OUR BEST UNEMPLOYMENT FIGURES IN 13 MONTHS

Over the past 13 months the region's unemployment rate has more than halved! This is a remarkable turnaround from 2009 when a record 13.8 percent of the Far North's workforce was unemployed.

The October unemployment figures show the number of people out of work in the Far North dropped to 6.9 percent, down 0.8 per cent on the previous month. About 3500 people found work in October, largely driven by surges in tourism numbers and a slight recovery in the construction sector.

Advance Cairns chairman Russell Beer said it was the first time he had full confidence in the official figures after watching the rate see-sawing from 12.4 per cent in January, down to 8.9 per cent in May and then back up to 10.3 per cent in July.

"7.9 per cent is great, that’s pleasing, I wasn’t expecting it below 8 per cent," Mr Beer said.

"I think we are seeing the economy picking up."

"We've (Macdonnells Law) have had a lot of business in the past three months, particularly people from out of town investing in property again." Read full article


The region's current trend unemployment rate of 9.1% is still much higher than the State's trend average of 5.4 percent, however the economic fundamentals in Cairns are continuing to gradually improve.

With the economy remaining on track for continued slow recovery over the coming months we are seeing new buyers entering the property markets and the overall industry remains confident in sustained future growth.

Peter Musso - Ray White Cairns Beaches - Property agent selling real estate in Trinity Beach, Kewarra Beach, Clifton Beach, Palm Cove, Trinity Park, Smithfield, Yorkeys Knob, Holloways Beach, Machans Beach

VICTORIAN INVESTORS ASSURED

Victorian-based investors in North Queensland property have been reassured that the residential real estate market in the Cairns region “will come back”.

Ray White Cairns Beaches Director Paul Stirling has held seminars in Melbourne this week with existing property owner clients to update them on the current state of the market.

Mr Stirling said Victorian investors were crucial to the long term future of residential property in North Queensland as they made up approximately 30 per cent of the investor market.

“Our meetings here in Melbourne with North Queensland property investors have been well received,” he said. “We have held three presentations with mostly existing investors. We provided them with facts and figures on where the market was from 1990, its growth patterns since then, where it is now on the ‘Property Clock’ and what the current economic indicators are pointing to in the near future.

“Many of these people are long term investors who have owned property in the Cairns region for between three and 10 years. They appreciated that we made a 4,000km journey to meet them face to face and bring them up to speed. Favourable comments were received regarding the content and factual nature of the seminar information – in particular the figures on vacancy factors in a rental market that is beginning to tighten from a balanced status."

“Our advice is that we feel the market has bottomed and there is growing confidence that the market will come back. “We’ve just given them the clear cut information to make a decision they’re comfortable with. If you don’t have to sell then don’t sell, unless you can use the yield for better purposes or investment elsewhere.”


Mr Stirling said he and the office’s business development manager Rachel Blok were breaking new ground by meeting with more than 60 investors during their Melbourne visit. “We held investor seminars last year in Perth and early next year we will be holding them in Sydney,” he said."

“It’s a good opportunity to provide an update on the residential market and information from a property management perspective to our long term investment property owners. But we also take the opportunity to meet potential new clients and we host a small function where owners can meet in a relaxed atmosphere.”

www.raywhitecairnsbeaches.com.au

Peter Musso - Ray White Cairns Beaches - Property agent selling real estate in Trinity Beach, Kewarra Beach, Clifton Beach, Palm Cove, Trinity Park, Smithfield, Yorkeys Knob, Holloways Beach, Machans Beach

CAIRNS' SELLERS INFORMATION EVENING AT RAY WHITE CAIRNS BEACHES

This coming Tuesday Ray White Cairns Beaches will be hosting an information evening for owners and anyone who might be interested in learning more about the current status of local property markets.

Economic information will be discussed and intimate advice provided to those who might have any questions or queries regarding selling or buying in the current market.

