Coal mine to deliver boost for Far North Queensland

People interested in property and real estate markets in Far North Queensland often ask about the present impact of jobs in the mining sector; after all, Cairns is the closest regional centre on mainland Australia to the burgeoning industry in Papua New Guinea, not to mention a seemingly ideal engineering and manufacturing hub for the booming resource sector in the Oceania-Australiasia region.

The truth of the matter is however that the overall economy in the Far North has benefited relatively very little from the mining industry; in fact, due to the high AU$ throughout recent years as a result of strong mining exports, the Far North has become a less attractive destination to it's traditionally popular international tourist markets. The news below regarding the allocation of 250 positions for tradespeople in the Far North serves more as yet another "vote of confidence" for the future of our recovering local economy.

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FLY-IN FLY-OUT mining jobs worth a combined $40 million are up for grabs for 250 Far Northern tradies as the world's biggest coal exporter spreads the wealth from its huge new projects in central Queensland.

BHP Billiton Mitsubishi Alliance wants a FIFO workforce for its newest Bowen Basin coal mines, and the resources giant has set aside a quarter of the 1000 vacancies exclusively for tradespeople from the Cairns region.

About 14,000 Brisbane- based tradies have already applied for the other 750 jobs, and BMA expects similar interest from the Far North.

The recruitment drive begins today, calling for qualified local tradespeople with or without mining experience.

In return, BMA is promising an "attractive" seven-on seven-off roster at the Daunia or Caval Ridge mines, access to latest technology and equipment, career development, and accommodation in a modern village while away at work.

Mayor Bob Manning said the plan was "visionary" and signalled growing investor confidence.

"Over the past few months there’s been times when I've felt like a rooster missing a few feathers but today I feel like a full-fledged rooster and I feel like crowing quite a bit about this," Cr Manning said.

"This announcement is a major stamp of confidence in this city.

"...It comes on the back of a number of announcements we've had in recent times and these announcements paint a somewhat brighter picture for our region..."

"It comes on the back of a number of announcements we've had in recent times and these announcements paint a somewhat brighter picture for our region.

"It sends the message that we’re back from lunch."

BMA's asset president Stephen Dumble said the successful Far Northern applicants would bring about $40 million in wages straight from the coal mine back to their home city.

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"And importantly it will create a number of other economic spin-offs that will take that total economic contribution to in excess of $60 million a year, through the services that will be required to support the jobs and the families of the employees – areas like housing and retail," Mr Dumble said. In an example of the indirect benefits of the extra jobs, BMA will have to charter about four more flights from Cairns Airport a week to ferry the staff to and from their new workplaces in central Queensland.

BMA is the state's biggest regional employer, with about 10,000 mining workers currently based in central Queensland. But a shortage of skilled workers in those traditional mining towns means the company is now looking to the far north and southeast of the state for staff.

Tropical North Queensland TAFE institute director Joann Pyne said the region was well placed to fill the vacancies, with growing numbers of students in mining-related courses.

"We've got a lot of people in the region who have spent the last few years really skilling up," Ms Pyne said.

"We find in times of unemployment, people spend a lot of time and energy making themselves very skilled so they’re in a prime position now."

TNQT will work closely with the mining giant to fashion courses around the job vacancies.

Mr Dumble said the new roles would commence midyear and applications were being taken now.

"We are looking for a combination of work- ready employees and new coal industry recruits for operator trades and processing roles," Mr Dumble said.

Article printed by the Cairns Post - 21st February 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.

Herron Todd White Cairns - The Year Ahead

As one of the many avid readers of the CairnsWatch report released by Herron Todd White I have followed the data presented with keen interest each month in and out for over the past 5 years. In the December 2010 edition of the CairnsWatch report it was officially stated that the Cairns property market was at the bottom of its overall cycle. Two years on and the CairnsWatch report still confirms that Cairns remains placed in the same position within its cycle although a general decline in median values throughout the region has been seen within that time. 

Herron Todd White can be forgiven for perhaps being a little too optimistic in their assessment of the future for the local economy at the time - whilst many areas within Australia have seen great recovery following the Global Financial Crisis, Far North Queensland has not been so lucky and to say that local business conditions throughout the past 4 years “have been tough” is a severe understatement.

