The Cairns Post - "North a National Hotspot"

The Far North has become one of Australia's buyers' market hotspots, with potential home-owners having the upper hand when buying property.

According to the latest Commonwealth Bank/RP Data Home Buyers Index (click here to view RP Data's latest press release), the region has been listed in the top five buyers' markets in Australia.

The report revealed that regions where sellers held the least leverage and buyers were empowered tended to be primarily coastal or lifestyle markets, where housing conditions have been relatively weak.

Herron Todd White Cairns director Rick Carr said buyer activity in the region had fallen away since the onset of the global financial crisis.

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"We still maintain Cairns is a buyers' market," he said.

"There are more properties on the market than there is demand. The market power is with the buyer."

The economic researcher said prices had declined over the past couple of years, but the cost of finance and affordability were finally lining up.

"The market is at or close to the bottom of the price cycle but that's a forecast, not a guarantee.

"The cost of finance is much better and there is better affordability, the economy is starting to pick up."

Ray White Cairns Central sales agent Therese Plath believes buyers are aware they have the advantage.

"I do believe the buyers are active out there, and certainly in the valid price range.

"We did a contract (on Wednesday) for a couple (buying) in the lower $300,000s range. Because the interest rates are attractive at the moment and the prices are attractive - it's never been a better time for them."

RP Data's senior research analyst Cameron Kusher said plenty of stock and a low number of buyers mean it is an ideal time for property hunters to hone their negotiation skills.

"In recent months there's been a bit of an uptick in people actively looking, but on a historical basis the amount of stock for sale is quite high," he said.

“While those conditions persist, you're typically going to have a market where buyers are better positioned to negotiate than sellers.”

Conditions are currently tipped in favour of buyers in all states and territories except the ACT, although there are still significant differences between states and cities.

Queensland and Tasmania show extreme buyers' market conditions, while parts of southwestern and inner Sydney are more evenly balanced.

Mr Kusher said low growth in house prices over the last decade meant many potential buyers had opted to boost their savings or pay down debt rather than upsize their homes.

“Any little growth (in house prices) is not going to bother people, because they're just saving for a bigger deposit.

“People are realising they have probably leveraged up on debt a little bit too much in the last decade, and they're now trying to get themselves into more comfortable positions.”

The top five buyers' markets are Southern (TAS), Lower great southern (WA), West Moreton (QLD), Wide Bay Burnett (QLD) and Far North (QLD).

Article printed by The Cairns Post Property Guide- 26th January 2013

Peter Musso licensed real estate agent at Ray White Smithfield 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, Kamerunga and surrounds.

Palm Cove Resort Joins Exclusive Brand

PALM Cove will be the first, and possibly the only, Queensland location of the Accor hotel group’s upmarket and exclusive MGallery brand.

The Reef House and Spa Palm Cove

The Reef House Resort and Spa will be rebranded next month.

It was previous managed by or branded Rydges and Sebel.

There are only five other MGallery hotels in Australia, and fewer than 60 globally.

After undergoing a refurbishment, believed to cost about $2.7 million, the hotel will join Accor’s MGallery Collection on February 22.

Built as a family home in 1958, the 69-room resort is on the beachfront overlooking the Coral Sea.

The resort is owned by hoteliers David Horbelt and Malcolm Bean, who have other interests in Adelaide and Melbourne. They bought the property in February 2011.

Accor Pacific chief operating officer Simon McGrath said the Palm Cove hotel was joining a boutique network of “unique personalities, premier locations and highly distinctive architecture, interior design and services”.

He said Accor now had three luxury resorts in Palm Cove and more than 10 hotels in the region.

“Reef House Resort and Spa has long been one of the stand-out properties in north Queensland,” Mr McGrath said.

“It has such a great history and we’re thrilled to be taking on the management rights.

“The MGallery Collection, which is all about boutique high-end hotels with unique stories, resonates particularly well with Reef House Resort and Spa and we are excited to see the hotel flourish under its new, internationally recognised name.”

Brett Skinner, who has worked for Accor for nine years, has been appointed general manager.

The property has three swimming pools and 300-year-old melaleuca trees.

Rooms have king-size beds with light muslin netting, private balconies or patios, a kitchenette, individually controlled air-conditioning, rain showers, a swinging “love seat” and free Wi-Fi.