Whether you're on the market and not sold, going onto the market with many questions, or seeking direction of any kind at all the team at Ray White Cairns Beaches would love to have you along!

When: Tuesday 26th October @ 6:00pm
Where: Ray White Cairns Beaches, Trinity Beach Rd, Trinity Beach
R.S.V.P: Phone 07 4057 9111 or email peter.musso@raywhite.com

www.raywhitecairnsbeaches.com.au

Peter Musso - Ray White Cairns Beaches - Property agent selling real estate in Trinity Beach, Kewarra Beach, Clifton Beach, Palm Cove, Trinity Park, Smithfield, Yorkeys Knob, Holloways Beach, Machans Beach

STRONG AUSSIE DOLLAR TO SLOW ECONOMIC RECOVERY IN TROPICAL NORTH QUEENSLAND

With the Australian dollar recently reaching a 27-year high, not seen since the currency was freely floated in 1983, heavy costs are expected for local tourism and export industries.

Cairns was hit hard by the global financial crisis due to its high reliance on international tourism, and local businesses are still struggling to recover. Early indications of a strengthening economy in the north have just started to show yet these are now overshadowed by the sky-rocketing dollar bound to deter international expenditure in the region.

Interest rate rises are being viewed as too much too soon while local property markets are still finding their feet, and of longer term concern is the slowdown in residential development. It is the hope of local business leaders that the reserve bank decides to leave interest rates at current levels or lower for the time being with political figures calling for it to be allowed to free-fall like in the time of the Keating Government after the early 1990’s recession (Courier Mail Article).

Australian Tourism Export Council director Ron Livingston said Cairns had suffered because its tourism industry was predominantly based on leisure tourism, rather than business tourism. "If you add the fact that Australia has a high wage base compared to, say, Southeast Asia, we get crucified on hotel costs and tour costs," Mr Livingston said (The Australian Article).

Peter Musso - Ray White Cairns Beaches - Property agent selling real estate in Trinity Beach, Kewarra Beach, Clifton Beach, Palm Cove, Trinity Park, Smithfield, Yorkeys Knob, Holloways Beach, Machans Beach

RAY WHITE CAIRNS BEACHES VISITING MELBOURNE

Business Principal Paul Stirling and representatives from the Property Management Division will be visiting Melbourne in the second week of November, where the entourage will be meeting with many existing investment property owners.

This is the second time such an exercise as occurred - The first was last year when the destination was Perth. A seminar on the state of the Cairns real estate market and economy was delivered; A small social function to meet and greet many owners in a relaxed atmosphere and other "one on one" appointments where held - A similar agenda is planned for existing and potential Victoria based clients.

Details of the venue, seminar date and time will be finalised next week with all information being emailed to interested parties. For seating and catering purposes we would appreciate at this early instance if you have interest in attending this event.

For more information contact Ray White Cairns Beaches on 07 4057 9111 or email cairnsbeaches.qld@raywhite.com

www.raywhitecairnsbeaches.com.au
Peter Musso - Ray White Cairns Beaches - Property agent selling real estate in Trinity Beach, Kewarra Beach, Clifton Beach, Palm Cove, Trinity Park, Smithfield, Yorkeys Knob, Holloways Beach, Machans Beach

CHINA: CAIRNS’ FASTEST GROWING MARKET

China has now become the Tropical Norths’ fourth largest source for international visitors and is now the fastest growing segment with an average annual growth of 62%.

Tourism Tropical North Queensland chief executive officer Rob Giason said the growth in visitors from the region of China is "very encouraging". The Chinese market shows interest in nature tourism and as such Cairns is seen as one of the most attractive destinations within Australia.

Read full article from the Cairns Post

Cairns international airport passenger numbers are currently rising strongly as a result of the extra flights which commenced in March/April 2010, and have regained more than half the drop that occurred at the end of 2008. This is an excellent result for the region which has experienced slow economic recovery since the beginning of the GFC due to its high dependence on tourism conditions.

