Australian Urban Renewal Efforts Please Investors And Officials

<p>High returns on investments for housing developments in struggling and stagnant Australian city suburbs are helping to convince both developers and public officials to continue the outer-urban renewal efforts.</p>
November 21, 2007, 8am PST | Nate Berg
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"Desolate areas up to 15 minutes' drive from city centres, scarred by past industrial use and earmarked for development as urban renewal projects, often offer the best returns on high density residential investment, a new study has found."

"Early bird investors across Australia have enjoyed annual increases up to 27 per cent on the price of apartments over the first two years of their outlay, usually far above the single-digit growth of neighbouring areas."

"But there are some caveats -- in particular, don't pick an area where a rash of apartments will all be built at the same time."

"It found annual returns above 27 per cent in the first two years of the Docklands development in Melbourne, 26 per cent in Newstead in Brisbane and 23 per cent in Sydney's Pyrmont."

"The findings have provided a welcome boost to both developers and local councils proactively pursuing urban renewal policies."

"'It's been a policy that's been hugely successful for Brisbane,' says Alison Quinn, chair of the local urban renewal taskforce which started out identifying suburbs such as Newstead, Fortitude Valley, New Farm, Teneriffe and Bowen Hills for renewal initiatives. The area now set for new development has nearly doubled in size to more than 1000ha. The council estimates the private investment dollars injected into projects developed and delivered within the Brisbane urban renewal areas is $5 billion."

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Published on Saturday, November 17, 2007 in The Australian
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