Mr McGrath said the resort was a world-renowned network of hotels, including The Como Melbourne, the Grand Hotel Melbourne, Hotel Lindrum (Melbourne), Harbour Rocks Hotel in Sydney and the Fairmont Resort in the Blue Mountains as well as the St Moritz in Queenstown, the Baltimore in Paris, St-Ermin’s in London, The Convient Hotel Amsterdam and Vie Hotel Bangkok.

Article printed in The Cairns Post – 26^th January 2013

Peter Musso licensed real estate agent at Ray White Smithfield 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, Kamerunga and surrounds.

Chinese Businessman Buys Double Island Resort

Two recent large-scale commercial purchases are the talk of local business in Cairns at present; the first was mining magnate Clive Palmer's purchase of the Sea Temple Golf and Country Club at Port Douglas, and the second purchase by Chinese businessman Benny Wu based in Hong Kong of the Double Island Resort in Palm Cove. With commercial property values so affordable and light on the horizon for the local tourism industry these are likely to be the first of many large-scale acquisitions to come. Article text follows:

Double Island, Palm Cove

HONG Kong-based multi-millionaire Chinese businessman Benny Wu has bought luxurious Double Island resort near Cairns.

The former mining magnate told The Cairns Post he planned to spend $10 million developing and upgrading the resort to host wealthy Chinese holidaymakers and businessmen.

The deal with current owner, Sydney developer Sean Howard, was signed last night and witnessed by Cairns Mayor Bob Manning at the Kewarra Beach Resort, also owned by Mr Howard.

The price was not disclosed but the island was on the market for $8 million. Mr Howard paid $4.5 million for the island in 2000.

The purchase comes just a day after The Cairns Post revealed billionaire miner Clive Palmer had bought the Sea Temple Golf and Country Club at Port Douglas for about $7 million.

Double Island has a mix of accommodation, including Polynesian-style villas, luxury apartments and eco-tents all set amongst landscaped tropical gardens. The resort includes a beachside gymnasium, reportedly built for Keanu Reeves when the actor leased the island while filming The Matrix Reloaded.

Mr Wu said he "liked the island" and decided to buy it over lunch with Mr Howard about a year ago.

He intends to target "the very top end of the market" and fly in "very rich" holidaymakers and businessmen from Hong Kong, Shanghai, Beijing, Guangzhou and other emerging cities in China using the direct Shanghai service by China Eastern, proposed direct Guangzhou flights by China Southern and Cathy Pacific's Hong Kong service.

Mr Wu said he wanted to create an exclusive "private club" and encourage corporations to hold meetings on the island.

Article printed by The Cairns Post - 8th November 2012
Writer: Nick Dalton

Peter Musso licensed real estate agent at Ray White Smithfield 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, Kamerunga and surrounds.

Clive Palmer Buys Port Douglas Resort & Golf Course

BILLIONAIRE miner Clive Palmer has bought the Sea Temple Golf and Country Club at Port Douglas for about $7 million.

Clive Palmer - Australian Mining Magnate

He told The Cairns Post he made the "unconditional" deal last Friday after making an aerial inspection by helicopter on Thursday.

It is his first investment in the Far North and at Port Douglas.

Sea Temple golf was owned by the Juniper Group and has been on the market for a year. Mr Palmer said at this stage he was unlikely to buy any more properties in the Far North.

The deal includes the award-winning 18-hole golf course, of 6125m, par 71 and designed by Thomson, Wolveridge and Perret, a housing estate development with 45 premium home sites fronting the golf course, averaging 820sq m and existing development approval for an additional 10 fairway lots, averaging 1333sqm.

Aerial view of Port Douglas

"I like golf courses but I am not a very good golfer," Mr Palmer said.

He said he had no immediate plans for the golf course and the surrounding residential land.

"I haven't decided but I am happy for it to continue as a golf course."

Mr Palmer said he had personally bought the course, not his company which owns three other courses on the Sunshine and Gold coasts Port Douglas Chamber of Commerce president Phoebe Kitto said it was the best news for the seaside resort town.

"It's the sign of greater things to come," she said.

"It comes after a good season and the eclipse is looking good. There's a real good positive feel and businesses are feverishly working together."

