66%), 39 were commercial shopfronts (27%) and 10
were vacant (7%). The high proportion of non-retail uses and the
number of vacancies suggested that the Town Centre was trading
mundanely.
HillPDA completed another floorspace survey in March 2015. A direct
comparison to uses surveyed in 2007 found:
Ref: C15173

The quantum of retail floorspace had increase from 10,550sqm
to 11,661sqm so that is now represented 70% of floorspace
within the Centre (up from 66% in 2007);

4,760sqm of commercial space which is only a slight increase of
+80sqm since 2007 (this includes shop top and the office mainly
medical, real estates and financial suites); and

317sqm of the retail floorspace was vacant which represents only
2% of retail shop front (down from 4% in 2007).

The Centre provided 149 retail shop fronts (of which 7 were
vacant) and approximately 43 tenants were non-retail
commercial businesses. Of particular note is the decrease in
vacancies over the period which suggests the centre is
performing better. Almost half of the vacancies (three) are on
David Road under the IGA supermarket next to the Lawnmower
business, where footfall (pedestrian traffic) is almost nonexistent. Since the 2007 survey two vacancies remained at the
Raymond Centre due to poor location and footfall.

The Lloyds Supa-IGA (1,300sqm) and Supa-IGA Springwood
(950sqm) remained the main supermarkets and anchor retailers
within the Town Centre. The Centre also accommodated various
other smaller specialty stores generally ranging from 50sqm to
200sqm.

