Gen Y demand sparks suburban unit surge

Upper Mount Gravatt’s strong appeal to Generation Y renters and buyers is driving an escalation in apartment development across the middle-ring suburb, according to new research.An Urbis market research report on the area reveals that developers are being lured by the area’s outstanding links to education, employment hubs and public transport.Report author Paul Riga said these links were key drivers for Upper Mount Gravatt, particularly against a number of neighbouring precincts.“Proximity to key employment nodes, a comprehensive education offer and an abundance of established infrastructure and lifestyle amenity will position Upper Mount Gravatt as competitive compared to other suburbs within the catchment,” he said.Mr Riga said off-the-plan apartment activity in Upper Mount Gravatt had increased notably over the past 12 to 24 months.“It’s being driven by the locational opportunity provided by existing fundamentals in the area, the favourable interest rate environment, and investor demand,” he said.“The Upper Mount Gravatt catchment is likely to see continued growth in the investor market spurred by the high proportion of young people residing in the area.”Mr Riga said Generation Y was attracted to the area’s proximity to Westfield Garden City, Sunnybank, Griffith University’s Nathan and Mt Gravatt campuses, the M1, and the South East Busway.“This youth demographic will contribute to rental demand in Upper Mount Gravatt and its surrounding catchment, with the downsizer market also potentially a contributor,” he said.“The Generation Y demographic seeks out locations that provide a wealth of amenity within walking distance, connectivity to key destinations and access to job opportunities.”Population projections from the Office of Economic and Statistical Research indicate continued growth for the catchment with almost 1,300 new residents expected each year until 2036, a growth rate slightly higher than the Queensland average.Mr Riga said the upswing in apartment development in Upper Mount Gravatt would see prospective buyers presented with competitive pricing and diverse product.“New developments entering the market will need to be well price pointed, yet alsooffer an element of difference, whether this is provided by location, design, or internal/external amenity,” he said.The area’s strong fundamentals and outlook have set a solid platform for the $96 million Avion Residences, the soon-to-be launched debut project of Brisbane’s Raykong Property.Project manager Michael Sutherland, of PDS Group, said Raykong had timed its entry to the market well.“Upper Mt Gravatt really taking off because it is serviced by major retail, education, employment and public transport which is the backbone of its popularity with both owner occupiers and investors,” he said.“Raykong’s project will offer sweeping views, a rooftop recreation area, and retail and commercial precincts.”Avion Residences will comprise 174 two and three-bedroom apartments across two 15-level towers in Cremin Street, which is just 200m from Westfield Garden City.