Knight Frank / 307 Princes Highway, Albion Park Rail / 7
Market overview
With a solid future pipeline, developer confidence is clear, with the market well placed to absorb supply. The strong economic fundamentals and solid foundation as a regional capital, its relative affordability and changing landscape of the office market will continue to strengthen the housing market as a location to live and invest in the future.
Port Kembla gas terminal Australian Industrial Energy (AIE) is developing NSW’s first energy import terminal at Port Kembla near Wollongong. With NSW currently importing more than 95% of the natural gas it uses from other States, the Port Kembla Energy Terminal will deliver a new source of energy to the market to meet predicted supply shortfalls and could supply more than 75% of NSW’s gas needs. It is estimated the Project will create around 130 – 150 jobs during construction and between 40 – 50 ongoing roles at a cost of around $250 million. BlueScope major projects BlueScope has >$2B of major projects in the pipeline. Five major manufacturing projects are either approved or approaching final investment decision (FID), including: • $1B+ | 6BF Reline • $414M | Metal Coating Line 7 (MCL7) | Approved • $400M+ | Advanced Steel Manufacturing Precinct (ASMaP) • $150M | Berth Upgrades (Project CLIP) | Approved Phase 1 Berth Repairs • $70M | Pipe & Tube Mill | Approved Port Kembla master plan • 18-month program to create a ‘vision’ for the re- imagination and transformation of land surplus to steel making needs • Appointed world-leading architects and urban designers, Bjarke Ingels Group • Should unlock a wide range of new uses and enable significant long-term economic and social value for the whole Illawarra.
The Illawarra; a strategic gateway location The last decade has seen a strong expansion from education and tech businesses in the CBD, which have joined professional and financial services as among the largest office occupiers. Wollongong’s office market is up to 33% more cost effective than Sydney, Melbourne or Parramatta CBDs and has a higher staff retention rates. The advantageous access to a continual supply of job-ready graduates from one of Australia’s top universities, together with the city’s strategic and compelling connectivity to both Canberra and Sydney. New infrastructure and projects The Waterfront Shell Cove The Waterfront, Shell cove is a major coastal master-planned residential, commercial and tourist development located within the Shellharbour local government area, located approximately 10km from Albion Park Rail. Shell Cove is the largest coastal tourist/residential development ever initiated by a local government authority in Australia. Once fully completed the $1.5 billion development will offer over 3,000 prime residential lots, 275 berth marina, hotel and community facilities. The world-class Shellharbour Marina, Dining Precinct and waterfront Tavern all opened in late 2021. A state of the art community centre, library and Crowne Plaza Hotel are all currently under construction and expected to open in 2025. The project is being delivered by Shellharbour City Council and Frasers Property Group has already created hundreds of jobs for the local community and upon completion will become a premier tourist destination on the South Coast.
Source: Knight Frank Wollongong Insight Report 2023 & BlueScope Major Projects Update i3net Town Hall 2023
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