Ms Kitto said it was now up to the Cairns Regional Council to back up private investment in town with the Port Douglas waterfront plan as soon as possible.

CBRE Hotels Queensland director Wayne Bunz, who negotiated the deal, said the contract was unconditional with settlement in 30 days.

He said it was an "astute investment" by Mr Palmer.

"Clive Palmer does not overpay for anything. He has seen the incredible value in the future," Mr Bunz said.
"It's proved to be a very smart investment," he said.

"He's paid substantially below replacement value. Clive Palmer has always had a good eye for good assets," he said.

Mr Bunz said golf courses usually cost $1 million a hole plus the cost of land.

"This is a huge boost for Port Douglas," he said.

Mr Bunz said Mr Palmer had recognised the value of tourism properties in north Queensland which boded well for the region's future.

"In the next 12 to 18 months I see an increase in transactions in north Queensland," he said.
Mr Bunz said he believed the region's economy had reached the bottom.

Tourism pioneer John Morris, who developed the course in the late 1990s, said he was "delighted" that Mr Palmer was the new owner.

"It is a great result and as I understand he has no plans to develop the golf range," he said.
Mr Morris said Mr Palmer was buying a course that was in "great shape".

"It's an excellent buy it's forward thinking," he said.

Mr Morris said it would be impossible to buy the land and build an 18-hole course for the money Mr Palmer paid.

Chamber of Commerce and Industry Queensland's Far Northern chairman Brett Moller said it was "a positive sign for our future".

"Port Douglas as a destination certainly needs investment like this and Clive Palmer is a significant property and development investor,'' he said.

It is understood other interest in the golf course included Sheraton Mirage owner David Marriner, who considered buying the course to amalgamate with the resort's links, a Far North syndicate and Chinese investors.

Article printed by The Cairns Post - November 7th 2012

Peter Musso licensed real estate agent at Ray White Smithfield 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, Kamerunga and surrounds.

Multiple Offers on a Property

This isn't exactly a topic specific to real estate in Cairns and Far North Queensland however it is something which I find myself discussing regularly with people; multiple offers on a property.

In the event where a property is listed for sale by private treaty (with an asking price) and more than one buyer expresses interest in making an offer to purchase, each of these buyers will be advised that there will be another offer in consideration and that the offer with the most attractive price and terms to the seller will be accepted.

To maintain fairness each of these buyers cannot know the price or terms of the other offers and must simply make their best offer in hope that it is accepted over all others.

This is at odds with a property which is listed for sale by auction whereby all bids (offers) are made in a public forum and each buyer is aware of exactly how much more they will need to offer in order to purchase the property. This method of sale through the bidding process will almost always produce the highest possible purchase price.

The Real Estate Institute of Queensland (REIQ) recently released a statement discussing this topic and also clarifying the legal obligations of the real estate agent during the multiple offer process:

The REIQ often receives queries from consumers about multiple offers on a property. A multiple offer occurs when more than one prospective buyer makes an offer on a property by submitting a Contract of Sale.

Multiple offers often happen in a seller’s market when competition for residential property is greatest and there are more buyers than there are properties for sale. However, it can occur in any market and especially for properties within an affordable price range.

Occasionally prospective buyers have alleged that agents tell them there is another offer on the property in order to secure a higher price for the seller, when in fact there is no competing offer.

There are heavy penalties for agents who mislead or deceive buyers by telling them there are competing offers when there are not.

When a seller is to be presented with multiple offers, a prudent agent will inform prospective buyers of that fact in writing and obtain a written acknowledgement. This gives potential buyers an opportunity to submit an offer if they have not already done so, or to revise an existing offer that has not yet been accepted by the seller.

Real estate agents have an obligation under the Property Agents and Motor Dealers Act to submit all offers that comply with the seller’s instructions to the agent.

Exceptions occur when, for example, the seller instructs their agent not to submit offers under a certain dollar figure.

Agents also have a statutory obligation to attempt to get the highest possible price for the seller. The law further requires that agents be fair to buyers.

Buyers should also be aware that sellers will examine all the terms and conditions of each offer before deciding to accept or reject any particular offer. The conditions can make certain offers more attractive for reasons other than the proposed price alone.

Some sellers may be prepared to accept a lower price if the offer is unconditional rather than take the risk that a higher offer may not proceed to settlement, because of the special conditions required by a buyer.

