inSynergy clients who invested in Springfield Lakes and neighbouring Brookwater have experienced excellent returns, with new infrastructure and strong demand for property in the region leading to rising values.
Springfield Lakes and Brookwater are two of the suburbs created within Queensland’s Greater Springfield, a 2,850 hectare site which is Australia’s largest master planned community. For comparison purposes this is more than half the size of Cairns.
Since its beginnings in 1999, Springfield Lakes has grown to 10,000 residential blocks. It has an expected population of 30,000 once fully built and occupied.
In December 2018, only one block of land was left for sale in the entire 1200-hectare development, a strong indication of the suburb’s popularity.
The 448m2 block was priced at $310,500 by the developers, Lendlease, compared to a starting price of $105,000 for house and land packages back in 1999.
A recent bank valuation of one client’s Springfield Lakes property indicated 5 per cent capital growth since the property was completed in late 2017, equating to capital growth of $33,500 in just over 12 months, not including tax and depreciation benefits.
Considering bank valuations are traditionally very conservative, and usually 5-10 per cent below actual market value, this is a great result and indication of the trajectory of their investment, clearly showing the growth potential of this south-east Queensland suburb, which we identified in 2016/17.
This indicates the growth in these inSynergy recommended properties has been around 10 per cent whilst most Sydney and Melbourne properties have dropped in value by 10 to 15 per cent, making the relative return of these Springfield properties 20 to 25 per cent better than Sydney.
If you had used a 20 per cent deposit, in comparison to Sydney, your equity growth is double, so we are delighted to have helped these clients achieve such a great result and we firmly believe there is plenty of growth left.
The Springfield Lakes allure:
So what is it about Springfield Lakes that is so appealing to buyers? Well, it has a lot to offer in terms of amenities and lifestyle, not all of which were obvious to the untrained eye when inSynergy clients purchased there a couple of years ago.
Springfield Lakes has several awards to its name, including Best Master Planned Community in 2007 and National Winner of Best Master Planned Development in 2015.
It is home to 120 hectares of open space, 20 kilometres of hiking and bike trails, 28 different parks and almost 23 hectares of lakes.
Other factors contributing to its appeal include its proximity to Brisbane, good schools, sporting and shopping facilities, and a private hospital.
A number of new infrastructure developments are also in the works, such as a proposal for a new three-storey childcare centre which would accommodate up to 100 children and include 27 car spaces.
Additionally, a $67 million sporting complex in the Greater Springfield area is set to open in mid-2019, boasting four ovals, sixteen netball courts, eight fields, eight tennis courts, an athletics track, clubhouses and playgrounds.
The developer noted that $15 billion had been invested into the area’s infrastructure to date.
Early indications of potential:
All this is excellent news for our inSynergy clients who invested in Greater Springfield with our help in 2017.
At that time, we identified the region as Australia’s fastest emerging new city, located in one of the nation’s fastest urban growth corridors.
The master-planned development drew our attention because of its sustained growth and outstanding local infrastructure and community amenities, with precincts established to cater for all forms of health, wellness and education, and significant investment by private and public stakeholders.
It also included a $1.2 billion major rail and transport hub that was already a pumping arterial for the area’s success, with Springfield Central train station offering a 40-minute commute to the Brisbane CBD.
Springfield Lakes was of particular note in terms of location within the region and growth prospects, leading us to quickly place a number of clients in the suburb in 2017, which we’re thrilled but not surprised to see has clearly paid off.
As development and ongoing investment in local and regional infrastructure continues in Greater Springfield, we believe our clients will continue to see their property and land values rise in coming years. With Sydney property prices slipping backwards by 10 to 15 per cent already and possibly more over the next six to 12 months as new supply comes onto the market – this is a great result in anyone’s book.
We are very glad to be able to deliver this good news while the media has been portraying such a grim light on property in general.
Over the coming months, we’ll be profiling some other areas inSynergy has recommended, but in short, almost all areas our clients have invested in the past 12 months have grown by five to 27 per cent, while achieving far better rental returns and tax benefits than Sydney and Melbourne properties.