Demand outstrips supply in Logan accommodation market

A surge in private and public investment, growing visitor numbers and game-changing tourism projects underway is driving the demand for short term accommodation in the City of Logan.

Located just 30 minutes’ drive to major destinations – Brisbane to the north and the Gold Coast to the south – Logan welcomes 1.4 million visitors each year and continues to have strong levels of growth in domestic and international overnight travel.

The $12 billion of tourism infrastructure injected into the wider region, places the city in a strategic position to take advantage of the boom in visitors to South East Queensland.

However, recent growth forecasts suggest occupancy rates in Logan will exceed 80 per cent by 2021, set to trigger a severe undersupply of rooms and leakage of trade by 2026.

Logan’s current supply is limited – at around 300 rooms across 12 facilities, it comprises primarily of motel style accommodation concentrated along arterial roads.

Despite high occupancy rates, no new hotel stock has been developed in more than a decade.

As cities like Brisbane focus on servicing the leisure travel market, Logan has the potential to grow its stake in the business travel market.

Home to more than 21,000 registered businesses, many headquarters and operational bases in Logan generate a substantial and continuous demand in overnight room stays.

Just one example is global company John Deere – its headquarters for Australia and New Zealand is located in Logan and receives around 700 domestic visitors every year for training alone

The demand metrics on population and business growth indicates a need for 65,000 additional room nights in Logan up until 2036 – equivalent to 180 additional rooms.

When compared to similar areas, Logan is undersupplied in the number of commercial short term accommodation rooms relative to population, workers and visitors.

Table: Data as at January 2019

As one of the largest employers in the city, the Logan Hospital in Meadowbrook is one of the busiest health service providers in the region and has recently kicked off its $460 million expansion project.

Meadowbrook has been identified as a hotspot for potential accommodation facilities, aligned with Council’s master plan to develop the centre as a medical and health precinct.

With projects like the hospital underway and large private enterprise investing in Logan, the demand could outstrip supply faster than predicted.

In the last financial year, building activity in Logan was valued at over $800 million.

A stream of commercial activity saw large companies including national coffee franchisor Zarraffa’s Coffee, global logistics leader DHL and world-first commercial drone delivery service providers Wing (an Alphabet company) establish their operations in Logan.

Zarraffa’s Coffee moved into their $20 million purpose-built national headquarters from the Gold Coast to Logan in August this year.

The company’s new HQ will support 90 plus stores across Queensland, New South Wales and Western Australia and provide the space to progress their future expansion plans.

Spanning 18,000 sqm, the site also combines a roastery, a warehousing, packaging and distribution hub, factory concept cafe’ and the $50 million Distillery Road Market project being delivered by the company’s development arm Tonken Property Group.

Headed by founder of Zarraffa’s Coffee, Kenton Campbell, Distillery Road Market is set to become a world-class food experience destination akin to iconic markets such as Chelsea Market in New York and The Grounds of Alexandria in Sydney.

Campbell said the timing was right to relocate to Logan, given its central location along the growth corridor between Brisbane and the Gold Coast.

“From the point of view of customers, staff and suppliers, there is no better place, than where we are right here,” Campbell said.

“Logan has given me the ability to create something special at Distillery Road Market and for Zarraffa’s.”

Distillery Road Market will be the first of its kind in Logan and Queensland, and is part of a growing tourism cluster in the Beenleigh and Eagleby area.

Local attractions such as Beenleigh Artisan Distillery, Australia’s oldest registered distillery, and award-winning Aboriginal live theatre experience, Spirits of the Red Sand, draw in both domestic and international visitors.

Madison-Park-Overview-Image

In the next few years, the city’s strategic focus on developing its capabilities in the business, cultural and sports events sectors, will see Logan’s relatively youthful tourism industry continue to evolve.

Over the past 6 months, Logan City Council’s events acquisition program in partnership with Sports Marketing Australia has since attracted attendance of more than 14,000 competitors and spectators across 50 event days.

Rick Sleeman, Managing Director of Sports Marketing Australia said that Logan had an accessible location and the right event infrastructure in place to host major sporting events.

“A capacity and capability assessment identified Logan’s potential to become a sports super centre in South East Queensland,” he said.

“Logan has world-class facilities from PGA standard golf courses, sporting fields, indoor courts and 2000-capacity arenas, plus access to national and international airports making the city an ideal host.”

Watch: Madison Park at Park Ridge.

In 2018, the Brisbane Roar Football Club invested $9 million to develop a state of the art training facility and operations base at Logan Metro Sports Park and has plans to host tournaments.

And the recent $65 million whitewater adventure park proposal, now at the pre-feasibility stage, will be a game-changer for Logan and the region – with the potential to become an iconic tourism asset and future Olympic Games venue.