Of interest over the eight year period the number of retail
businesses increased from 143 to 149 and the number of
vacancies fell from 10 to 7 suggesting that Springwood has
improved its trading performance over this period.
Table 1 - Springwood Town Centre Floorspace Survey’s 2007 and 2015
2007
Category
Commercial
Retail
Vacancies
Subtotal
Area (sqm)
2015
No.
Businesses
Area (sqm)
No.
Businesses
4,680
39
4,760
43
10,550
94
11,661
99
660
10
317
7
15,890
143
16,738
149
Source: HillPDA Land use survey 2007; HillPDA Land use survey 2015
In terms of the retail provision in Springwood Town Centre, the vast
majority of stores are specialty non-food retailers followed by
personal services. The provision of restaurants, café and take away
stores has increased over the eight years, however remains relatively
low when compared against other centres in the Blue Mountains
such as Katoomba, Leura and Blackheath.
Springwood provides a strong provision of professional and
commercial office space, financial and medical services, including
NRMA, a range of banks, Centrelink and the Springwood RTA.
Solicitors, accountants, employment services and real estate agency
form a large proportion of the commercial floorspace in Springwood.
The provision of such services at Springwood Town Centre
encourages multi-purpose shopping and would draw customers from
further afield. If any of these services were to relocate from
Springwood, this would have some level of impact on Springwood
Town Centre, particularly in capturing trade from the secondary
trade areas and beyond. Retailers also capture some expenditure
from the office workers.
Competing Centres
The following section reviews the existing and future competitive
retail environment in the locality as this will influence the future
trade area (area of trade influence).
The location of these centres is depicted in the following figure and
each of the centres identified is subsequently examined individually.
Ref: C15173
Figure 3 – Retail Hierarchy around the Study Area
Penrith CBD
The Penrith CBD is located approximately 16.6km East from
Springwood and offers the following:
Westfield Penrith Shopping Centre
Westfield Penrith comprises 78,820sqm of retail floorspace, located
on High Street, bounded by Jane Street and the Great Western
Highway to the north, Station Street to the east, High Street and
Henry Street to the south and Mulgoa Road to the west. Major
tenants include Myer (20,114sqm), Big W (8,738sqm), Target
(7,097sqm), Woolworths (3,795sqm), Rebel Sport (1,918sqm), ALDI
(1,616sqm), Harris Farm Markets (1,507sqm) and JB Hi-Fi (1,207sqm).
There are also 263 specialty shops accounting for 31,635sqm of retail
floorspace.
The centre also accommodates a medical centre, a Hoyts Cinema,
Anytime Fitness and commercial office tenants. In 2015, the centre
achieved turnover equating to $7,687/sqm3. This was around 14%
above the median level of turnover for the 83 “Big Gun” shopping
centres (centres over 50,000sqm lettable area) listed in the Shopping
Centre News (2009). It is also one of the strongest performing
centres in Western Sydney.
3
Shopping Centre News, Big Guns 2015
Ref: C15173
Nepean Village
Centro Nepean comprises 19,355sqm of retail floorspace. The centre
is anchored by Kmart (8,430sqm) and Coles (4,389sqm). Additional
specialty shops account for 6,536sqm of retail floorspace. Turnover
for the centre is very strong at $10,463/sqm4 in 2014.
The Nepean Shopping Centre (Henry Street Plaza)
The Nepean Shopping Centre is located on Henry Street and
comprises approximately 2,460sqm of retail floorspace. The Centre is
anchored by an IGA’s supermarket of 1,600sqm. There are also 7
specialty shops that provide 860sqm of retail floorspace.
The Henry Lawson Centre
The Henry Lawson Centre comprises 7,037sqm of retail floorspace. It
is anchored by The Good Guys (3,204sqm) and has 8 specialty shops
that provide a further 3,833sqm of retail floorspace. It also
accommodates an independent medical practice and office
tenancies.
Tattersalls Centre
Tattersalls Centre provides 1,919sqm of retail floorspace and is
anchored by ANZ Bank (1,033sqm) and Priceline (886sqm). There are
also 17 specialty shops that provide 1,072sqm of retail floorspace.
Remainder of Penrith
Remaining shop front space in Penrith CBD is predominantly located
along High Street and extends to Henry Street in the north and to
Union Road in the south. The strip retailing comprises a total of
approximately 66,000sqm of shopfront floorspace (including a
1,400sqm IGA supermarket and 1,500sqm ALDI supermarket).
There is also a small convenience centre (Kingswood Park Shopping
