9 March 2015

IP Global Investment Manager and Brisbane native Benjamin Hall has spent the past week checking out new investment opportunities in Australia. Here’s what he has to say about Cannon Hill.

IP Global Investment Manager and Brisbane native Benjamin Hall has spent the past week checking out new investment opportunities in Australia. Here’s what he has to say about Cannon Hill, one of our favourite new markets in Brisbane, as well as some inside info on Prominence, our first investment in the area.

We’ve had a really productive week down here in Australia, with Brisbane featuring heavily on our itinerary – you may have read IP Global Chairman Tim Murphy's impressions of Brisbane last week, including his meeting with the city’s Lord Mayor. One of our key take aways from our last few trips to Brisbane has been our identification of the city’s Inner East district as a real area of opportunity for property investment. This part of Brisbane strikes a great balance in terms of location, offering excellent access to both the CBD and the exponentially growing Australia TradeCoast scheme north of the Brisbane River, not to mention the AUD600 million East Village development.

This is a part of Brisbane that is seeing far less development in terms of residential construction when compared with the city’s other major inner boroughs; only 10% of Inner Brisbane’s active residential projects are within the Inner East, and in 2014 only 125 new apartments were completed and settled in the district. That figure is due to rise to 369 across 2015, but that still places it well behind the Inner North, Inner South and Inner West, which will collectively see 2,434 new apartments completed and settled this year.

That relative lack of new construction stands in stark contrast to the consistently high population growth being recorded in the city, with Brisbane on average having attracted 20,000 new residents a year over the past decade. In fact, with 20,859 new residents arriving in Brisbane across the 2013/14 financial year, Brisbane is now the fastest growing Local Government Area in Australia by population, which is great news for property investors in terms of driving sales and rental demand on the city’s residential markets.

And being home to some of Brisbane’s most prestigious neighbourhoods, the Inner East is a key focus of that rising demand, despite the relative lack of construction. These neighbourhoods include Hawthorne, Balmoral and Bulimba, as well as Norman Park, which was until recently home to Former Australian Prime Minister Kevin Rudd. Australia’s richest person, mining magnate Gina Rinehart, recently moved to Hawthorne, in the process setting a new AUD14 million record for the most expensive home on the Brisbane real estate market.

However, it’s slightly further into the Inner East that we’re really interested in from a real estate investment standpoint. You may have already read something about Cannon Hill in our most recent Market Update. We think it’s looking more and more like one of Brisbane’s best locations for property investment, really up there with Newstead in terms of potential.

Cannon Hill is certainly less prestigious than some of its neighbours, but this is an area very much on the up – its proximity to the city’s choicest residential locations is making it increasingly appealing on the local sales and rental markets as more and more investment flows into and uplifts the area. 

The cosmopolitan cafe culture of nearby places like Bulimba is really spreading across to Cannon HIll, making it a great place to be that seems to be really resonating with people. The huge East Village investment – AUD600 million – will be a huge part of transforming the area even more, as will investment in the AUD90 million Southgate Corporate Park.

All this good news for Cannon Hill is why we’ve been working hard to secure a good investment in the area. We’re therefore really pleased to have today launched Prominence, a gorgeous new apartment scheme in the heart of Cannon Hill from established Queensland developer Marquee Projects.

Marquee are a great company with 75 years collective experience, so they really know this part of Australia. They currently have over AUD250 million worth of development investments under management within Greater Brisbane alone, and can be expected to deliver when it comes to Prominence. 

The development itself is stunning, with something of a boutique feel to it; despite the fact that it will be among a rare few multi-apartment blocks in Cannon Hill, Prominence will only have 44 units spread across 4 floors.

I think one of the key selling points for Prominence – what places this development even above other potential residential projects within Cannon Hill itself – is the development’s excellent location within the area.

You may have seen our recent infographic explaining the zoning changes that have been vital factor in Cannon Hill’s emergence as a new market for property investment. As you can see, those changes have opened up some small sections of the Cannon Hill neighbourhood to medium-density residential development, and that’s where the new opportunities for successful investment will be.

Cannon Hill V5.jpg

However, we’re all well aware that not all locations are created equally. What puts Prominence ahead is that it occupies the only spot in Cannon Hill that has been rezoned for medium-density residential use but isn’t located along the relatively busy Wynnum Road or the railway line that runs through the area.

Instead, Prominence will benefit from a buffer of buildings on either side that will insulate it from the noise of both cars and trains, a factor that will make it a strong favourite with tenants and buyers once the completed apartments hit the market.

There’s also the strategic timing of the development’s construction schedule which has been designed to coincide with the completion of a range of local public and private regeneration schemes around Q1 2016. This means buyers will be looking at a vastly improved local environment when they come to tenant their investment for the first time.

Altogether, we think Prominence is an excellent opportunity to enter a fantastic rising market. I hope you like it as much as we do.

If you’d like more information, please feel free to contact one of our Consultants. You can also check out our Brisbane Spotlight Page to get a flavour of the unique Brisbane lifestyle.

IP Global

Written by IP Global

IP Global’s full-service approach is built on extensive market research and analysis combined with a significant financial commitment to every investment we offer. We are able to manage the entire investment process end-to-end, from sourcing, financing, and management to those all important exit strategies, making investment in real estate as straightforward as investing in more traditional asset classes. Our expertise, experience and strong record have produced over USD2.8 billion in international real estate investments in over 30 markets worldwide.

Related posts