We can only remain positive, and due to several important local economic developments (discussed below) we are currently experiencing our highest levels of local business and market confidence since the GFC first affected the region in early 2008. Herron Todd White’s assessment for the year ahead follows…

The Cairns residential property market remains at the bottom of the property market cycle, but there is light at the end of the tunnel with some tentative signs of consolidation that will continue during 2013.

The local economy is progressively improving, aided by a much stronger tourism season during 2012 and the recent start-up of direct air flights to China delivering greater numbers of Chinese tourists to Cairns. 

However it is taking a long time for these developments to filter through to the improvements in the consumer confidence that is needed to resurrect the local property market.

The building industry also appears to be making a comeback, with the latest statistics showing a 39% year-on-year increase in the number of building approvals issued for new house construction. Even so, conditions in the industry are still tough and unit construction remains dead-in-the-water.

"....the Cairns residential property market remains at the bottom of the property market cycle, but there is light at the end of the tunnel...."

One push factor for the market is that vacancy rates for rental property have lowered considerably over the past 12 months and are now extremely tight. According to our Cairns Rent Roll Survey, vacancy rates for houses have come down from a trend level of 4% in December 2010 to 2.2% in December 2011 and 1.3% in December 2012, while those for units have come down from 4.8% to 1.9% over the same period. In addition rents are climbing, rising by about $30 per week for houses and $15 per week for units over the past two years. Tight rental market conditions, rising rents and affordable property prices are providing the right pre-conditions for the market to gradually regain some momentum during the next 12 months.

Click here to download Herron Todd White's national report for 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.

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.

32 Hectare Business & Industrial Park Approved

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A SPRAWLING business and industrial park will soon rise from a cane paddock at Edmonton after a local third-generation farming family won their four-year legal battle over the plans. 

Pregno Family Investments has been tied up in the Cairns Planning and Environment Court since March 2009, appealing against the council's rejection of their proposed 32.2ha development.

But all seven development applications for the land along the southern corridor were finally given the green light by Judge Bill Everson last week and the Pregno group is now focused on the first stage of the development.

"It's a great relief," Pregno spokeswoman Meredith Gardiner said.

"It was very frustrating at times over the last four years."

“But now the council is working with us and it’s exactly what Cairns needs,” she said.

The Edmonton Busienss and Industry Park will occupy a 212ha cane farm east of the Bruce Highway at Edmonton. It is the biggest proposed Greenfield development in Queensland outside of the southeast.

Pregno expects about 4000 jobs to be created during the project and the tendering process will favour local contractors, Ms Gardiner said.

It will be built in six stages over about 20 years, eventually including a 250-bed hospital, several showrooms, business and technology parks, a homemaker centre and tavern, and district-level sporting fields.

The plans also dedicate 42ha along Blackfellow Creek to community and recreational uses such as barbeques and parklands.

Works permits for the first stage of construction could be granted as soon as June and a start by August.

Ms Gardiner said interest from prospective tenants was promising, and the project would complement other huge developments in the pipeline south of Cairns such as the Edmonton Town Centre, to be built on Mann Farm. The area’s councillor, John Schilling, believes the Edmonton Business and Industry Park will meet the growing needs of businesses in the area, which is tipped for a population boom during the coming decades.

“Edmonton is a fast-growing suburb and the demand for improved business and community facilities is increasing,” Cr Schilling said.

“It has been a long process but the end result will be beneficial for, especially the residents.”

Article printed by The Cairns Post - 4th February 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.

Launching some extra Magic in Cairns

Not a news item specifically relevant to property markets however I felt it important to note the general improvement in business confidence currently experienced within the tourism industry in the Far North...

AN experienced Great Barrier Reef operator today launches a new $3.5 million catamaran on the back of an imminent turnaround in tourism.

Director Tim North (front) and marketing manager Jeff
Cameron-Smith show off their new vessel.

Tim North of Reef Magic Cruises said there was "a feel-good factor" in Cairns.

He said he planned months ago to buy and refurbish the 32m vesselbecause he knew the good times were returning.