Centre) on Caloola Avenue located near the Penrith/Cambridge Park
suburb boundaries. The centre comprises around 2,150sqm of retail
floorspace and is anchored by a IGA (1,070sqm) plus 7 specialty
stores (1,080sqm).
Mulgoa Road
The Penrith Centre comprises just over 26,046sqm of retail
floorspace. Major tenants include Spotlight (3,726sqm), Anaconda
(3,205sqm), Baby Bunting (1,704sqm), Fantastic Furniture
(1,528sqm), JB Hi-Fi (1,313sqm), Supercheap Auto (1,000sqm),
4
Shopping Centres News, Little Guns 2014
Ref: C15173
Petbarn (992sqm) and Snooze (991sqm). 24 specialty shops provide
an additional 8,824sqm of retail floorspace.
Next to this centre is the Harvey Norman centre which includes a
12,000sqm Bunnings Hardware House, 11,600sqm Harvey Norman,
6,600sqm Domayne Centre and 2,000sqm Lindcraft.
A number of other bulky goods retailers are located along Mulgoa
Road. In total there is around 70,000sqm of bulky goods retailing in
the area.
Katoomba
Katoomba is the largest retail centre in the Blue Mountains. It is the
most visited town in the Blue Mountains due to the scenic national
parks in the area and it is the administrative headquarters of the Blue
Mountains LGA. Katoomba is classified as a major town centre
containing an estimated total gross retail floor space of
approximately 45,000sqm including three supermarkets (i.e.
Woolworths, Coles and ALDI) and two discount department store (i.e.
Big W and Target Country). Katoomba Street is the old main street
component of the town centre and comprises a number of specialty
retailers such as gift shops, antique stores, cafes and restaurants
which predominantly serve the tourist market. There is also retailing
activity located between Katoomba Street and Parke Street. The
former Coles supermarket and Kmart site has since been replaced by
the recently developed Katoomba Marketplace which includes a
Woolworths supermarket of 3,485sqm and Big W of 6,210sqm. Also
along Parke Street there is a Coles Supermarket (3,181sqm) and
specialty retail 1,876sqm) provided within the Katoomba Civic Centre
and a Target Country (1,600sqm) at the former Katoomba Fair
Shopping Centre. There is also an ALDI foodstore and a number of
other smaller specialty retailers located along Waratah Street.
For a Major Town Centre, Katoomba has a surprising lack of national
specialty stores – particularly in apparel. With its anchor
supermarkets and specialty food stores Katoomba is a major
destination for “chore” shopping. However Residents in the Blue
Mountains are travelling to Penrith and other large centres to
undertake “comparative goods” shopping.
In terms of future developments an application for a Bunnings Retail
Warehouse has recently been approved in Megalong Street.
Ref: C15173
Blaxland
Blaxland is located approximately 10km to the south east of
Springwood and has a population of approximately 7,000 – 7,500
persons. Blaxland is classified as a village centre and is strategically
located to service passing trade along the Great Western Highway as
well as serving a convenience retailing function for the resident
population in the lower Blue Mountains. The main hub of retail
activity is located along Great Western Highway between Hope
Street to the east and View Street to the west, near the railway
station. There is approximately 11,000sqm of retail floorspace within
this precinct which includes a Supa-IGA supermarket. As such the
level of retail floorspace at Blaxland is comparable to that of
Springwood Town Centre.
Winmalee
Winmalee Village was the first enclosed shopping centre in the Blue
Mountains area featuring modern interiors and a number of
environmental initiatives incorporated in the design for energy
efficiency. The centre comprises a purpose built shopping centre of
7,387sqm anchored by a full-line Coles supermarket of 3,358sqm5
and includes a Target Country and 23 specialty shops providing
3,807sqm of retail floorspace.
Springwood’s Trade Area
The trade area served by a retail centre is determined by a
combination of factors including:
5

The strength and attraction of the Centre as determined by
factors such as the composition, layout, ambience / atmosphere
and car parking in the centre / facility;

Competing retail centres, respective sizes, retail offer and
attraction;

The retail hierarchy and the size and retail offering of centres
surrounding Springwood;

The location and accessibility of Springwood Town Centre
including the available road and public transport network and
travel times; and
Property Council of Australia NSW/ACT Shopping Centre Directory 2013/14
Ref: C15173

