Masterplanned Communities in Australia: Are They a Good Investment?

The Australian residential development landscape is changing, with modern home buyers now focusing on community satisfaction, affordability, and walkable neighbourhoods over traditional large land parcels. This shift is a key driver behind the rising popularity of masterplanned communities across Australia, which provide all essential amenities within a short distance.

This raises a crucial question for homeowners: are these self-contained neighbourhoods a wise investment? While their appeal to modern lifestyles is clear, investors need to look into the data on capital growth and other long-term drivers before they decide to purchase.

What are masterplanned communities?

A masterplanned community, or ‘the 20-minute neighbourhood’, is a large-scale project designed from the ground up by a property developer. They differ from traditional suburbs, which grow organically over time. Everything from residential homes to parks, roads, and amenities is planned simultaneously, creating a more cohesive and connected neighbourhood.

This approach is particularly appealing to homebuyers who want to balance cost-of-living pressures with a higher quality of life, which is why masterplanned community developers often build in regional and outer suburban areas.

What are some common features of masterplanned communities?

Integrated development is a core principle of masterplanned communities. The ‘20-minute neighbourhood’ concept hinges on easy access to daily needs - including shops, schools, parks, and public transport - all within a 20-minute walk, bike ride, or public transport trip from home. Let’s take a look at some common features.

1. Plenty of green space

A primary feature of masterplanned communities is the strategic allocation of green spaces. Communities are often designed with expansive parklands, sports ovals, and interconnected walking and cycling trails. The Fairwater community in Blacktown, New South Wales, was built on a former golf course, which allowed it to preserve and rejuvenate existing trees and waterways with 9.5 hectares of dedicated open space, including lakes, ponds, and a network of cycleways.

2. Essential infrastructure

Creating self-contained neighbourhoods involves ensuring access to essential infrastructure. This includes amenities like schools, clinics, shops, transport links, and childcare centers that serve the community. While some of these facilities are developed directly within the community by the primary developer, others may be delivered by local or state councils as part of broader regional upgrades nearby.

3. Thoughtfully designed streetscapes

Masterplanned communities have a clear visual identity. A distinctive combination of housing styles, wide streets, and broad, landscaped verges can unify form and aesthetic. Much of Central Park's design philosophy, for instance, has been transplanted into the design of two other Frasers Property projects in Sydney, Ed. Square and Midtown MacPark, bringing inner-city edge and contemporary cool to the suburbs.

4. Recreational facilities

In many masterplanned communities, residents typically enjoy amenities to encourage an active and social lifestyle. These facilities, which in some communities may include fitness clubs, swimming pools, tennis courts, and barbecue areas, serve as central hubs for recreation.

A notable example is Club Mambourin, located within Frasers Property’s Mambourin community in Victoria. This exclusive leisure centre features a fully equipped gym, a 25-meter heated lap pool, a spa, a multi-sports court, and a café. Additionally, residents can enjoy over 28 hectares of landscaped open space, which includes dedicated parklands, playgrounds, sports ovals, and a 7-kilometre network of hiking and biking paths.

5. Sustainable

One of the main tenets of masterplanned communities is a commitment to environmental sustainability, as seen in some Frasers Property neighbourhoods. Thirteen Frasers Property communities are certified under the Green Star Communities tool, seven of which have achieved a 6-Star rating - recognised by the Green Building Council of Australia (GBCA) as representing world leadership.

What are the benefits of living in a masterplanned community?

Masterplanned communities continue to be a compelling option for Australian homebuyers. Their meticulous planning and comprehensive amenities provide a strong value proposition, making them increasingly attractive to families and young professionals. Living in a master-planned community can offer many benefits, such as:

• A strong community
  Being in a masterplanned community offers many opportunities for real connections and a sense of belonging — a welcome antidote to the growing epidemic of loneliness. In our survey of residents, people reported experiencing loneliness at only half the national average, and 85% said they knew at least one neighbour by their first name (35% knew more than 10).
• Increased safety and security
  Masterplanned communities take a proactive approach to safety, combining street lighting, ample public spaces, and sometimes even security gates. This is a significant motivator for families and individuals seeking peace of mind.
• A focus on health and wellness
  Health and wellness are at the core of many masterplanned communities in Australia, with designs that encourage walking, cycling, and other forms of active living. Another key element is providing easy access to health and wellness facilities within the neighbourhood, such as common recreational areas, playgrounds, gyms, or swimming pools, enabling residents to take care of their well-being without needing to travel far.
• Consistent quality
  Typically created by a single developer, the community’s infrastructure, landscaping, and facilities are designed and delivered to a unified, high standard. This consistency ensures that parks, pools, and other shared spaces are completed with the same level of attention to detail across the entire community.
• Potential for capital growth
  Properties in masterplanned communities are built for maximum long-term value and showcase potential for future capital growth. The planning involved in delivering high-quality infrastructure and dedicated amenities makes these properties highly desirable to future homeowners.

Things to consider before choosing a masterplanned community

While the long-term vision of a masterplanned community is a great drawcard, it is still important for you to do your research. There are several things to consider before choosing to invest beyond ensuring it matches your budget, such as:

1. Development and delivery timelines

Be prepared to live in a construction zone for some time as the community develops around you. You will need to consider the phased delivery plan that your community is proposing, as this will help you better plan for future resources and infrastructure.

2. Assessing connectivity and commute

The appeal of a masterplanned community often lies in its quiet, suburban setting, ideal for those who want a tranquil neighbourhood to return to. If you work in a major city, however, it's critical for you to consider transport links and commuting times.

3. Navigating fees and regulations

Masterplanned communities ensure long-term quality through structured management, engaging with the local council or other local operators. This means residents may be subject to the body corporate or strata fees (depending on the facilities provided in the community).

Examples of Frasers Property’s masterplanned communities

Based on industry recognition and scale, several Frasers Property’s communities stand out as leaders within the Australian market. These projects represent a broad cross-section of what a large-scale masterplanned community can offer:

1. The Ponds, New South Wales

The Ponds is a vibrant and strong community with an abundance of communal space in the shared grasslands, parks, and community areas interspersed throughout the neighbourhood. The way The Ponds is built creates strong ties amongst the density of residents, by including Schools, retail, and recreation in the framework of the neighbourhood.

2. Fairwater, New South Wales

Fairwater was the first community in NSW to achieve a 6-Star rating, demonstrating a high standard in design sustainability showcasing excellence in sustainable design. Part of Fairwater's uniqueness lies in the implementation of geothermal heating and cooling systems in more than 800 homes, which utilise the Earth's stable temperature to maintain optimal indoor conditions while reducing electricity consumption. This Geothermal technology has led to an average 21% reduction in electricity usage for Fairwater residents, while water conservation measures lessen burden on freshwater resources, and light-coloured roofs reflect solar heat decreasing overall city temperatures and combating the urban heat island effect.

3. Ed.Square, New South Wales

Located in Sydney's south-west, Ed.Square merges residential living with an associated curated retail precinct to provide a vibrant mixture of convenience and lifestyle. The design of the Precinct is an encouragement to meet and engage with each other through pedestrian-friendly spaces and the amenities it offers for contemporary urban living today.

4. Bradmill Yarraville, Victoria

Bradmill sits within Melbourne's inner west, where historical buildings and urban development coexist. It embraces contemporary urbanism and integrates retail hubs with the associated new homes that are intended to make the walkable neighbourhood an established place of shopping, living, and socialising within minutes.

5. Mambourin, Victoria

Located in Melbourne's west, Mambourin is an emerging community where retail has purposefully been blended into neighbourhoods, parks, and community facilities. It embraces an active living concept and connectivity, with landscaped walkways and open spaces that connect neighbours.

Key takeaways

Masterplanned communities offer a compelling alternative to expensive city living. These self-contained communities provide better lifestyles by providing amenities, green space, and a sense of belonging.

If you are looking to enter the housing market, either as the first home buyer or as an investor, a masterplanned community may meet your objectives. The main thing is to do your research first and seek expert advice. Knowing what is important for you and your family will allow you to make informed decisions.

Speak with our team to find out more about what a masterplanned community can do for you.