WHERE TO BUILD AN APARTMENT COMPLEX WITH ATTACHED RETAIL CENTRE

In this informative analytical report, the researcher intended to provide an analysis of an apartment complex investment project with a precinct that incorporates café, restaurants, and other retail businesses. Nonetheless, the study was specifically concerned with the factors that could influence location choice and design of the apartment complex with a precinct in Brisbane area, and more particularly in New Farm. Important factors for analysis were consumer preference, interior design, market conditions, geographical location and a comparison between suburbs. Data was collected through surveys to establish consumer preferences. All the other factor was analyzed using data from relevant data bases such as Australia Bureau of Statistics. The research explored the customer expectations and behaviours to establish the customer factors that could influence their choice of an apartment with and a precinct dwelling.

Data was collected from a survey using a sample of 20 respondents to establish the customer preferences in the real estate business and particularly in the apartment complex. Further, the research conducts an industry research of residential apartment’s real estate markets. Highly eligible areas suburbs economic conditions will be also analyzed in Brisbane to establish the demographics, income, and property market. Market conditions in Australia and New Farm Area Australia economy is described as a highly developed economy with a GDP of USD1,500. gov. au, 2018). About new Farm, the average weekly income for residents by age indicates that residents of 35-55 years old are the group with the highest income per week. On the other hand, more elderly people average income per week is also higher compared to the younger residents but lower than the middle age persons.

Average Weekly Income by Age in New Farm SOURCE: https://homesales. Also, although these figures are giving sufficient evidence that investing in Australia or new farm could be valuable, it is important to understand that the average income of the persons between 35 and 55 is high. Therefore, real estate investors should target the group in the location because it may also have a higher disposable income that could be utilized in the real estate. Besides, we consider apartments designed to host family, rather than personal rooms to have a better value because the family has a higher income per week, which dwellers, could use to cater for apartment services or even buying property. The Real Estate Industry In the past five years, the real estate industry in Australia is characterized by a booming residential property market.

The prices of the houses have had a significant growth over the period. The national median price index reduced by 0. 3% in the month of December 2017. The biggest contributors to the fall being major property price fall in Darwin and Sydney. Accordingly, the national home value growth reduced in 2017, only hitting the 4. 2% mark, compared to 5. Geographical Location For the purpose of this section, we consider factors highlighted in Lahoz (2007) and Smersh, Smith and Schwartz Jr (2003). This is in recognition that in real estate business, the value and the performance of an investment is dependent on the geographic location of the apartment. Lahoz (2007) describe the factors that make locations attractive to be their proximity to shores, have beautiful vicinity, good infrastructures such as rails and roads, they are near forests, away from noise, and easy access to private and public services (Lahoz, 2007).

Smersh, Smith and Schwartz Jr (2003) highlight the specific geographical factors that are critical for consideration in a real estate investment. They are the physical characteristics of a location that affect the development suitability. New Farm is only 2 km from central business district of Brisbane city in the eastern side of the city. It was particularly located on the bend of the Brisbane River. Although new farm is almost surrounded by the river, it is accessible from the north through Newstead and North West side through the fortitude valley. New Farm has a main street known as Brunswick Street that moves from the southwest parts through to northwest side. Long lines of trees, tall apartments, shady streets, and Queenslanders-styled buildings characterize the southern part of the street.

This study begins by providing an overview of the New Farm area in the property market. The data was collected from (Homesales. com. au, 2018) New Farm population of residents 11330 Average income $1087 median price for houses is House $1,460,947 Units $504,826 Average Vendor Discounting 1. 06 % rental return 2. Average Vendor Discounting 6. 76 % House prices growth 11. 97% in the past 3 years and -3. 05% in 2017 Average Rent (weekly Gross) Houses $485 Units $390 rental return 3. 62 % Average Listing Duration days Houses 84 days Units 91 days Median Value Growth Houses Source: https://homesales. Median Rent (weekly Gross) $800 $ 545 rental return (Weekly House 2. 99% Unit 5. 12% Average Listing Duration days 126 days 126 days Vacancy rates Source: https://homesales. com. au/location/teneriffe-qld/ Comparing the three locations, New Farm indicates that $1087 compared to Teneriffe and Kelvin Grove of $1348 and $855 respectively. Accordingly, it is ideal to consider providing relatively cheaper housing units when considering locating a precinct in the new farm area.