The presence or absence of physical barriers, such as rivers,
railways, national parks and freeways.
Based on the retail hierarchy and competitive offer described above,
Springwood Town Centre’s trade area has been defined to include
one Primary Trade Area (PTA) and two Secondary Trade Areas (STAs)
as follows:

Springwood’s PTA is defined as the residential area immediate
surrounding the Town Centre. The PTA comprises the suburbs of
Springwood, Winmalee and Yellow Rock. Retail provision within
Penrith restricts the extent of the PTA to the east whilst the
larger centre of Katoomba restricts Springwood’s PTA to the
west. The PTA stretches around 5km to the east and west of the
Town Centre. Retail facilities at Springwood Town Centre would
capture a proportion of everyday food and grocery shopping, as
well as top-up shopping from residents in this area; and

The presence of the railway station and commuter parking would
likely increase the potential of the Springwood Town Centre to
capture some retail expenditure beyond this PTA, for this reason
we anticipate that Springwood will draw some expenditure from
the trade areas of smaller retail centres in the locality, including
Blaxland and Hazelbrook. The STA East includes those residents
of Blaxland and Glenbrook, whilst the STA West extends west
from Faulconbridge (inclusive) to Lawson (inclusive). However
owing to the retail provision provided within these localities, we
believe that the proportional draw of trade from the STAs would
be significantly lower than the PTA.
The extent of the trade areas are shown in the following map.
Ref: C15173
Figure 4 – Springwood Main Trade Area (2015)
We refer hereafter to the combination of the PTA and STAs as the
Main Trade Area (MTA) of the Springwood Town Centre.
The following section undertakes a demographic analysis of the PTA,
with particular regard to the population, dwelling and economic
status of residents within the PTA, as the majority of trade will be
captured from this locality. In order to highlight unique local
demographic trends, HillPDA has (where appropriate) benchmarked
PTA against Greater Sydney to highlight regional differences. Data
bases used to inform this section include the Australian Bureau of
Statistics (ABS) and the Bureau of Transport Statistics (BTS).
Population Characteristics
Population Growth
Between 2001 and 2011 the PTA population increased marginally by
223 persons or 1%. This increase was significantly lower than the 11%
growth in population experienced by Greater Sydney over the same
period.
Table 2 - Population Size 2001 - 2011
PTA*
Greater Sydney
2001
2011
Total Change
% Change
Annual
Increase
21,191
21,414
223
1.1%
0.10%
3,997,321
4,429,035
431,714
10.8%
1.03%
Source: ABS Time Series 2011; *
Ref: C15173
Population Age Composition
The PTA experienced a significant increase in residents aged over 60
years between 2001 and 2011 (+6%) and is well above the Greater
Sydney average (21% compared to 19%). The median age has
increased from 36 years to 40 years over this period. This suggests
there is increasing representation of retirees within the PTA.
Figure 5 - Population Age Composition (2001-2011)
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
0-14
15-29
30-44
45-59
60-74
75+
PTA 2001
PTA 2011
Greater Sydney 2001
Greater Sydney 2011
Source: ABS 2011 Time Series
Non- School Qualification Education Attainment
Non- school education attainment within the PTA improved (+7%)
between 2001 and 2011, as a proportion of the population over 15
years (63%) the PTAs education attainment was greater than that of
Greater Sydney (59%) in 2011.
Table 3 - Non- School Qualification Education Attainment
PTA
Greater Sydney
2001
2011
Difference
Postgraduate Degree Level
3.0%
4.7%
1.7%
5.5%
Graduate Diploma & Graduate Certificate Level
2.7%
2.6%
-0.1%
1.6%
12.5%
15.7%
3.3%
16.7%
Bachelor Degree Level
Advanced Diploma & Diploma Level
2011
8.4%
11.1%
2.7%
8.8%
Certificate Level
19.1%
21.6%
2.5%
14.9%
Not stated / Not applicable
10.2%
6.9%
-3.3%
11.1%
Total
55.8%
62.6%
6.8%
58.6%
Source: ABS Community Profile (2001 and 2011)
Ref: C15173
Dwelling Characteristics
The average household size slightly declined from 2001 to 2011 (-0.1)
within the PTA to be in line with the Greater Sydney at 2.7.
Table 4 – Occupancy Rates 2001-2011
PTA
2001
Average Household Size
2011
2.8
Greater
Sydney
Change 01-11
2.7
2011
0.1
2.7
Source: ABS Community Profile (2001 and 2011)
Dwelling Tenure
80% of dwellings within the PTA were either owned outright or with a
mortgage, which has remained stable since 2001.
The proportion of households in the PTA that rented increased over
this same period (+1%) to 15% in 2011. Although this remained
significantly lower than that recorded for Greater Sydney (30%).
Table 5 - Dwelling Tenure Type
PTA
2001
2011
Difference
2001-2011
Greater
Sydney 2011
Owned or Being
Purchased
80.2%
80.2%
0.0%
62.3%
Rented
13.9%
15.2%
1.3%
30.4%
Household Structure
Family households remained the dominate household structure
within the PTA, representing 76% of all households in both 2001 and
2011. This was significantly higher than that recorded for Greater
Sydney (70%).
Lone persons households increased slightly (+1%) over the period to
represent 20% of the households within the PTA as of 2011 which
may reflect the greater proportion of retirees. This proportion was
just below that recorded for Greater Sydney (22%).
Ref: C15173
Table 6 Household Structure
PTA
Difference
Greater Sydney
2011
2001
2011
Family Households
76.3%
76.2%
-0.1%
69.5%
Lone Person Households
19.4%
20.4%
1.0%
21.5%
Group Households
2.0%
2.0%
0.0%
4.1%
Other Households
2.4%
1.4%
-1.0%
5.0%
Family Structure
Over the ten year period from 2001 couple families with children
within the PTA decreased from 54% of all households to 50%.
The proportion of couple families without children and one parent
families increased over the period (+3% and +1% respectively) to 35%
and 14% respectively.
Table 7 Family Structure
PTA
Difference
Greater Sydney
2011
2001
2011
Couple family w. children
54.0%
50.1%
-4.0%
50.0%
Couple family w/o children
32.5%
35.2%
2.7%
32.5%
One parent family
12.6%
13.8%
1.1%
15.6%
0.8%
1.0%
0.1%
2.0%
Other family
Dwelling Type
Detached houses remain the most prevalent dwelling type in PTA
comprising 93% of all dwellings in 2011, up from 91% in 2001. This
was significantly higher than that recorded for Greater Sydney in
2011 (60%).
Townhouses style dwellings had also increased over this 10 year
period (+1%), whilst the proportion of apartment style dwellings had
declined (-3%).
Ref: C15173
Figure 6 - Dwelling Type
100.0%
3.0%
2.0%
1.0%
0.0%
-1.0%
-2.0%
-3.0%
80.0%
60.0%
40.0%
20.0%
0.0%
2001
2011
Difference
Labour and Economic Indicators
Employment by Occupation
As of 2011, 23% of residents living within PTA were employed within
"blue collar" occupations such as labourers, trade workers and
machinery operators. This proportion has declined slightly (-1%) over
the period between 2001 and 2011, remaining below that recorded
for Greater Sydney (24%).
Residents employed within "white collar" occupations has increased
from 37% in 2001 to 38% in 2011 and was in line with the Greater
Sydney (37%).
The remaining 33% of residents (excluding unemployed and not
stated) were employed in community, administrative and sales
occupations which remained steady over this same period.
Ref: C15173
Figure 7 - Employment by Occupation
40.0%
35.0%
30.0%
25.0%
20.0%
15.0%
10.0%
5.0%
0.0%
white collar
blue collar
2001
community/sales
2011
Income
Households within the PTA had a lower weekly earning potential
when compared to Greater Sydney as of 2011. This is evident as 52%
of households earning a weekly income of less than $1,250 compared
to 48% for Greater Sydney.
However, households earning a weekly income of $3,000+ increased
by 4% over the ten year period to 2011.
Table 8 - Weekly Household Income 2011
PTA
Greater Sydney
$0-$1,249
51.9%
48.1%
>$1,249
38.4%
42.3%
Opportunities to Strengthen the Centre
There is an opportunity for Springwood to improve its retail offer by
including one or more of the following:
Ref: C15173