Cairns median house prices have always shown distinct cycles relative to international and domestic tourism conditions. Setbacks for the industry have included the threat of cyclones, and more notably, the Pilot’s Strike in 1989 during which median property values within the region saw a sharp decline of almost 20%.

The Global Financial Crisis coupled with the Bird and Swine Flu epidemics during 2008 were the cause for the most recent downturn in tourism arrivals, however the evidence is now showing that stronger tourist numbers this season are generating a significant improvement in industry conditions compared to last year.

With an increase in international arrivals and tourist expenditure within the region, real estate markets in Cairns can hope for improved housing affordability and foreign investment in turn placing upward pressure on median values once again.

Peter Musso - Ray White Cairns Beaches - Property agent selling real estate in Trinity Beach, Kewarra Beach, Clifton Beach, Palm Cove, Trinity Park, Smithfield, Yorkeys Knob, Holloways Beach, Machans Beach

Images of $446 Million Upgrade to Cairns Hospital Revealed

Images of the $446 million dollar redevelopment scheduled for completion in 2014 were released recently.

For doctors and patients at Cairns Base Hospital, the exclusively modern facility can't come soon enough. Although the real estate market in Cairns will not be directly affected by a hospital upgrade, this in addition to any other government funded projects in the region will assist in making the region more appealing to those looking to relocate to Cairns and surrounds.

Read full article

Peter Musso - Ray White Cairns Beaches - Property agent selling real estate in Trinity Beach, Kewarra Beach, Clifton Beach, Palm Cove, Trinity Park, Smithfield, Yorkeys Knob, Holloways Beach, Machans Beach

JCU's Bid to Triple Student Numbers

James Cook University has revealed plans to triple the size of its Cairns campus to 10,000 students in 15 years after record high enrolments.

Business leaders have welcomed the goal and said the university will be a major driver for the region’s economy and will help retain and attract professionals. The University’s value to the Cairns economy is already $86 million.

About $100 million worth of investment was on the way or soon to start, with designs for the $25 million signature Cairns Institute building to be shortlisted soon.
Cairns Chamber of Commerce president Jeremy Blockey said the university had come “an awful long way” and further expansion would fuel jobs such as in construction for accommodation.

Read latest news articles

Peter Musso - Ray White Cairns Beaches - Property agent selling real estate in Trinity Beach, Kewarra Beach, Clifton Beach, Palm Cove, Trinity Park, Smithfield, Yorkeys Knob, Holloways Beach, Machans Beach

Jetstar Invests a Further $100m in Region

Low-cost carrier Jetstar has backed its confidence in Cairns by investing another $100 million in the destination with an extra 25 new weekly domestic flights, an extra 460,200 seats a year to Cairns.

With the reinstatement of services to western Japan, future direct flights to Auckland next year and more weekly services to Perth, Adelaide, Melbourne and Sydney earlier this year the airline has also revealed that it will be targeting flights to China.

They also come as Singapore Airlines subsidiary Tiger Airways starts daily late night flights between Cairns and Melbourne next month, Cathay Pacific adding daily flights to Hong Kong and QantasLink starting direct flights to Port Moresby.

The Cairns Post - 26th August 2010

View full article

Peter Musso - Ray White Cairns Beaches - Property agent selling real estate in Trinity Beach, Kewarra Beach, Clifton Beach, Palm Cove, Trinity Park, Smithfield, Yorkeys Knob, Holloways Beach, Machans Beach

Far North Employment Reaches All-Time High

The Far North is certainly on the path to economic recovery, with new statistics showing strong monthly average increases in the number of people employed in the region.

An analysis by property advisers Herron Todd White has shown the number of people employed from Cardwell to the Torres Strait stands at 134,900.

That is 700 more jobs than the previous peak level, achieved in September 2008, before the global financial crisis struck.

The average number of job ads in The Weekend Post is also on the rise, with an increase of 19 per cent over the past 12 months.

