Invest in Rockhampton | Queensland
Rockhampton Economic and Market Update May 2015
Why invest in Rockhampton?
“Rockhampton is on the way back; property analysts Terry Ryder and Michael Matusik agree.”
Recent facts about Rockhampton…..
Education – Central QLD University is Australia’s newest Dual Sector University; offering both higher education and vocational training.
Tourism – over 1.25 million visitors to the region each year. With the $600M Great Kepple Island and Kepple Bay Marina redevelopment this number is set to increase significantly.
Government – Shoalwater Bay Military Training Area – one of the ADF’s largest trading areas providing a regular boost to the local economy.
Rockhampton is also the Government Administration Hub for Central Qld covering both State and Federal levels.
Business – Australia’s Beef Capital; sporting two of the largest abattoirs in Australia.
Aurizon (formerly QR National) Australia’s largest Rail freight company has their headquarters based in Rocky.
Strong private investment in Commercial and industrial property in Rockhampton.
All this means one thing = jobs.
Jobs across multiple industry sectors which provides stability and a platform for economic growth. Jobs attract population growth!
Economic Development
Rockhampton is a major service centre for the fast growing Central Queensland area. Boasting a well diversified economy in manufacturing, tourism, retail, community services, education, health services and primary production. With the Region generating in excess of $5.2 Billion in economic value last year
Located only an hours drive from the burgeoning Gladstone who currently has over $40 Billion Dollars of projects at the beginning of their implementation and another $50 Billion in planned projects. Those who cannot afford to live in Gladstone are moving into a more affordable Rockhampton
There is much more to Rockhampton than Resources in the area with over 8,000 businesses and a turnover exceeding $15 billion of economic value each year. This will increase on the back of close to $130 Billion of investment into new projects in the Region
Rockhampton Region
The Rockhampton Region is a busy service hub within the State of Queensland in Australia, and home to Rockhampton City as well as Gracemere, Yeppoon, Emu Park, Mount Morgan and smaller towns.
Located within the Fitzroy Resource Area, it enjoys reliable water supplies from the second largest river basin in Australia and infrastructure upon which 100% of Australia’s freight rail connectivity between economic activities above Gladstone and the rest of Australia depend – important for the Bowen and Surat Mining Basins.
Choosing the Rockhampton Region as a HQ location or service centre offers business the benefits of world class communications links, energy infrastructure, water infrastructure, labour quality, and both international and domestic freight networks (rail, road, sea, and heavy-lift air freight), linking to 50% of global GDP foreign markets with the benefits of current and planned Trade Agreements.
Economic Growth
The Rockhampton Region as at September 2010 grew by 3.3% and is well positioned within the Australian economy, especially in regards to its role as a service hub servicing the Resources, Energy, Defence, Medical and Agricultural business across Queensland and providing these services well beyond its own borders and across Australia
The Rockhampton 2050 Report quotes “Rockhampton Region is admired for its strength, resilience and ability to embrace change – a place that our community values and others admire – one of the most liveable communities in the world.”
It can be estimated at global, national (GDP), state (SDP), statistical region (GRP), or municipal area level. The emphasis here is on estimation, because it is very difficult to calculate within country borders due to the lack of customs and other data. The Rockhampton Region Gross Product (RRGP) has been estimated by three parties within the last 12 months and there are differences of opinion.
The three estimates of the Rockhampton Region Gross Product are:
- $5.179 Billion for the 2009/10 year, and (NIEIR, 2010)
- $5.22 billion in the 2007/08 financial year by AECgroup (AEC, 2010)
- $4.59 billion in the 2008/09 financial year by Central Queensland University (2010)
This makes the Rockhampton Region one of the fastest growing economies in Queensland
Summary :
- 5,600 new jobs created across central Queensland (including Gladstone)
- Supporting 7,800 businesses
- Exports in the region up by 15% during 2012, expected to surge once new CSG and Coal projects begin to produce resources. Currently coal makes up 60% of the regions exports
- Exports to Japan make up 36%, followed by India at 20%, then South Korea with 12% and lastly China at 10%
- CSG and Coal projects expected to export over $125 Billion per annum once these major projects come online in the next 3 to 5 years
- Only 5% of Rockhamptons residents work in the mines with the rest supporting local Industry, with very few fly-in fly-out workers
Population
OESR 2011 count the population of Rockhampton at 115,526 persons with an average age of 37 years and continues to keep pace with the Australian average population growth rate of 2% equating to around 2,500 new residents a year into the forseeable future … and a strong underlying demand for new detached housing
Rockhampton Region is ranked 24th fastest growth area in the State
Land and Housing
From 2005 to 2008 the average property values rose by 32.48% and continues to average well above CPI
Over both the five and ten year periods, the Rockhampton Region suburbs have performed very well in terms of value growth. It is important not to misinterpret this data as indicative of the attractiveness of static housing stock over this time, however, as a portion of the value growth may be through increased prices for untouched or renovated existing houses and land (e.g. The Range) but also can be influenced by the region attracting new investment leading to the construction of more valuable replacement or additional housing stock. Rockhampton is displaying an opportunity for investors to capitalise on their investment and earn strong rental incomes at the same time