Expanding the provision of supermarket floorspace in the Town
Centre;

Expanding the existing offer with complementary retail (i.e.
specialty food, personal services and other personal and
household goods retailing); and

Further expansion and improvement to the café culture.
Springwood’s level of café shops and alfresco dining has
improved over the eight years with the number of restaurants,
cafes and take away stores increasing from 15 to 22 tenants (or
970sqm to 1,500sqm). However by comparison to many other
centres in the Blue Mountains and the level of demand for
restaurant floorspace (i.e. 2,800sqm) the level of restaurant
floorspace is relatively low. This is an area of expenditure that
has increased dramatically over the past couple of decades as
households with less time but more affluence are eating out
more.
Ref: C15173
4
MARKET RESEARCH
This Chapter will provide a detailed analysis of the current
residential, retail and commercial market conditions in Springwood.
In detail, this chapter will comprise sales of residential strata units
and development sites and recent retail and commercial rents in
Springwood and surrounding areas.
General Market Commentary
HillPDA’s research indicates Springwood’s residential market as
relatively strong. The Median sale price for a single detached dwelling
has increased by approximately 8.0% pa over the past 5 years to Feb
2015, in comparison to Katoomba (5.0%). Residential strata rents
have also seen stable median price growth, averaging approximately
4% pa for the last 5 years to December 2014. Based on our market
research we have seen more demand for single detached dwellings
compared to apartments. This can be attributed to the lack of new
apartment developments in the pipeline and existing supply.
In regards to vacancy, SQM Research has recorded the residential
vacancy for Springwood at approximately 0.3% (March 2015). In
comparison the residential vacancy for the Blue Mountains region is
approximately 2.6%.
Single Detached Houses
RP Data have recorded approximately 25 single detached house sales
in Springwood in the first quarter of 2015, reflecting a current
median sale price of approximately $590,000. Katoomba and
Penrith's median sale price over the same period is approximately
$400,000 and $550,000 respectively. Springwood’s median sale price
has increased by 20.4% based on 2014 figures, while Katoomba and
Penrith have increased by 2.6% and 16.8% respectively. The figure
below illustrates sale price growth for single detached dwellings on a
quarterly basis from 2008, Quarter 1 (Q1) to 2015, Quarter 2 (Q2).
Ref: C15173
Figure 8 - Median Sale Price for Single Detached Dwellings
Source: RPData; HillPDA
The table below provides a summary of median price movement of
single detached dwellings across Springwood, Penrith and Katoomba
suburbs.
Table 9 - Median Sale Price for Single Detached Dwellings
Median Sale Price
Suburb
Quarter 1 2015
2014
% Increase
Springwood
$590,000
$490,000
20.4%
Penrith
$550,000
$471,000
16.8%
Katoomba
$400,000
$390,000
2.6%
Source: RPData; HillPDA
Based on these findings, the first quarter of 2015 Springwood’s
median sale price was $40,000 or 7.3% more expensive than Penrith
and $190,000 or 47.5% more expensive than Katoomba.
Residential Strata Units
HillPDA’s research indicates a limited supply of existing residential
strata units in The Blue Mountains. This can be attributed to the
existing planning controls, limited demand and few site
opportunities. In 2014 Springwood and Katoomba have recorded 19
and 24 strata unit sales respectively, whereas Penrith has recorded
231 strata unit sales. The median sale price for Springwood,
Katoomba and Penrith in 2014 was $370,000, $333,500 and $270,000
Ref: C15173
respectively. The figure below provides historical price growth of
residential strata unit sales for the three suburbs listed above.
Figure 9 - Median Sale Price for Strata Units
Source: RPData, HillPDA. - It must be noted there were limited strata sales (sample size) for
both Katoomba and Springwood in 2014, therefore the median sale price may not provide a
good indication of value for units.
Sales of Residential Strata Units
HillPDA’s market research indicates a limited supply of residential
apartments in Springwood. This can be attributed to the existing
planning controls and the demand for this type of product. In
addition to this we have been unable to identify any new apartment
developments in Springwood in the last 12 months. The analysis
below provides summary of existing residential strata units that have
exchanged in the last 12 months. Due to the limited supply of
apartment sales we have included small villas in our analysis. The
figure below provides a summary of the sales we have identified,
followed by a more detailed analysis of each sale.
Table 10 - Summary of Strata Unit Sales: Springwood
Strata Unit
Low Range
High Range
Median
2 Bedroom Unit
$285,000
$425,000
$370,000
1 Bedroom Unit
$240,000
$257,000
$248,500
Source: RPData, HillPDA
Ref: C15173
Table 11 - Detailed Analysis of Strata Unit Sales: Springwood
Photo
Details
4/10 Ferguson Road, Springwood
Sale Details: $380,000 (April-14)
Accom: 2 Bedrooms, NA, NA
Comments: Two storey unit development. 750m
south of Springwood Railway Station.
6/2 Stypandra Place Springwood
Sale Details: $370 (April-14)
Accom: 2 Bedrooms, 1 Bath, 1 Car
Comments: Single storey villa. 1.3km North of
Springwood Railway Station.
28/92 Lalor Drive, Springwood
Sale Details: $370,000 (Oct-14)
Accom: 2 Bedrooms, NA, NA
Comments: Single storey villa. 3.9m south of