Consumer Expectation A consumer expectation is a critical factor that influences the decision of a user of a service and therefore, it could influence the investor’s decision to invest in an apartment complex with a retail precinct. Almsalam (2014) describes customer expectations as preconceived beliefs, attitudes, and notions, about a product or a service. The scholars continue to explain that customers often have prior information before they consume a product, which makes the customers have expectations about the upcoming service or product consumption. Further, the scholar finds out that consumer expectation has a direct relationship with the consumer satisfaction and thus, it has a significant impact on the customer’s brand choice and retention. Interior design Not at all important A little important Somewhat important Fairly important Highly important 2.

Availability of a retail section in an apartment Not at all important A little important Somewhat important Fairly important Highly important 3. Low cost Not at all important A little important Somewhat important Fairly important Highly important 4. Accessibility Not at all important A little important Somewhat important Fairly important Highly important 5. Interest rate Not at all important A little important Somewhat important Fairly important Highly important 6. They were asked to name the types of retail stores they would like incorporated in the precinct. The retail shop included grocery, restaurant, boutique, electronic, cosmetic, homewares, or departmental stores. Demographic information of the respondents was also captured in the survey to try to relate the preferences of the customers and their demographics. The respondents were selected randomly from shoppers and residents of the Brisbane area.

20 interviews were conducted and the response rate was 100 %. Availability of a retail section in an apartment 1 2 2 2 2 3 2 2 1 2 1 20 3. Low cost 1 2 2 1 1 2 1 1 1 2 1 1 4 20 4. Accessibility 1 1 2 3 3 4 1 2 3 20 5. Interest rate 1 1 2 1 2 1 2 2 2 2 1 2 1 20 6. Image of the developer 1 1 3 1 2 2 1 2 4 1 2 20 7. com. au (2018) that indicates the preference of the youth and young professional to choose apartments that increases their accessibility to play stations, workstations, and other social places. Further, four of the young respondents indicated the cost of hiring an apartment to be highly important, while 2 of them indicated that the cost was fairly important. Therefore, we consider that the cost, that when the cost of an apartment was high, then such an apartment would not attract the youth, particularly those below 25 years of age. Nevertheless, older respondents with higher income indicated little concern for the price of the apartment, but they both indicated a higher preference for proximity to emergency services and cleanliness.

Therefore, when choosing an appropriate location for the apartment, the developers must locate it in areas near schools, hospitals and other social amenities. In addition, the developers need to consider the perception of the consumers about the appearance of the apartment, and perhaps the appearance of the suburb they are about to locate the apartment. Finally, the developers need to design the interior in a way that matches the consumer expectation and preferences. This is because the survey has also proved that the consumer preferences and expectations can easily influence their service consumption behaviour. Nevertheless, it is difficult to assess entire consumer expectations and preferences in a single study. This is a successful residential development project in both its retail and residential sectors, wherein premium residential apartment complexes are combined with a successful retail precinct, which includes cafés, restaurants, and grocery stores.

We consider that since the precinct is an award-winning project, most of its design would offer invaluable insights about how a successful precinct should look like. Kelvin Grove Urban Village (KGUV). Source: https://mindhive. org/content/uploads/2016/09/0635bb74-fee1-486e-9573-d514f816545f/636088460071804912_2d4822ac062f778fb17ea5bb003a45ca. The distinct features of the village are; I) living in a healthy urban place with a greater urban sustainability. II) Social sustainability feature, which allows a just community for all regardless of their incomes, ages, and tenures. III) The economic creativity that allows high tech infrastructure, university involvement, and partnership with the neighbourhood. IV) Living in a place that celebrates cultural heritage and good design (Kelvin Grove Urban Village Kelvin Grove, Brisbane, Queensland, n.

d. Also, the median house price is medium compared to other suburbs while the income exhibits higher average income for residents of Brisbane compared to national average. Geographical location is a key element, in establishing a precinct with the apartment complex. River Brisbane is a key natural resource that is a critical element in real estate investment not only in the new farm but also in Brisbane at large. Recommendation The investors who want to attract people of all ages and different economic backgrounds, this study suggests that investors should design apartment complex and precincts that maintain a diverse mix of housing, and still uphold the principle of low-cost housing. The housing should also be accessible and be near rail stations.

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