CHERMSIDE'S POPULATION POISED TO DOUBLE
Written on the 7 May 2015
THE suburb tipped to become northern Brisbane's CBD will double its population and require more than 4250 new dwellings by 2036, according to new research.
Chermside's Suburb Profile, prepared by Resolution Research, reveals the area's proximity to Brisbane's fastest growing employment node, major retail and recreational facilities will underpin its growth to 18,500 people over the next 20 years.
Report author Diana Howes, director of Resolution Research, says Chermside's growth is underpinned by huge projected employment growth in the Australia Trade Coast region, which incorporates Brisbane Airport and the Port of Brisbane.
"By 2026, the region is expected to see its workforce grow by an estimated 50,000 workers to reach 110,000 employees," says Howes.
"The Australia Coast North region will record the highest employment growth in Brisbane over the next 16 years. That will push up the local population and create a significant need for new housing."
Howes' report finds Chermside already has an undersupplied rental market as well a strong underlying demand for apartments, which make up 40 per cent of all occupied dwellings.
"The strength of the Chermside apartment market has been underpinned by the suburb's locational attributes, public transport infrastructure, proximity to the CBD and major employment nodes and lifestyle amenity," says Howes.
Demand for apartments has been driven by a large Gen Y demographic, which makes up 32 per cent of the population, and the high proportion of lone (40 per cent) and two-person (25 per cent) households in the area, according to the 2011 Census.
At the time of the 2011 Census, the proportion of rental properties (58 per cent) throughout Chermside was well above the Queensland average of 33 per cent.
The report found favourable rental market conditions in Chermside with a 2.5 per cent vacancy rate, healthy yields and strong rental growth, particularly for one-bedroom apartments (17 per cent over the past five years).
"At the time of undertaking this research, there was a shortage of new, or near new one-bedroom apartments for rent in Chermside with only a handful of older, six-pack stock currently available for rent," says Howes.
The report found that over the 10 years to June 2014, the median apartment price within Chermside grew by an average of 5.1 per cent per annum.
"This is an impressive rate of growth, which outperformed that recorded throughout Brisbane's local government area over the same period," says Howes.
Developer Property Solutions has tapped into Chermside's growth potential and the strong demand for apartments with its $55 million Arbour on Charlotte project (pictured).
The sell-out of the initial stage of the apartment project has prompted Property Solutions to prepare for the release of the second stage - a 10-level tower comprising 74 one and two-bedroom apartments priced from $335,000.
Property Solutions joint managing director Kevin Miller says Chermside's popularity with renters and the Gen Y demographic has underpinned the success of the Arbour project.
"Chermside is a suburb on the brink of major growth proximity to the Australia Trade Coast region, Brisbane CBD and the Prince Charles Hospital has created a compelling argument for investing in the suburb," he says.
"Chermside offers excellent value for money with larger and more affordable apartments than can be found in the CBD ring.
"These dynamics have galvanised Property Solutions desire to deliver large spacious apartments to meet the requirements of long term tenants and owner occupiers."
Property Solutions' previous projects include Centro on James Street, the $350 million SW1 development in South Brisbane and more recently The Barracks, a $150 million mixed use and entertainment precinct in Paddington.