Current rental yields are tracking around 5% and beyond as demand for rental properties increase due to population growth into Rockhampton. Remembering that Gladstone (an expensive city rent wise) is only an hours drive from Rockhampton hence those wanting cheaper rentals are moving into Rockhampton
Rockhampton Regional Council received 728 new Development Applications in the first half of 2010
Why are people calling Rockhampton home Rockhampton growth town
Initially Rockhampton was slower to ride the upswing of the Resources Industry in the region, but now this emerging city is struggling to keep up to a very high demand exacerbated by a low supply of dwellings needed. At the moment around 1000 homes are needed and only around 550 were built in 2012 leaving a growing shortfall
The Rental market in Rockhampton is very tight and the demand for new properties is rising. This has resulted in the value of properties increasing and also rental yields growing making Rockhampton an Investment Opportunity for landlords wanting around 6% rental yields and an almost non-existent vacancy period
Population growth due to a rapidly growing economy will push the current 48,000 homes to the limit creating a need for over 1,000 new dwellings each year in Rockhampton itself, meaning that Rockhampton is under-supplied forcing a move to nearby Gracemere or Yeppoon. Council has failed to release sufficient land closer to town, even under current demand levels
Summary :
- Value for your Investment dollar compared to most of Brisbane, Gladstone and Mackay
- Shortage of dwellings to live in
- Rising demand for new dwellings
- Shortage of Rental Properties
- Increased Rental Yields
- Exceptionally Low Rental Vacancy
- Rise in number of properties being sold
- Price Increases
Employment
The Rockhampton Region has averaged 2.84% per year from 2003 to end 2009 and continues to show ongoing signs of strengthening based on the amount of projects on the go and scheduled to come to fruition through out the whole Surat Basin
NIEIR estimates that there has been a 52.69% increase in jobs within the Rockhampton Region between 3rd Quarter 1991 and 1st Quarter 2010, including 4.6% growth in the number of jobs overall between 3rd Quarter 2006 and 1st Quarter 2010. Also NIEIR estimates that there has been a 89.2% Increase in Total Income within the region over the same period
Currently, the highest share of jobs in the Rockhampton Region is in ‘Health and Social Assistance’ and ‘Public Administration and Safety’. Retail, Education & Training, and Construction are the next most significant employers
- See Economic Development above for further info
Industry Sectors
- Services category (68000 jobs) (OESRb, 2010)
- The Construction (13500 jobs)
- Manufacturing (10200 jobs)
- Mining (8300) sectors (OESRb, 2010)
- The Agriculture (4900 jobs) and Utility (1900 jobs)
- Forestry and Fishing (uncertain)
Of all the industries active within the Rockhampton Region, the top 11 industries by estimated value of total output (NIEIR, 2010) are:
- Over $500million each: Construction Trade Services & Electricity Supply
- Over $240million each: Other Construction, Communication Services, & Retail Trade
- Between $200 – $239 million each: Other Property Services, ‘Rail, Pipeline, and Other Transport’, Education, Government Administration, Residential Building, & Health Services.
The significance of industries isn’t only in what they sell – the economic activity they generate through wages and salaries plus business income (Value Added) is of vital importance within communities. Of all the industries active within the Rockhampton Region, the top 10 industries by estimated Value Added (NIEIR, 2010) are:
- Over $200million each – Electricity Supply & Construction Trade Services
- Between $140 – $200million each – Education, Health Services, & Ownership of Dwellings
- Between $100 – $139million each – Retail Trade, Government Administration, ‘Rail, Pipeline, and Other Transport’, Communication Services, Community Services
- Primary Production – Crops and Livestock estimated at over $150 million today
Tourism
Rockhampton is attracting around 950,000 visitors each year with a 12% increase over 2011 and tourism nights expected to grow in excess of 1.8 million through 2013. Close to $720,000 passengers now travel through Rockhampton Airport which recently expanded its facilities to cater for an influx for both domestic and international travel. This traffic has increased by over 22% per annum over the last 10 years
Recommended House and Land
Varsity Parks is situated in Norman Gardens, on the northern end of Rockhampton and only 5 minutes from the CQ University Campus
Packages include 4 bed 2 bath & 2 car, size of home approx. 170m2 priced from $420k.
Land is registered meaning no delay in proceeding with our investment or your Home.
The local valuation company MVS logan and Opteon are bringing valuations in on the dollar. HTW are coming in approx. $10k short (about 2.5% variation) out which is awesome.
Demand for Rentals in the area is High. Rents are increasing at present due to a shortage of available new homes in the area and are appraised at $420 – $440 per week; a yield of 5.5%.
The immediate area itself offers all of your daily needs, including a choice of schools:
- Heights College
- Both Glenmore Primary and Secondary Schools
- St Anthony’s School
- Parkhurst Primary School
- Keetslea Childcare and Parkhurst Early Learning Centre.
For retail therapy, the following are all within a few minutes of home:
- Big W is literally just around the corner
- Stockland Rockhampton
- Red Hill Homemaker Centre
- Bunnings
- Masters
- Northside Plaza and K-Mart Rockhampton
- Norman Green Shopping Village to be developed next door to Varsity Park – anticipated construction start date mid 2015.
When it’s time to relax, explore Varsity Park’s bushland reserve, take a stroll through the Limestone Creek Environmental Reserve, enjoy the beaches at Yeppoon just 35 minutes away, or hit Great Keppel Island for the weekend and snorkel on the Great Barrier Reef.
