China Eastern Airlines to start direct flights to Cairns

Earlier this year I posted an article published by The Age which highlighted the expectation of local tourism business leaders toward China providing the next boost to Far North Queensland's economy. The biggest hurdle to this was cited as the introduction of direct flights from the People's Republic... Now it's official!

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THE number of Chinese tourists travelling to the Far North is expected to soar with the first direct flights from the world's most populated country starting in less than three months.

More than 36,000 Chinese travellers will be able to fly non-stop from Shanghai to Cairns each year on the China Eastern Airlines flights three times a week with services beginning in October.

The flights, which The Cairns Post revealed last week, will inject an estimated $35 million a year into the economy.

Queensland Treasurer Tim Nicholls and Tourism Minister Jann Stuckey will meet China Eastern executives in Shanghai today.

Ms Stuckey will sign a co-operative letter of intent with the carrier’s marketing officer Dong Bo.

Mr Nicholls welcomed the announcement, saying the flights would bring more than 700 Chinese visitors to Cairns each week.

"The number of Chinese visitors to Queensland increased by 16 per cent in the 12 months to March this year, injecting $403 million into the Queensland economy," he said.

"Tourism is one of the four pillars of the Queensland economy and aviation access is vital to helping us achieve our target of doubling overnight visitor expenditure to $30 billion by 2020."

Ms Stuckey said the deal was struck using the Newman Government’s $8 million Attracting Aviation Investment Fund.

"Today’s announcement is great news, not only for our north Queensland tourism operators who did it tough after cyclone Yasi, but also for the whole state," she said.

"These flights will reduce the time Chinese tourists have to spend in transit, enabling them to spend more time and money visiting the world-renowned Great Barrier Reef."

"China Eastern is one of China’s largest and most valued airlines and we welcome them to Queensland with open arms."

Mr Dong said the new route offered mainland Chinese new access to Australia.

"Cairns as a major city in north Queensland serves as a gateway to numerous tourist sites throughout the country," he said.

Cairns Airport chief executive officer Kevin Brown said the services would have an "enormous impact" on tourism.

"After several years of successfully operating Chinese New Year charter flights to Cairns from Shanghai, it’s very exciting that China Eastern is now introducing a scheduled service," he said.

"It will help strengthen Cairns’ position as the Asian gateway to Australia."

China is the region’s fastest growing source of holidaymakers, overtaking Japan in the year to March 31.

Article printed by The Cairns Post - 20th July 2012
Writer: Nick Dalton

Peter Musso licensed real estate agent at Ray White Cairns Beaches selling property in Cairns' beautiful northern beach suburbs including Trinity Beach, Kewarra Beach, Clifton Beach, Palm Cove, Trinity Park, Smithfield, Yorkeys Knob, Holloways Beach, Machans Beach, Caravonica and surrounds.

Cairns Post: Bungalow Tops List for Rental Returns

BUNGALOW has topped the list for the highest rental yields for units in the Far North.

According to RP Data figures, released this month, Bungalow in Cairns, recorded a 7.7 per cent gross rental yield in the past year.

Properties at Manoora and Cooktown outperformed the rest in the housing market revealing an average rental yield of 6.2 per cent.

LJ Hooker Edge Hill property manager Amanda Boccalatte said she was initially surprised Bungalow recorded the highest return but narrowed it down to the large number of units in the suburb.

"Sale prices are low but the rents haven't dropped," she said.

"You could buy a unit (at Bungalow) in 1998 for low to mid-$200,000s and you would be getting $220-$240 in rent (weekly)."

Ms Boccalatte said unit sale prices were now $50,000 to $100,000 less but rents were still the same.

With two-bedroom units in demand, Ms Boccalatte believed it was a good time for investors to enter the market.
"It's a great time to invest, prices are low and you are getting a great return," she said.

"Body corporate fees are high but really when you look at the rental return (7.7 per cent), you wouldn't have seen that for the last 10 years."

But Kylie Fullerton, of Taylor Jones Property, said it may not be the best time to rush out to buy a property based on positive rental yields.

While the rental market appeared to be tightening, she was wary to generalise because of a lack of consistency around statistics.

"The rental pool is shrinking," she said.

Ms Fullerton said while interest rates and property prices remained low, investors needed to factor in high insurance premiums and body corporate fees.