Statement posted by the REIQ on the 13th of August 2012.

Peter Musso licensed real estate agent at Ray White Smithfield 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, Kamerunga 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.

HTW Review the Cairns Residential Sales Market

Herron Todd White Cairns provide their analysis of the residential sales market within their national 'Month in Review' publication:

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The Cairns market remains at the bottom of the cycle. That said, the market appears to be consolidating from a dismal 2011, with sales volumes so far this year creeping up and prices at least for houses steadying. Our latest figures indicate a median house price in Cairns of $343,000 during February 2012, only marginally different from the $345,000 median house price recorded in August 2011 but still a sizeable drop compared to the $364,000 median house price recorded twelve months ago in February 2011.

The unit market also appears to be lifting in volumes though prices are being affected by higher strata insurance costs. Investor buyers in particular appear to be factoring these higher costs into the rental return equation and continuing to drive prices lower in order to maintain yields.

"...the market appears to be consolidating from a dismal 2011, with sales volumes so far this year creeping up and prices at least for houses steadying..."

The land market in recent months has been influenced by a large volume of receiver sales of both developer and consumer stock, selling at up to 30% discount to their former list prices. According to our Residential Land Survey, the number of new residential allotments sold in Cairns totalled 249 during 2011, a drop of 41% compared to the 420 lots sold during 2010, and 84% compared to the 1,583 lots sold at the peak of the market in 2007. Our belief is that Cairns land market volumes have reached bottom and are due to slowly recover, but that land sales for 2012 will still be relatively low.

View the full publication HERE

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: PNG investors eye Far North Queensland

PAPUA New Guinea residents are the largest foreign investors in the Far North, according to the latest figures from the Registrar of Titles.

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They bought commercial, residential and other property worth $4.5 million out of $16 million of foreign purchases in the last financial year.

Next on the list was the UK ($3.5 million), NZ ($2 million) and Japan ($1.9 million).

Other notable buyers were from the Czech Republic ($680,000), Greece ($530,000), Hong King ($491,470), Argentina ($490,000) and Malaysia ($394,300).

Hong Kong residents own the largest amount of land (1116ha) followed by Belgium (492ha), the UK (352ha), Japan (278ha) and China (91ha) while UK investors own the largest number of land parcels (257) followed by Japan (214), NZ (212) and PNG (101).

CBRE Cairns managing director Danny Betros said there had not been many large sales to PNG investors in recent times.

He said the last large sale was the $19 million three-storey office building at 120 Bunda St to a PNG consortium in July 2010. The building was bought by Mineral Resources Lihir Capital Ltd, a company that receives royalties from the $1 billion gold project on Lihir Island, and invests in property and other concerns on behalf of the community.

In May last year, a PNG family’s first foray into the Far North’s commercial property market was expected to be the start of further investments.

The Honale family bought the home of Channel 7 local news in Mulgrave Rd, Parramatta Park, for $3.2 million.

Mr Betros said there were about 12 groups representing PNG investors active in the Far North. He said the mining boom was sparking interest by PNG investors in the Far North as well as because of its close proximity.

It is understood a PNG consortium is also eyeing off one of the Cairns CBD’s largest office blocks, the Corporate Tower.

Greg Wood of Knight Frank Cairns said interest in property in Cairns had dropped off following the political stability in PNG.

Mr Wood said he expected the number of Australians and others working in the PNG resources sector to start buying mainly residential properties in Cairns for their families.

The Far North’s lifestyle, attractive property prices and the resource boom is drawing investors from PNG as well as Western Australia and Darwin who are snapping up prestige waterfront homes and land in the elite Bluewater estate.

The Cairns Post - Wednesday, April 11, 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 Property Information Seminar

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This Thursday (23rd February) Ray White Cairns Beaches & Ray White Smithfield will be hosting an information seminar for buyers and sellers of local real estate.

The event will feature a number of guest speakers on the current state of the market and discuss the associated opportunities available. Whether considering buying or selling locally it is sure to be an event not to be missed.

Location: Paradise Palms Country Club, Kewarra Beach
Time: 6:30pm Start - 8:30pm Finish
Contact: 07 4057 9111 or sales.cairnsbeaches@raywhite.com *Booking not necessary however recommended

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