Is it time for Logan to make its mark?
GUEST OBSERVATION
Located between the two large urban footprints of Brisbane and Gold Coast, property investors are often attracted to Logan’s low property entry price and higher rental yields.
Demand for accommodation in Logan has been high based on its average annual population growth rate of 2.3% over the last decade - superior to the Australian average of 1.7%. This trend appears to be holding firm.
Population Growth | 2003-2013 | 2008-2013 |
| (10yrs) | (Post-GFC) |
Australia | 1.7% | 1.8% |
Queensland | 2.4% | 2.1% |
Logan | 2.3% | 2.2% |
Other than a spike in building approvals in 2010-11, Logan’s housing supply has been consistent with population demand.
Our research confirms that locations where developers are concentrating most on future supply include Jimboomba, Loganlea, Browns Plains, Waterford, and BEENLEIGH.
What Logan lacks most is sufficient local jobs. An unemployment rate of 6.4% is significantly above Brisbane’s 5.1%. According to Census data, of the 300,667 population 123,619 are employed although only 72,745 of these jobs are within Logan themselves.
The region’s biggest employment nodes are Springwood and Browns Plains and both catchments battle significant traffic congestion.
A largely blue-collar demographic, Logan’s biggest industries are:
- Manufacturing ($4.9 billion output per annum),
- Rental, hiring and real estate services ($2.4 billion),
- Construction ($2.3 billion),
- Retail ($1.1 billion), and
- Wholesale trade ($1.1 billion).
Transport and logistics, food manufacturing, and health care have been described as ‘emerging industries’ although there is very little tangible progress.
While the local government has been gallant in trying to improve its reputation with a ‘City Of Choice’ campaign, it still has a high rate of crime and a distinct lack of attractions.
With the supply-demand equilibrium expected to continue, I believe that Logan will to continue to performer steadily although better investing can be found in select pockets of Brisbane.
Simon Pressley is managing director of Propertyology, a full-time property market analyst, accredited property investment adviser, and Australia’s (REIA) Buyer’s Agent of the Year (2012+2013+2014).