29/92 Lalor Drive, Springwood
Sale Details: $330,000 (May-14)
Comments: Single storey villa. 3.9m south of
8/5 Ferguson Road, Springwood
Sale Details: $307,000 (Aug-14)
Accom: 2 Bedrooms, 1 Bath, NA
2/67 Macquarie Road, Springwood
Sale Details: $285,000 (Dec-14)
west of Springwood Railway Station.
Ref: C15173
16/32 Springwood Avenue Springwood
Sale Details: $ 257,000 (Jan-15)
Accom: 1 Bedroom, 1 Bath, 1 Car
Comments: Three storey development with car
parking on the ground floor. 750m south of
8/8 Boland Avenue, Springwood
Sale Details: $240,000 (Mar-15)
Accom: 1 Bedroom, 1 Bath, 1 Car
Comments: Two storey development. 750m
Source: RPData, HillPDA
Residential Projects
HillPDA have analysed a residential project in Leura, situated 25km
west of Katoomba. The project is located less than 100m north of
Leura railway station. Leura is a tourist destination and may attract
higher prices than Springwood because of this market. However the
project evidence can provide an indication on price for residential
units in the local area.
Table 12 - Detailed Analysis of Strata Unit Sales: Leura
Residential Unit Project
100 The Spires, Leura Mall Leura
The Spires is a medium density
development that was completed in
2009. The project comprises 68
residential units, mostly large two
bedroom units. Offers underground
private parking and external balcony. The
project is situated in Leura, approximately
2.5km west of Katoomba.
2 Bedroom Units Sales in the last 6 months to March 15
Property Details Low Range
Average
High Range
Sale Price
$300,000
$320,000
$360,000
Internals
59
94
103
Balcony
9
9.5
10
$/sqm
$2,913
$3,254
$3,511
It is important to note based on our market research and site inspections, Leura is a
stronger tourist destination than Springwood.
Source: Realestate.com, RP Data, HillPDA
Ref: C15173
Yields
According to SQM Research, implied gross rental yields for
Springwood as at April 2015 are approximately 4.0% for houses and
approximately 4.7% for residential units. In comparison to the Blue
Mountains region at approximately 4.7% for both houses and
residential units.
Rental Income
Rent for residential units have been relatively flat over the past three
months, with the average asking rent current at $290/pw for all units
and $430/pw for all houses.
Figure 10 - Asking rents for units & houses: Springwood
Source: HillPDA, Realestate.com.au
Retail and Commercial Market
HillPDA’s market research indicates the retail market in Springwood
to be relatively strong. Enquiries with local property managers
indicate there are few vacancies in the town centre along Macquarie
Road and Raymond Road. Springwood has been regarded as a tightly
held market as there is no major or competing shopping centre in
close proximity. Advised by one property manager, the market rents
in Springwood are slightly higher than Penrith’s main street due to
the negative impact Westfield Penrith has on local shops in the area.
It is advised the commercial market is a little lower than the retail
market in Springwood. Commercial space located on the ground floor
with frontage tends to perform stronger than second floor
commercial suites.
Ref: C15173
Retail & Commercial Property Rents
The table below provides an analysis of recent retail and commercial
leases in Springwood. Due to the lack of new leases in Springwood,
the analysis includes properties that are for lease. Retail leases range
from $305/sqm to $630/sqm (net), with a mid-point at $444/sqm
(net). Further enquiries with a local property manager indicate a
typical lease in Springwood Town Centre would generate around the
mid to high $400/sqm (net). It must be noted the range in the lease
values is subject to various conditions of the property and lease
agreements including terms of the lease, incentives, type of tenant
etc.
Retail Leases
Table 13 - Springwood Retail Leases
Address
Area
Amount
Tenant
Term
Date
$/sqm
Gross
$/sqm
Net
($)
132A Macquarie Rd
120sqm
$84,000
Local
Member
6+4
Nov-14
$700
$630*
4/150 Macquarie Rd
40sqm
$25,000
-
For Lease
For Lease
$625
$555*
286b Macquarie Rd
84sqm
$46,200
-
For Lease
For Lease
$550
$480*
111 Macquarie Rd
77sqm
$39,600
-
For Lease
For Lease
$514
$444*
4/7-9 Raymond Rd
110sqm
$36,000
-
For Lease
For Lease
$360
$327
8/7-9 Raymond Rd
95sqm
$36,000
-
For Lease
For Lease
$379
$309
3B Raymond Rd
56sqm
$21,000
Hair &
Beauty
1+2
Jan-15
$375
$305*
Source: Local property managers, HillPDA, real commercial.com. *HillPDA have been unable to
provide the exact figure for outgoings to calculate the $/sqm (net). Therefore we have adopted
a rule of thumb rate of $70/sqm.
It is important to note the lease at 132A Macquarie Road,
Springwood was a market review and was supported by a rental
valuation. An enquiry with the property manager indicated that
$700/sqm (gross) is a fair and market rate for the property.
Ref: C15173
Commercial Leases
Table 14 - Springwood Commercial Leases
Address
Area
Amount
Tenant
Term
Date
$/sqm
Gross
$/sqm
Net
($)
4,5,6/5 Raymond Rd
172.9sqm
$86,057
Federal
Member
NA
Mar-15
$498
$436
7/5 Raymond
90sqm
$32,500
-
For Lease
For Lease
$361
$291*
4/4-7 Raymond
Road
110sqm
$39,600
-
For Lease
For Lease
$360
$290*
Source: Local property managers, HillPDA, real commercial.com. *HillPDA have been unable to
provide the exact figure for outgoings to calculate the $/sqm (net). Therefore we have adopted
a rule of thumb rate of $70/sqm.
In 2007 commercial/retail leases ranged from $382/sqm to
$724/sqm, with a median at $423/sqm6. This reflects a growth rate of
less than 1% per annum in asking rents.
