Australian Property News

Kippa-Ring positioned for price growth with election promise of rail

Posted on Thursday, July 29 2010 at 9:14 AM

Kippa-Ring property prices will surge if the Australian Labor Party (ALP) wins the Federal Election and delivers its pledge to build Brisbane a $1.15 billion Moreton Bay train connection from Petrie to Redcliffe Peninsula

As Prime Minister Julia Gillard announced the ALP’s rail election promise yesterday, in a tactic to arguably win support from three marginal seats in the area, residents on the Redcliffe Peninsula questioned what impact it would have on their house prices when it’s eventually finished in 2016.

According to Herron Todd White property valuer Kieran Clair, it’s Kippa-Ring, the suburb at the end of the proposed line from Petrie, that will benefit most.

Other proposed suburbs along the train line include Kallangur, Murrumba Downs, Mango Hill (North Lakes), Kinsellas Road, Rothwell and Kippa-Ring.

“I think that area has lived in some expectation that eventually it will be connected by train,” said Clair.

Because the rail line has been touted for some time and is even pencilled in on major street maps, Clair said people have probably already factored the boosted price into their investment capacity.

On the other hand, he said, you have many still saying “I’ll believe it when I see it” and haven’t prepared themselves for the potential growth this type of new infrastructure can have on an area.

“In a case like this, it’s when the work is well under way that’s when you’ll see some general improvement in the potential for capital growth,” said Clair.

“I think the established area at the end of the line at Kippa-Ring is where the greatest impact will be.

“Residents in Kallangur are already well serviced by Petrie and are used to having the train service, and newer areas like North Lakes are two minutes from a major highway and already carry a premium price.

“These areas will be positively impacted but won’t be as dramatic as the end of the line,” said Clair.

While it’s difficult to quantify the percentage growth in price, he said that infrastructure on this scale will more often than not enhance locations and make them more accessible to the CBD.

Herron Todd White property valuer Doug Shobbrook agreed the train line would definitely have the greatest impact on the Kippa-Ring area, particularly in the pocket immediately where the train station will be positioned.

He said the train would predominantly travel along an undeveloped land corridor from Petrie to Kippa-Ring so there shouldn’t be any negative impact on price, except for maybe one street alongside the track where the train will begin to brake close to the proposed Kippa-Ring station location.

Of the suburbs on the Redcliffe peninsula, Kippa-Ring offers the cheapest entry-level housing because it’s the only peninsula suburb without water frontage.

He said in this area, investors could still find a three-bedroom, one-bathroom house in the low $300,000s.

“I think it’s going to have a very positive impact compared to the surrounding suburbs, particularly because it’s coming from a fairly low base.”