Read full article

Peter Musso - Ray White Cairns Beaches - Property agent selling real estate in Trinity Beach, Kewarra Beach, Clifton Beach, Palm Cove, Trinity Park, Smithfield, Yorkeys Knob, Holloways Beach, Machans Beach

$240m Cairns Cultural Precinct Approved

The Queensland State Government has given it's go-ahead for the construction of Cairns' world-class cultural precinct centre.

The project, described by one MP as the Darling Harbour of Cairns, will help re-ignite the local economy, boosting the ailing construction industry by employing up to 1000 people during the construction phase.
It will help establish Cairns as the cultural capital of North Queensland, opening up new markets in festivals, cultural exhibitions and conventions and providing world-class bases for existing and new arts communities.

Read full article

Peter Musso - Ray White Cairns Beaches - Property agent selling real estate in Trinity Beach, Kewarra Beach, Clifton Beach, Palm Cove, Trinity Park, Smithfield, Yorkeys Knob, Holloways Beach, Machans Beach

Investor Optimism Growing

An increase in university enrolments and speculation over Cairns' role in the Papua New Guinean gas project is fuelling new optimism in the housing market.

While the Real Estate Institute of Queensland's March 2010 quarter report showed the median house price in Cairns fell by 0.7 per cent to $370,000, there was cause for optimism, REIQ Cairns chairman Rick Szelpuk said.

"A lot of people will move to Cairns looking to rent property initially. Also, with the Australian dollar getting more realistic, it allows opportunity for tourists to visit and Cairns can benefit from this."

Mr Szelpuk said the 30 per cent increase in mid-year enrolments at James Cook University was another positive sign. He said it was a good time for investors to buy property to rent out to university students.

Read full article

Peter Musso - Ray White Cairns Beaches - Property agent selling real estate in Trinity Beach, Kewarra Beach, Clifton Beach, Palm Cove, Trinity Park, Smithfield, Yorkeys Knob, Holloways Beach, Machans Beach

Employment Rate Improving

Recently released ABS figures showed that the Far Northern unemployment rate fell to 10.4 per cent in April; down from 12.4 per cent in March.

The national unemployment rate also dropped to 5.5 per cent from 5.7 per cent throughout the same period.

Far Northern employment coordinator Peter Doutre attributed the Cairns region’s drop in unemployment to factors including new flights to the city which started last month.

“I’m optimistic it’s the start of the trend that could spell improving times for our Cairns economy,” Mr Doutre said.

Read full article
Peter Musso - Ray White Cairns Beaches - Property agent selling real estate in Trinity Beach, Kewarra Beach, Clifton Beach, Palm Cove, Trinity Park, Smithfield, Yorkeys Knob, Holloways Beach, Machans Beach

Steady Activity Expected in Local Property Markets

New figures released from Herron Todd White indicate that rents are likely to remain stable throughout the remainder of 2010.

Cairns overall rental vacancy rate now stands at 4.6%; about double that of a two years ago before the global financial crisis.

Also in HTW's CairnsWatch report, residential property sales were reported to have slowed as the last of the effects of government first home buyer grants wore off.

"While there is a lot more confidence in the market than what there was 18 months ago, the difference is that interest rates are now in a rising cycle,’’ he said.

"For this reason we expect the Cairns real estate market to only build slowly in activity during 2010.’’

Read full article

$35m Smithfield Water Park to Go Ahead

An agreement between proposed 'Adventure Waters' water theme park and Mulgrave Central Mill was reached yesterday which will see construction of the $35 million dollar development begin in July.

Mulgrave Central Mill's appeal against the development with concerns for traffic and flooding was all that stood in front of construction beginning this year.

The development will employ over 300 people in the construction phase, and another 200 in it's general operations.

Cairns Deputy Mayor Margaret Cochrane, whose division includes the water park site, said it was "fabulous news".

Read full article

Cairns Linked to Fast-Growing Taiwanese Tourism

Jetstar has announced it will operate a daily flight from Taipei to Osaka with connections to Cairns.

