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How Margate benefits from the Kingston boom
In the June print edition API explored the Margate and Kingston property markets, now let's see how one feeds off the other's boom. Nicole Navarro
Kingborough Council says any new improvements in services and amenities in Kingston will further benefit Margate because of its close proximity to the satellite city.
While the Kingston bypass will speed up travel time for commuters from Margate and further south, for Kingston residents the detour will mean the bustling Kingston centre running along the Channel Highway will be easier to access and become a safer and more tranquil area for locals.
The Kingston High School reopened this year at its new site adjacent to the Kingborough Sports Centre. The school now accommodates around 700 students and will take advantage of the state gymnastics centre, the netball courts, basketball courts, fitness centre, table tennis centre and martial arts studio.
Twin ovals have recently been completed within the Kingborough Sports Centre precinct. The football oval is now ready for the Australian Football League season and the cricket oval will be ready for the 2011/2012 summer season.
The Channel Court shopping centre, with anchor store Big W, is situated along Kingston's main thoroughfare; its owner has submitted an application to complete a third stage, says council.
Future plans include a cinema and supermarket.
Nearby a Coles store exists along the Channel Highway and a Woolworths is positioned on Maranoa Road.
While two retail shopping centres currently exist in Kingston, demand for a third exists. Currently a development proposal exists for a shopping centre outside of the CBD.
Council says opportunities to develop three or four hectares of commercial land in the Kingston CBD currently exist.
Commercial developments do need to pick up the pace however because in more recent years residential growth has outstripped it, says council.
One of the major employers in Kingston is the Australian Antarctic Division headquarters of Australia's Antarctic program, which employs 300 workers in the summer and 500 in the winter. Other residents either work in Kingston or commute to jobs in Hobart.
Tip for good returns in Kingston: Areas within a 10 to 15-minute walking distance to the two main shopping precincts would see highest rental demand, says buyers agent Rob Zubin of My Property Hunter.
He says other Kingston housing includes a mix of original 1950s and 1940s housing scaling up to newly developed houses, some priced from $550,000.
Zubin suggests the strongest Kingston investment would be a townhouse in the high $200,000s achieving $320 to $330 returns per week, or a house in the mid $300,000s achieving a healthy 5.5 per cent rental yield.
Case study | A boatie's paradise
- Name: David Shaw*
- Lives: Margate
- Invests: Margate
- Properties: 1
- Strategy: Buy and hold
David Shaw* purchased a three-bedroom brick house with water views in Margate four years ago for $240,000. It's now valued between $360,000 and $380,000 and can achieve a return of between $300 and $320 per week.
The property is within an easy walk to the boat ramp and main shops on Channel Highway, he says.
David bought in Margate when talk of the Kingston bypass was heating up and he knew that it would only positively impact the area and its property prices.
Now he expects even further capital growth with the new shopping centre proposed, the expanding marina facilities, the recent upgrades to Dru Point parkland and the new museum soon to open.
He adds that the primary school has an excellent reputation, which helps attract families to the area.
David says while a development application for the existing marina expansion is currently at appeal stage, a second marina is being talked about and a new hotel for the golf club is also on the agenda.
"Anywhere with water position and views will always have potential to see good capital growth," he says.
* Name changed for privacy purposes
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