The demand for short term accommodation continues to escalate as the line-up of major sporting tournaments join Logan’s events calendar.

Given the strong demand fundamentals and opportunities across business, events and the emerging tourism industry in Logan, there is a demonstrated gap for a business style, specialist hotel or serviced apartments.

To support this shortage in supply, Logan City Council offers incentives for eligible new short term accommodation developments that achieve a 3.5 to 5 star rating.

For more information on development incentives and to download the study on short term accommodation investment opportunities visit www.loed.com.au.

New home sales building in Queensland

Queensland is leading the nation in terms of new home sales, with the state the only one to record a “significant increase” over the past quarter.

The finding was contained in the HIA New Home Sales report – a monthly survey of the largest volume home builders in the five largest states.

Speaking of the overall national uplift in sales, HIA economist Angela Lillicrap said new home sales bounced back in September to “return to levels seen during the latter half of 2018”.

“Sales increased for the second consecutive month by 5.7 per cent,” Ms Lillicrap said.

“This improvement in sales is a welcome reprieve from the steady decline that emerged in late 2018.

“It remains too soon to confirm that we have passed the bottom of the cycle, but this result does highlight that we are not likely to see further material falls in new home sales.”

For the month, new home sales were up in all states except for NSW, which declined by 0.3 per cent for the month and 12.1 per cent for the quarter.

In Queensland, sales were up 1.7 per cent for the month of September, while the increases were even higher in Victoria (up 11 per cent), South Australia (18 per cent) and Western Australia (13.6 per cent).

But those increases were not enough to lift those states, with Ms Lillicrap revealing that national new home sales remained down by 1.5 per cent compared to the June quarter.

The only state to record a “significant increase” was Queensland, which recorded a 6.9 per cent increase in new home sales compared to the June quarter, according to the report.

“Going forward, moderate population growth, particularly from interstate migration, will sustain the underlying demand for new houses in Queensland,” the report said.

Ms Lillicrap said other policy factors would also help bolster new home sales in the future.

“The easing of APRA’s lending restrictions and the RBA’s rate cuts have started to have a positive impact on the new home market,” Ms Lillicrap said.

“With the addition of the Governments First Home Loan Deposit scheme likely to see an additional increase in first homebuyer activity, we expect that the improvement in new home sales will be sustained.”

Source: realestate.com.au

Good news on the National First Home Buyers Scheme

Government gets green light to go halfsies with 10k home buyers

A controversial scheme that will see the Federal Government go halfsies with 10,000 first home buyers a year has been given a green light to go ahead.

This after the National Housing Finance and Investment Corporation Amendment Bill 2019 — which was first introduced to the House of Representatives on September 12 and the Senate on September 18 — was finally passed by both houses Tuesday afternoon.

In a joint statement with Minister for Housing and Assistant Treasurer Michael Sukkar, Treasurer Josh Frydenberg said the passage meant “first home buyers will be able to enter the property market sooner”.

The Bill covered implementation of the First Home Loan Deposit Scheme and the new research function of the National Housing Finance and Investment Corporation.

“The Scheme is designed to facilitate earlier access to home ownership for first home buyers, by providing a guarantee that will allow eligible first home buyers on low and middle incomes to purchase a home with a deposit of as little as 5 per cent,” the joint statement said.

“The Scheme will support 10,000 first home buyers each financial year.”

It said “the Government recognises that saving a deposit has become a more significant barrier to entering the housing market. It can take ten years for the average first homebuyer to save a 20 per cent deposit.”

The scheme is open to eligible applicants who have taxable incomes up to $125,000 a year for singles and up to $200,000 a year for couples.

“The Scheme will apply to owner-occupied loans on a principal and interest basis, and will be subject to regional price caps.”

As well as helping put FHBs into housing faster, the legislation created a new research body to “examine housing demand, supply and affordability in Australia”.

The race to beat affordability concerns amid record prices rises in recent years has also seen the Federal Government create the First Home Super Saver Scheme where Aussies voluntarily boost their super contributions — taxed at lower levels — to allow them to build a deposit for a first him.

Other measures in place include the allocation of $1 billion to the National Housing Infrastructure Facility “to unlock new housing supply, in partnership with local councils” and the release of Commonwealth land, including defence land, for housing development.

“These incentives have helped thousands of first home buyers enter the market. In the past year, more than 110,000 Australians bought their first home — the highest level since 2009.” the statement said.

Source: realestate.com.au

Logan wins with Queensland’s largest ever hospital expansion

Adult chemotherapy and acute care for the elderly are part of a host of new, upgraded and expanded healthcare services to be delivered at Logan Hospital is one of Queensland’s largest-ever hospital expansions.

