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PROPERTY MARKET FOCUS: SPRINGFIELD



Our research team are always on the lookout for new, up-and-coming suburbs around Australia which show strong capital growth prospects.


Springfield is a well-positioned suburb of Brisbane ticking the macro and micro fundamentals. This article will dissect the property market, revealing our key findings from an investment perspective.


Market Location And Key Amenities.


Springfield is located 25km south of Brisbane CBD, which is 30 minutes by car or 35 minutes by train. The suburb is within close proximity to all local hubs and amenities including:

  • 25 minutes to Ipswich CBD;

  • 1 hour to Gold Coast CBD;

  • Availability of two train stations in the suburb: Springfield and Springfield Central Station;

  • Bustling shopping precincts: Springfield Central and Springfield Fair - Shopping and Dining;

  • Springfield commercial hub


Property Market Overview.



The Springfield property market continues to grow and diversify as a major second city of Brisbane in its own right.


The market experienced a strong performance in 2020 achieving 7.4% capital growth in the residential housing market [1]

Springfield is part of the Greater Springfield master plan which has been recognised nationally and internationally as one of the best master-planned communities. The master plan is expected to create 54,000 jobs after an enormous $85 billion worth of investment by both private and public stakeholders [2].


The master plan encourages the building of modest family homes, commercial and entertainment precincts as well as many key amenities attracting both homeowners and investors alike.


Both federal and state governments have been supporting the master plan and actively investing in the Springfield market resulting in key infrastructure projects.


Some of these key projects include:

  • The University of Southern Queensland: Springfield campus opened its second major building in 2015 with a total cost of $45 million. [3]

  • The delivery of two main train stations and a major rail extension: Springfield and Springfield Central station. The extension includes 9.5km of dual track and the two stations were part of the $475 million Richlands to Springfield rail extension project supported by the Queensland and Commonwealth governments. [4]

  • Stage one of Mater Private Hospital Springfield: A leading hospital including a state-of-the-art cancer care centre, partially funded by $21.4 million from the Australian Government. [5]


As the Springfield region continues to grow in popularity attracting new residents, further infrastructure will continue to be implemented to cater for the additional demand placed upon the market.


It was recently revealed in a joint media statement that The Palaszczuk Government is supporting a major hospital expansion, which will deliver a new public hospital in Springfield.

Dissecting The Projects.


The State Government will partner with Mater Health Services to deliver a new 174-bed public hospital in Springfield to cater for the rapidly growing population in the Greater Ipswich region. The major infrastructure project will be built using private funds but the state government is also expected to provide an initial $177 million in funding in the next budget. The public hospital is expected to be operational by 2024 [6].


Mater Private Hospital Springfield


Another key project that underwent a major expansion and was completed in 2016 was the Orion Springfield Central.


The major expansion introduced a cafe and dining precinct, an entertainment precinct and the shopping centre now includes over 180 speciality stores.

Orion Springfield Central


As this Greater Springfield master-planned city continues to grow and develop it will benefit from the multi-billion-dollar investment in infrastructure spending into the market itself. This undoubtedly will attract home purchasers as well as investors for many years to come as the Springfield market continues to grow and ripe for investment.


Property Market Statistics.


  • Vacancy rates (May 2021) 1.3%

  • Rental yield of houses (June 2021): 4.4%

  • Owner-occupiers in the market (2016): 62%

  • Average household size (2016): 3.2 people


In 2020 the housing market in Springfield experienced a total of 7.4% sales growth.


Key Takeaways.


Like with any investment property the macro and micro fundamentals need to be assessed before selecting a suitable market and property.


Our comprehensive service provides property investors with support through the entire process, from initial fact-finding and property acquisition to negotiation, purchase support and ongoing portfolio review - we assist with it all. Learn more about our comprehensive service.



Looking to get the property investment conversation started?

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Jarryd Gauci – Property Investment Consultant


P: (02) 9939 3249


E: jarryd@meridianaustralia.com.au


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Disclaimer: When considering purchasing a property, it's always prudent to seek the advice of an appropriately qualified professional to determine which strategy is most appropriate for your individual circumstance.


References:

[1] PriceFinder

[2] Springfield Town Centre Plan

[3] USQ Edu Facility Management Projects and Planning

[4] Translink

[5] Mater Online

[6] Queensland Government

[7] SQM Research

[8] ABS, Census 2016 Findings