$178 Million Cairns CBD & Waterfront Developments

Within the past 7 days there have been two progressions in major development projects which have been very well received by the local tourism and construction industries.

The Cairns Regional Council has now officially approved the $155 million Entertainment Precinct development allowing for the progress of the design, lodgement of development applications and calls for expressions of interest from contractors.

Cairns Entertainment Precinct - Artist Impression

The development approval came down to the line last Wednesday at the Council’s meeting with six councillors voting for the proposal and five against, however after months of deliberations and scrutiny the development will now progress.

See Cairns Post article HERE

Another “Shot in the Arm” for the local construction industry came early this week when the contract for the $23 million Cairns foreshore redevelopment was awarded.

Artist Impression of Refurbished Wharf Shed No.2

Up to 120 workers will be employed by Hutchinson Builders to transform the heritage-listed Wharf Shed No.2 into commercial premises.

See Cairns Post article HERE

These projects will serve as a much needed double boost for Cairns and the North Queensland region, bringing major new entertainment, leisure and tourism facilities to the city and generating new employment not only throughout the construction phases yet also well into the future via ongoing hospitality and tourism service operations.

Click to enlarge

Click to enlarge

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

Herron Todd White Cairns Month in Review - Retail

In their monthly review Herron Todd White has decided to close the year with an analysis of the retail sector. Like the property market, shop owners in Cairns have experienced very difficult trading conditions for almost 3 years now with sporadic international tourism arrival numbers and low levels of expenditure throughout the region.

With the development of new international markets and a trend increase in tourists gracing our shores, we can expect 2012 to be a year of recovery for the retail sector however there still remains a good deal of ground to recover from the level of arrivals and subsequent expenditure seen in the most recent glory days for Cairns pre-GFC.

HTW Review Text:
The Cairns retail market has progressively faded since the start of 2008 as a result of the local economic downturn leading to reductions in consumer and tourism spending. Though we now perceive the Cairns retail market to be at or near the bottom of the cycle, the slow state of the economic recovery in Cairns means that the retail property market has remained flat during 2011. It must be also said that retail property sales in Cairns are extremely sporadic, with most sales involving retail property being of mixed use retail / office buildings or tenant buyouts of single premises.

Cairns Central Shopping Centre

This year saw Lend Lease become the sole owner of the Cairns Central shopping centre after paying $261 million to buy the 50% stake held by former joint owner Westfield. This sale, which took place in October, represents the first major retail property transaction of any significance in Cairns since the $29 million sale of the Raintrees shopping centre in October 2008. Two retail developments also commenced construction during the year, these being a $50 million extension to the Mt Sheridan Plaza shopping centre, and a $20 million Woolworths Masters Hardware centre in Portsmith.

We have seen an increase in vacancy levels in the retail sector resulting from a number of business closures attributed to the tough economic environment. However the increase has only been a relatively mild increment to the high levels of long term vacancies in some areas that pre-dated the downturn. High exposure CBD space remains well occupied, with vacancies most noticeable in the lesser exposure locations and/or on the CBD fringe. Rents have generally been static, showing ranges of $600 to $1,000 per sqm per annum for prime CBD space, and $1,000 to $2,500 per sqm per annum in key tourist precincts such as the Cairns Esplanade.

Read Herron Todd White's national Month In Review HERE

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

Higher Rents Loom as Construction Remains Slow

The Cairns Post reported today that rental yields could begin substantially increasing as early as January 2012 with the region facing a severe housing shortage.

As illustrated in the graphs below, new building approvals within the region have been at a virtual standstill throughout the past 12-18 months. Only approximately 35 new houses have been approved each month; well below the minimum of 50 required in order to keep up with local population growth.

As a result, the rental vacancy rate for houses has seen a sharp downward trend throughout the same period and is expected to continue doing so with no real improvement in building approvals to be seen. Watch this space!

Article text: CAIRNS landlords could reap the benefits of increased rental returns as early as January with the city facing a housing shortage. Are you looking for a rental property?

Tightening rental vacancies, a slump in building approvals and wary investors has left Cairns agents searching for rental properties, particularly houses.

While rental prices continue to stay steady, with the average three bedroom house renting from $350 a week and a two bedroom unfurnished unit starting at $180 a week, agents say the demand for houses will force rental prices up.

A recent Herron Todd White CairnsWatch report indicated vacancy rates for houses was sitting at 2 per cent, with the rate at 3.1 per cent for the same period last year.

"The housing side of things is very tight, especially for this time of year,’’ LJ Hooker Edge Hill director Ross Moller said.

"There are plenty of units but vacant houses are far and few between. We’ve got eight vacant houses and we could put someone into those houses today, but that’s all we’ve got.

"If there isn’t an increase of houses available on the market in coming weeks, especially coming into January, then the demand for houses could see rental prices for houses start to go up.

"On the other hand units might come down to encourage people to rent units.

"There’s plenty of units and there’s no shortage that’s for sure."


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