Airline communications head Simon Westaway said the connections had “great potential” for the Far North’s tourism industry. He said it would also make it easier for visitors from China to get to Cairns.

Taiwan is Australia’s 14th largest inbound market which grew 18 per cent last year, the second fastest among the top 20 inbound markets, with just under 100,000 visitors.

Read full article

New Daily Flights Between Cairns and Melbourne

Budget airline Tiger Airways will soon operate daily late-night/early-morning services between Melbourne and Cairns from $98 one way.

Proposed to commence in mid-September 2010, the airline has the capacity to bring more than 2,500 people to Cairns weekly.

Tiger Airways Australia commercial director Steve Burns said the decision was based on demand.

Read full article

Local Tradesman Shortage Expected to Slow Growth

Cairns is unlikely to experience a residential construction boom, as occurred before the global financial crisis, due to lack in skilled local tradesmen.

The Urban Development Institute of Australia's president Adam Gowlett, who was re-elected for another 12-month term last Wednesday, said "ideally a home building resurgence would be gradual rather than fast."

Mr Gowlett said the outlook for residential construction for the remainder of 2010 was still quiet, despite promising signs in other areas of the economy.

Read full article

Claims of Australia's 'Housing Bubble' Rejected

RP Data's national research director Tim Lawless has rejected claims that the nation is experiencing a 'bubble' in property values.

“Across Australia’s capital cities, home values have increased by just 6.2 percent per annum over the last five years – a rate of growth that is in line with wages growth which has been 6.0 per cent per annum over the same time frame," Mr Lawless said.

“Rather than experience a rapid decline, my view is that home values will continue to show modest growth due to the ongoing under supply of dwellings and rapid population growth that creates demand for housing.”

Read full article

Major Town Centre at Cairns Beaches to Go Ahead

The State Government has approved plans to develop a new town centre at Smithfield, central to the northern beaches of Cairns.

The $500 million dollar plan will ultimately create 2,500 jobs with further jobs created from flow-on effects and provide a timely economic boost to the region.

Developer Steve Pellegrino said that the decision would be a catalyst for further growth along the northern beaches, including expansion of the James Cook University campus and major road and infrastructure upgrades.

Read full article

Cairns Looking to be Main Base for Mine Workers

Planning has begun to help Cairns overtake Townsville as the second biggest fly-in, fly-out base for Australia's mining industry.

Local industry leaders met this week and identified up to 80 long to medium-term resource projects that could be supported from Cairns, which provided a beautiful environment and lifestyle for FIFO workers and their families.

Queensland Resources Council deputy chief executive Greg Lane said Cairns was in an ideal position to take advantage of expanding its FIFO base with billions of dollars of mining projects coming on line soon.

Read full article

New Flights Bring "Quiet Confidence" Back to Local Tourism

Experts estimate that the new international flights coming to Cairns from next week have the potential to generate approximately $100 million per year in visitor expenditure.

Cairns Airport chief executive officer Stephen Gregg said "The reinstatement of services between Cairns and Osaka means our region once again has access to the important western Japan tourism market."

Tourism Tropical North Queensland chief executive office Rob Gaison said there was quiet confidence within the industry the flights would allow operators to claw back the 106,000 overseas visitors lost in 2009 and the $194 million they would have spent.

Full article: www.smartlinecairns.com/newsletterupload/100313flights.pdf

Coastal Properties Expected to Perform in 2010

Cameron Kusher, senior research analyst with rpdata.com, asserts that although fewer 'sea changers' and retirees caused coastal markets to under-perform throughout 2009, rpdata.com expects that these coastal markets will notch up strong performance in 2010.

"Many factors are contributing to a more confident market including lower unemployment rate, strong consumer and business confidence and still lower-than-average interest rates.”

"The renewed confidence should see demand pick up in lifestyle regions and as a result prices should begin to strengthen.”

Full article: http://www.nmddata.com.au/newsletter/2010-03/03.html