Current rents in Katoomba are in the range from $153/sqm to
$276/sqm (net) and a median of $196/sqm. This is considerably
cheaper than current asking rents in Springwood (median of
$444/sqm). This can partly be attributed to the level of supply of
retail/commercial space in Katoomba. Enquiries with property
managers indicate Katoomba has a large vacancy factor, which would
impact on the market rent for the town.
Springwood has been regarded as a tightly held market with few
vacancies and no major or competing shopping centre in close
proximity. These factors can drive the demand for retail/commercial
space for Springwood and increase rental prices.
Retail & Commercial Property Sales
The table below provide recent sales of retail and commercial
properties in the Blue Mountains LGA. Sale prices have ranged from
$2,625/sqm to $5,000/sqm of GFA and $1,403/sqm to $8,486/sqm of
land area.
6
HillPDA’s Springwood Town Centre Economic Advice (March 2007)
Ref: C15173
Table 15 - Analysis of Shop front Sales
Photo
Details
248 Macquarie Road, Springwood
Sale Details: $645,000 (Aug-14)
Land: 312sqm ($2,067/sqm)
GFA: 129sqm ($5,000/sqm)
Comments: Comprises two ground floor retail
shops, constructed in 1950s. Shop A: 45sqm and
Shop B: 84sqm.
34 Parke Street, Katoomba
Sale Details: $3,450,000 (Dec-14)
GFA: 1,013sqm ($3,406/sqm)
Yield: 8.1% (Income: $280,000 net)
Comments: Sold prior to completion, precommitted lease with Petbarn (8 year lease from
Dec 2014) plus options to 2042.
82-84 Railway Parade, Leura
Sale Details: $5,550,000 (Oct-14)
Yield: 7.1% (Income: $395,000 net)
Comments: Fully leased freehold investment with
lease up to 2020 + options. Corner site.
3/161-163 Macquarie Rd, Springwood
Sale Details: $750,000 (Dec-14)
Land: NA sqm ($-/sqm)
GFA: 190sqm ($3,816/sqm)
Comments: Single storey strata titled commercial
property comprising reception and 5 offices.
112 Katoomba Street, Katoomba
Sale Details: $670,000 (Sep-14)
GFA: 160sqm ($4,188/sqm)
Comments: Ground floor retail with two selfcontained apartments above. Tenanted
investment.
Sale Details: $1,100,000 (June-14)
GFA: Approx 450sqm ($2,444/sqm)
Comments: Single storey retail shop fronting
Macquarie Road.
Sale Details: $1,210,000 (Feb-14)
GFA: Approx. 300sqm ($4,033/sqm)
Comments: 3 single storey retail shops fronting
Macquarie Road.
Ref: C15173
134 Great Western Hwy, Blaxland
Sale Details: $2,100,000 (Oct-14)
GFA: 800sqm ($2,625/sqm)
Comments: Comprises 14 shops all fully leased
opposite Blaxland Station.
Source: Realcommercial, RP Data, HillPDA
Whilst the rents in Springwood are a little higher than other centres
in the Blue Mountains the yields are also a little higher. Sale prices of
second hand shops are similar to Katoomba and lower than Leura.
Development Site Sales
There have been very few development site sales in Springwood and
surrounding suburbs. This can be attributed to the minimal
development pipeline forecast and local market drivers. A desktop
analysis revealed no recent development sites with the suburb
Springwood. Despite the limited development site sales in the
Springwood area, there has been one new development site sale in
the surrounding suburb Katoomba which provides a good
comparison (shown in the table below).
Table 16 – Development Site Sale
Photo
Details
5-7 Camp Street, Katoomba
Sale Details: $520,000 (Jan-15)
Land: 2,717sqm ($191/sqm)
Comments: Currently zoned Village
Housing with the Draft LEP 2013 being
zoned R3 Medium Density Residential.
Source: Realcommercial, RP Data, HillPDA
Development Pipeline
HillPDA’s research indicates only small scale development activity in
the pipeline across the Blue Mountains Local Government Area
(LGA). More specifically Cordells Database has only identified one
residential development in Springwood, with deferred
commencement.
The tables below provide a summary of mooted projects in the
development pipeline in the Blue Mountains LGA.
Ref: C15173
Retail
Table 17 – Development Pipeline: Retail Projects
Project Title
Project Details
Lawson Village Centre
Location: 66 Waratah St, Katoomba
Time frame: July/13 – Feb/14
Project Stage: Contract Let
Project Details: 2 Storey retail development comprising 5
shops ranging in size from 37 to 80sqm.
Bunnings Retail
Warehouse
Location: 48 Megalong Street, Katoomba
Time frame: Feb/16 – June17
Project Stage: Development Application was recently
approved in the Land and Environment Court
Project Details: Construction of a single storey Bunnings
comprising 58 vehicle car parking spaces.
East Blaxland
Shopping Centre
Location: 43-47 Old Bathurst Road, Blaxland
Time frame: Nov/15 – April-16
Project Stage: Development Application Lodged
Project Details: Construction of a new centre comprising
3 small shops (57, 39 and 32sqm) and a 529sqm
supermarket.
Ross Street Mixed Use
Development
Location: 18-18a Ross St, Glenbrook
Time frame: Oct/15 – Jan/16
Project Details: Construction of 3 retail shops & 3
commercial premises. Car parking & landscaping
Source: Cordells Development Database
Office
Table 18 - Development Pipeline: Office/Commercial Projects
Project Title
Project Details
Govetts Leaps Rd
Mixed Development
Location: 47 Govetts Leaps Rd, Blackheath
Time frame: April/15 – Nov/15
Project Stage: Development Application Approved
Project Details: Construction of a 2 storey office building
comprising commercial suits and a 9 bedroom boarding
house. Car parking for 20 vehicles.
Ref: C15173
Carrington Hotel
Refurbishment and
Additions
Location: 15 Katoomba St, Katoomba
Time frame: Oct/15 – Jun/16