The project, worth close to half a billion dollars, is currently the Palaszczuk Government’s biggest investment in health infrastructure and will deliver a massive boost to healthcare in Logan.

Construction on site commenced last week with the delivery of a new $9M rapid expansion 28-bed medical ward, and will also see Building 3 — home to both adult and paediatric emergency departments — rise by four storeys and have the ground level undercroft built-in.

Minister for Health and Ambulance Services Steven Miles said the scale of the Logan Hospital Expansion was unprecedented, increasing the capacity of the hospital by almost half to meet the needs of the rapidly growing community.

“This expansion will bolster existing clinical services and add an additional 206 beds and treatment spaces including five new medical wards,” Minister Miles said.

“The Queensland Government is building and expanding at Logan to ensure that locals receive the best care, and we continue to keep up with demand.”

Member for Waterford Shannon Fentiman said the Palaszczuk Government was investing in healthcare for the Logan region.

“We will also be upgrading and expanding the Emergency Department, Medical Assessment and Planning Unit, and Coronary Care, Palliative Care and Intensive Care units,” Ms Fentiman said.

“By providing new services like chemotherapy we are giving patients the opportunity to receive life-saving treatment close to home and close to their families.”

Clinical, support and operational service support areas in Building 1 and Building 2 will also be refurbished, including the Logan Maternity inpatient unit, birthing suites and special care nursery.

Minister Miles said work was also about to commence on the new Mental Health Decision Unit within the existing Emergency Department, which will provide a safe and quiet space for mental health patients to receive care.

“This dedicated space will mean appropriate, safe and personalised treatment for patients who present to the Emergency Department experiencing a mental health crisis, away from the hustle-and-bustle of the normal ED,” Mr Miles said.

Source: https://www.linkedin.com/pulse/logan-wins-queenslands-largest-ever-hospital-jason-sandhar/

Find out more: https://metrosouth.health.qld.gov.au/loganexpansion

FAST FACTS

Logan Hospital Expansion

Upgraded and expanded clinical services will include:

  • Five additional medical inpatient units
  • Emergency Department Short Stay beds
  • Coronary Care Unit
  • Medical Assessment and Planning Unit
  • Transit Care Hub
  • Infection Control
  • Intensive Care
  • Mental Health
  • Palliative Care
  • Satellite Medical Imaging including a new MRI
  • Endoscopy
  • Pharmacy
  • Pathology
  • Clinical Measurements Unit (Cardiac and Respiratory)

Upgraded and expanded support services will include:

  • Staff education and simulation suite
  • Griffith University Medical student area
  • Medical Staff Room
  • Staff dining room
  • Kitchen and upgrade to back of house offices
  • Clinical Equipment and Supply Unit
  • Biomedical Technology Services
  • Building and engineering workshop
  • High voltage electrical power feed

Logan Maternity Refurbishment

Maternity inpatient unit:

  • Six additional maternity inpatient beds, bringing the total to 36 beds
  • A mix of single and double rooms with ensuites
  • Facilities for partners, carers and families

Birthing unit:

  • Five additional birthing suites, bringing the total to 14 suites
  • Birthing pools for water immersion
  • Facilities for partners, carers and families

Special care nursery:

  • Additional cot spaces
  • Rooming-in capability for parents and babies

The City of Logan has a growing health and aged care industry and is expected to grow to accommodate the City’s rapidly increasing population.

Healthcare and social assistance is one of the largest industry by employment in the City of Logan.

The city is well serviced by skilled staff, with over 7,500 residents employed by the health and medical sector (NIEIR 2018).

Why invest in the City of Logan

Situated in South East Queensland, the City of Logan is positioned between the cities of Brisbane and the Gold Coast, with easy access to major motorways and rail corridors.

With 69 unique suburbs, from city living, leafy suburbs to rural/farming, there are business opportunities for almost any business.

With two Priority Development Areas, $18 billion in planned development Logan is experiencing its fastest rate of growth.

Logan has a diverse skilled workforce and affordable housing and land.

Source: https://www.linkedin.com/pulse/logan-wins-queenslands-largest-ever-hospital-jason-sandhar/

 

Global businesses invest in Logan

With a strong economic track record, historic levels of infrastructure investment in the pipeline and business confidence on the rise – the City of Logan has emerged as a global investment hotspot in South East Queensland.

The launch of autonomous drone delivery services in Logan by Wing – a subsidiary of global technology company Alphabet – is just one of the businesses that have funnelled a total of $100 million of private investment into the city over the past 12 months.

Logan is just one of four locations in the world that now has access to Wing’s air delivery service, which flies a range of convenience items by air in just minutes.