"There is a demand for four-bedroom houses with two bathrooms (and) we are finding people are wanting relatively new houses," she said.

Indicative gross rental yields are based on the average annual rent divided by the median sale price in each suburb in the past year.

THE TOP 10 RENTAL YIELDS

UNITS
Bungalow - 7.7 per cent
Woree - 7.2 per cent
Parramatta Park - 7.2 per cent
Port Douglas - 7.1 per cent
Edge Hill - 6.9 per cent
Yorkeys Knob - 6.6 per cent
Holloways Beach - 6.6 per cent
Mooroobool - 6.5 per cent
Westcourt - 6.5 per cent
Manoora - 6.4 per cent

HOUSES
Manoora - 6.2 per cent
Cooktown - 6.2 per cent
Caravonica - 6.1 per cent
Manunda - 5.9 per cent
East Innisfail - 5.9 per cent
Babinda - 5.8 per cent
Bungalow - 5.8 per cent
Cardwell - 5.7 per cent
Craiglie - 5.7 per cent
Westcourt - 5.6 per cent

Article printed by The Cairns Post - 24th July 2012
Writer: Bianca Keegan

Peter Musso licensed real estate agent at Ray White Cairns Beaches selling property in Cairns' beautiful northern beach suburbs including Trinity Beach, Kewarra Beach, Clifton Beach, Palm Cove, Trinity Park, Smithfield, Yorkeys Knob, Holloways Beach, Machans Beach, Caravonica and surrounds.

Cairns Post - Rental Squeeze Hits the Pocket

SECURING a rental property in Cairns is becoming even more competitive, the latest real estate industry figures say.

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The Real Estate Institute of Queensland released the June quarter residential rental vacancy yesterday showing Cairns rentals are still in high demand.

The vacancy rate is 1.9 percent, dropping from 2.5 percent in the March quarter, the report found.

REIQ chief executive Anton Kardash said property managers were reporting tighter rental conditions because of low investor activity.

He said rental stock was also depleted because of investors selling their properties and landlords choosing to live in their own investment properties.

"The first three months of the year are generally the busiest in the Queensland rental cycle so we see vacancy rates particularly low during this period of time," he said.

Local real estate agent Debbie Aldred said rental prices would continue to rise because of increased demand.

"The unit vacancy rate is dropping quite rapidly," she said.

"The problem is there has been no building in the last five years and there are still plenty of people coming into town."

"It's quite a problem, we desperately need more houses to rent," she said.

Ms Aldred said rental arrears has also increased with some tenants unable to afford the increases.

Article printed by The Cairns Post - 21st July 2012
Writer: Bianca Keegan

Peter Musso licensed real estate agent at Ray White Cairns Beaches selling property in Cairns' beautiful northern beach suburbs including Trinity Beach, Kewarra Beach, Clifton Beach, Palm Cove, Trinity Park, Smithfield, Yorkeys Knob, Holloways Beach, Machans Beach, Caravonica and surrounds.

Building Approvals Continue to Rise

The Cairns Post - 'Signs our recovery on target'
CAIRNS building approvals have taken another giant leap this month, but a local industry figure warned it was not quite time to pop the champagne cork.

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Figures released yesterday showed the number of residential building approvals in the Far North had sky-rocketed almost 75 percent in the past month, the third highest figure around the state.

But Dixon Homes managing director Andrew Thomas said the results were more indicative of the market three months ago, not the present climate.

"I was excited three months ago, I'm not so excited now," he said.

"(But) I'm optimistic. With the low vacancy rates, overall the economy seems to be growing, there are reasonable tourism levels and there's been a change of government - people have a lot more confidence in the new government."

However, Master Builders regional manager Ron Bannah said he hoped the figures were a sign of the continuing recovery of the industry in the Far North.

"I think it's fair to say there's more and more confidence coming back," he said.

"I think we're starting to get some confidence in the banks."

"The banks have taken a flogging in the past 12 months, they've made it very difficult for people to borrow money.

They've come under a fair bit of criticism... but they've started to bend a little now."

Article printed by The Cairns Post - 12th July 2012
Writer: Grace Uhr

Peter Musso licensed real estate agent at Ray White Cairns Beaches selling property in Cairns' beautiful northern beach suburbs including Trinity Beach, Kewarra Beach, Clifton Beach, Palm Cove, Trinity Park, Smithfield, Yorkeys Knob, Holloways Beach, Machans Beach, Caravonica and surrounds.