Project Details: Refurbishment to the existing hotel plus
additions. A new micro-brewery, mezzanine store and
tasting bar. 3 new retail outlets to Parke Street.
Katoomba St
Commercial
Development
Location: 157 Katoomba St, Katoomba
Time frame: Jun/15 – Oct/15
Project Details: Construction of a new 2 storey
retail/commercial building consisting of 1 shop on the
ground floor & 1 commercial space on the second floor.
Residential
Table 19 - Development Pipeline: Residential Projects
Project Title
Project Details
Great Western Hwy
Residential
Development
Location: 8 Great Western Hwy, Leura
Time frame: Nov/15 – Jun/17
Number of Dwellings: 19 Units
Project Details: 4 storey development comprising 2x1br
(69-78sqm), 17x2br (86-114sqm) and 22 car parking
spaces.
Renwick Cl Residential
Development
Location: 3 & 3a Renwick Cl, Blaxland
Time frame: Jan/15 – Oct/15
Number of Dwellings: 10 single detached dwellings
Project Details: Subdivision and construction of 10 single
detached dwellings.
Macquarie Rd
Townhouses
Location: 312 Macquarie Rd, Springwood
Time frame: Aug/15 – Mar/16
Number of Dwellings: 5 Townhouses
Project Details: Construction of 5 new townhouses. Total
area 710sq m, 3 x 3, 1 x 2 & 1 x 1 bedrooms townhouses.
Ref: C15173
Cascade St Residential
Development
Location: 41-45 Cascade St, Wentworth Falls
Time frame: April/15 – Oct/15
Number of Dwellings: 8 Townhouses and 4 villas.
Project Details: Construction of 8 x 3 bedroom
townhouses & 4 x 2 bedroom villas.
Raynton House
Location: 66 Waratah St, Katoomba
Time frame: June/15 – Dec/15
Number of Dwellings: 16 Units
Project Details: Redevelopment of the site for affordable
housing.
Ref: C15173
Disclaimer
1.
This report is for the confidential use only of the party to whom it is addressed
("Client") for the specific purposes to which it refers and has been based on,
and takes into account, the Client’s specific instructions. It is not intended to be
relied on by any third party who, subject to paragraph 3, must make their own
enquiries in relation to the issues with which this report deals.
2.
Hill PDA makes no representations as to the appropriateness, accuracy or
completeness of this report for the purpose of any party other than the Client
("Recipient"). Hill PDA disclaims all liability to any Recipient for any loss, error
or other consequence which may ari se as a result of the Recipient acting,
relying upon or using the whole or part of this report's contents.
3.
This report must not be disclosed to any Recipient or reproduced in whole or in
part, for any purpose not directly connected to the project for which Hill PDA
was engaged to prepare the report, without the prior written approval of Hill
PDA. In the event that a Recipient wishes to rely upon this report, the Recipient
must inform Hill PDA who may, in its sole discretion and on specified terms,
provide its consent.
4.
This report and its attached appendices are based on estimates, assumptions
and information provided by the Client or sourced and referenced from
external sources by Hill PDA. While we endeavour to check these estimates,
assumptions and information, no warranty is given in relation to their
reliability, feasibility, accuracy or reasonableness. Hill PDA presents these
estimates and assumptions as a basis for the Client’s interpretation and
analysis. With respect to forecasts, Hill PDA does not present them as results
that will actually be achieved. Hill PDA relies upon the interpretation of the
Client to judge for itself the likelihood of whether these projections can be
achieved or not.
5.
Due care has been taken to prepare the attached financial models from
available information at the time of writing, however no responsibility can be
or is accepted for errors or inaccuracies that may have occurred either with the
programming or the resultant financial projections and their assumptions.
6.
This report does not constitute a valuation of any property or interest in
property. In preparing this report Hill PDA has relied upon information
concerning the subject property and/or proposed development provided by the
Client and Hill PDA has not independently verified this information except
where noted in this report.
7.
In relation to any valuation which is undertaken for a Managed Investment
Scheme (as defined by the Managed Investments Act 1998) or for any lender
that is subject to the provisions of the Managed Investments Act, the following
clause applies:
This valuation is prepared on the assumption that the lender or addressee as
referred to in this valuation report (and no other) may rely on the valuation for
mortgage finance purposes and the lender has complied with its own lending
guidelines as well as prudent finance industry lending practices, and has
considered all prudent aspects of credit risk for any potential borrower,
including the borrower’s ability to service and repay any mortgage loan.
Further, the valuation is prepared on the assumption that the lender is
providing mortgage financing at a conservative and prudent loan to value ratio.
Ref: C15173
ABN 52 003 963 755
Sydney
Level 3, 234 George Street
Sydney NSW 2000
GPO Box 2748 Sydney NSW 2001
t: +61 2 9252 8777
f: +61 2 9252 6077
e: [email protected]
Melbourne
Suite 114, 838 Collins Street
Docklands VIC 3008
t: +61 3 9629 1842
f: +61 3 9629 6315
Brisbane
Level 27 Santos Place, 32 Turbot Street
Brisbane QLD 4000
GPO Box 938 Brisbane QLD 4001
t: +61 7 3181 5644
Ref: C15173

Springwood Town Centre: Retail and Property Report

Transcription

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