Under the helm of Chief Executive James Ryan Burgess, Wing will focus their Queensland expansion plans in Logan first, with select households in the suburbs of Crestmead and Marsden already having access to the service.

Mr Burgess said what made cities like Logan most attractive for investment was not only the demographic factors but the opportunities driven by growth.

“Logan is one of the fastest growing areas of Queensland, so that’s a great fit for us because drone delivery makes it much easier for people to get the things they need in rapidly expanding metropolises. Logan is also a very innovative community, and the growth and excitement around the city makes it a great place for us to start our Queensland operations.

Infrastructure investment

Logan is located in the heart of South East Queensland where around 70 per cent of the state live, and is predicted to be the second fastest growing city in this region.

In just over 20 years, Logan’s population is predicted to grow more than 50 per cent to around 548,000 residents.

This has led to an unprecedented level of infrastructure investment, with more than $18 billion of publicly funded projects underway to support the growing residential population.

Earlier this year, a $1.2 billion agreement – the largest of its type by any government in Australia, was signed by local authorities and private developers to build essential infrastructure in Logan’s Priority Development Areas Yarrabilba and Greater Flagstone.

This follows the completion of Transurban Queensland’s $512 million Logan Enhancement Project in August, which increased freight productivity by reducing road travel times along some of the busiest transport routes in the region.

Major infrastructure projects in the pipeline has triggered a surge in commercial activity along the Logan Motorway corridor, with large national and multinational businesses including Metcash Hardware, DHL, Queensland Logistics Service, Huhtamaki and Pinnacle Hardware setting up operations in Logan’s industrial precincts.

It’s not only the city’s efficient transport connections and affordable land driving this investment, Logan has advantages beyond its borders.

Within a 40 kilometre radius, Logan has access to a regional catchment of over 2.6 million people, a vast network of suppliers and a diverse pool of potential talent for employers to draw from.

GO1.com, the world’s largest on-boarding, compliance and professional development platform, recently relocated their headquarters from Brisbane to Logan to take advantage of this accessibility.

Co-founder Vu Tran said running a global company from Logan was a strategic decision for GO1.com and their future plans.

“Being in Logan has provided us with the opportunity and space we need to grow and also attract the talent that we need for our growing markets,” he said.

“Having businesses like Ikea, John Deere, Avery Dennison all based in the area means they are potential partners for us to engage with.”

GO1.com has offices in the United States, South Africa, Vietnam, United Kingdom and Malaysia, and is on track for further expansion, recently securing more than $30 million of investment led by M12, Microsoft’s venture fund.

Beginning a new chapter

The increasing investment in Logan is reflected in the city’s economic report card. A n annual 3.9 percent increase in the Gross Regional Product in the year ending 2017-2018 and the highest percentage of jobs growth in over fifteen years.

The arrival of businesses like GO1.com and Wing could mark the beginning of an exciting chapter in the city’s development.

For Wing, the city of Logan will be their largest investment in Australia to date and will play a role in shaping what the company will do in cities around the world.

“We’re really going to be investing here in Logan, learning as much as we can from the community and over time looking to apply that to other countries and cities that we may go to.” Mr Burgess said.

“For now, it’s all our attention on Logan and making sure we offer a great service for the community.”

Source: Logan Office of Economic Development

Everything you need to know about Park Ridge Town Centre

Park Ridge Town Centre is a well-established retail centre that has recently undergone a significant expansion to accommodate the growth of the primary trade area and is now anchored by both Coles and Woolworths Supermarkets. The expansion also included major upgrade works and now presents a fresh and welcoming appearance.

CENTRE TRADING HOURS
Monday – Wednesday: 9:00am – 5:30pm
Thursday: 9:00am – 9:00pm
Friday: 9:00am – 5:30pm
Saturday: 9:00am – 5:30pm
Sunday: 10:00am – 5:30pm
Specialty stores trading hours may vary.
Check with your favourite stores for individual trading hours.

COLES
Monday – Saturday: 7:00am – 9:00pm
Sunday: 9:00am – 6:00pm

WOOLWORTHS
Monday – Saturday: 7:00am – 9:00pm
Sunday: 9:00am – 6:00pm

Roll out of signage for Madison Park Estate

 

We’ve been working on it and it’s finally here!

 

The first of our Madison Park signage is currently being rolled out at the front of our estate in the form of a directional sign and bannermesh.

We are excited about making an impact on a large scale, clearly defining the name of the estate and making it stand out.

Our onsite signage roll out will be an integral part of our marketing and will work in conjunction with our upcoming promotional campaign of Madison Park Estate.

We understand many builders are looking for land in the high growth area of Park Ridge, contact us today and we can talk about supplying you with land!

Land sale enquiries are now open for builders, you can contact us on 0458 000 888.