Cairns Post - 'North fights for a fair go'

STRATA title insurance holders have stepped up their campaign against premiums in the residential market, highlighting insurance price hikes by companies across the board.

Property Ladder Realty director Linda Tuck claims insurance companies are now setting their sights on non-strata owners.

On the Beach Holiday Apartments - Trinity Beach

Mrs Tuck gave one example of a Cairns landlord who was forced to pay an extra $1150 to insure three units after the cost skyrocketed from $ 450 in 2011 to $1600 in 2012.

“Duplex insurance has doubled, house insurance has gone up, contents insurance has gone up, every bit of insurance everywhere in north Queensland has gone up,” she said.

“I think the only solution is a government insurance office, whether it be federal or state.

“It’s not just affecting Cairns, it’s affecting everywhere north of Rockhampton.” Federal member for Leichhardt Warren Entsch echoed Mrs Tuck’s concerns and said he would introduce a private member’s Bill into parliament demanding that companies that cannot offer affordable insurance in the Far North be banned from insuring anywhere else in Australia.

“The insurance market in northern Australia has failed absolutely, it’s gone way beyond strata title insurance,” Mr Entsch said.

“It is an absolute disgrace at the moment and insurers are doing nothing whatsoever to make it any easier.” Mr Entsch said while some aspects of commercial insurance were not “too grossly affected” by the price hikes, residential, B&B, landlord and rural insurance were not so lucky.

“I’m now getting examples where people can’t even get any strata insurance when, by law, they’re required to have it,” he said.

Mr Entsch dismissed excuses given by insurance providers that the Far North was a risky area to invest in given its recent history of natural disasters.

“We’ve had two events in bloody six years, it’s all bull, quite frankly,” he said.

“They’re still making record profits and in my view, they’re cherry picking.”

It is understood CGU subsidiary Strata Unit Underwriters is the only major strata title insurance provider left in the Far North.

Mrs Tuck said she held “no confidence” in a recent Federal Government inquiry into strata title insurance premiums, labelling the recommendations put forward, including the removal of stamp duty, as “nothing of any real significance”.

Article printed in The Cairns Post - 13th July 2012

Writer: Michael Serenc

Peter Musso licensed real estate agent at Ray White Cairns Beaches selling property in Cairns' beautiful northern beach suburbs including Trinity Beach, Kewarra Beach, Clifton Beach, Palm Cove, Trinity Park, Smithfield, Yorkeys Knob, Holloways Beach, Machans Beach, Caravonica and surrounds.

Cairns Real Estate Market 'Month in Review'

Herron Todd White provide their monthly review of the Cairns marketplace:

The conventional wisdom is that being a transient city, Cairns has a high proportion of renters in its population, with the counterpart that it has a lower than average incidence of owner-occupiers in its property base compared to other Australian cities. Nevertheless with the slow state of the present market, in particular the investor market, it seems to be intending owner-occupiers that are sustaining the majority of current property market activity.

Owner-occupiers appear to buy across the entire spectrum of property types, whether that be houses, apartments or acreage properties. While represented across the entire spectrum of locations, owner-occupiers appear to show a higher degree of concentration either in the older established suburbs or in areas such as Redlynch.

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"we are seeing some former rental properties being snapped up for owner occupation while the price is right... This is further reducing the supply of rental properties in an already tight rental market..."

With Cairns being a buyers market, we are seeing some former rental properties being snapped up for owner occupation while the price is right. This is further reducing the supply of rental properties in an already tight rental market, and may have the spiralling effect of inducing even more people to buy rather than rent due to the looming rental shortage. However there is also a degree of buyer hesitancy in the apartment market due to the hike in ownership costs arising from higher strata building insurance / body corporate charges.

Source: Herron Todd White 'The Month in Review' June 2012

Peter Musso licensed real estate agent at Ray White Cairns Beaches selling property in Cairns' beautiful northern beach suburbs including Trinity Beach, Kewarra Beach, Clifton Beach, Palm Cove, Trinity Park, Smithfield, Yorkeys Knob, Holloways Beach, Machans Beach, Caravonica and surrounds.