"The Cairns economy is picking up, tourism is picking up," Mr North said. "When tourism is going right you have to be ready for it, not when it arrives."

Mr North said he had "a gut feeling" that the industry was on the rebound so refinanced and borrowed money to expand.

"I believe we now have the two best 30m cats in Cairns."

Mr North, who has 30 years' experience on the Reef and has owned Reef Magic Cruises for 16 years, said Reef Magic III would be used primarily for daily Reef trips while the existing Reef Magic II would be for charters.

He said charters provided a growth area. The boat was surveyed to travel 320km off the coast and anywhere in Australia. Charters included weddings, conferences, cruise ship transfers and film shoots.

"I've got a feeling I'll be doing four or five charters a week," Mr North said.

"We did 30 cruise ship transfers last year and we do quite bit of film shooting, such as Sea Patrol.

"...We're on the up, now's the time to move..."

"I've had an inquiry for an 18-week film shoot. We're on the up, now's the time to move."

Reef Magic III was previously Fantasea Wonder in the Whitsundays and has 350 seats split over three levels with a maximum daily loading of 200 passengers.

It is powered by two diesel engines generating 1107kW and cruises comfortably at up to 24 knots.

Direct from Cairns it will reach the company's Marine World outer Reef pontoon in under 90 minutes.

Reef Magic II was built in Brisbane in 2007 and cost $5.5m and will be completely re-powered with state of the art Caterpillar engines and the on-board layout, facilities and water access points modified to become a self-sufficient outer Reef day charter vessel.

Article printed by The Cairns Post - 30th 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.

The Cairns Post: Brighter Outlook Propels Far North

THE Far North's economy has had a great start to the year, the latest CairnsWatch report says.

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Report author Rick Carr of Herron Todd White said the economic recovery "gained further momentum over the last month with most key indicators showing accelerated improvement".

"All is not yet rosy in the economy, but the progress made has been significant," he said.

Mr Carr said there had been gains in the key areas of employment, airport passenger numbers and building approvals.

He said the number of people in jobs rose by 4900 in December to a record high of 145,200.

"This continued the strong run of employment growth that took place during 2012," Mr Carr said.

Passenger numbers through Cairns Airport's domestic terminal "continues to achieve record highs" while they were also rising at the international terminal boosted by new services from China, he said.

Click to download current and past 
CairnsWatch reports

Mr Carr said average tourist accommodation occupancy continued to rise during the latest quarter to reach 66.7 per cent in September 2012 compared with 63.1 per cent in September 2011 and average room rates improved to about $125 per night, and $155 at Port Douglas.

"Building approval numbers have recovered significantly during 2012, with a 38.6 per cent increase in the number of houses approved from January to November 2012 compared to the same period of 2011," he said.

Cairns Chamber of Commerce chief executive officer Deb Hancock said Cairns was on course for a successful 2013.

"The growth of 4900 jobs since November shows that general business confidence is growing," she said. 

"Business owners should look to the future with confidence given that there are a number of positive economic indicators all aligning to support a positive trajectory for 2013."

"Business owners should look to the future with confidence given that there are a number of positive economic indicators all aligning to support a positive trajectory for 2013."

Chamber of Commerce and Industry Queensland Far Northern chairman Brett Moller said the report allowed the business community to be "cautiously optimistic".

"While recent council and State Government announcements and commitments to reboot our economy are very welcomed we need investment from the private sector to sustain our economy and the environment to encourage that investment is slowly returning."

Article printed by The Cairns Weekend Post - 2nd February 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.

Building industry showing recovery

The construction industry is preparing for a much rosier year after the latest housing approval figures show a 25 per cent jump in the Far North.

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Builders say the figures show their sector is recovering following a prolonged slump that led to the collapse of major developers such as the Hedley Group, CEC and Glencorp.

Master Builders regional chairman Ron Bannah said: “There’s been pockets of really good work out there.

“It can only get better. I believe we started to see a turn around two to three months ago.

“Builders appear to be busy. Many are doing estimates and quotes.

“One builder told me on December 14 that he had seven contracts in the new year while another said he was not taking the three weeks off during Christmas and the New Year, that he was working through.”

In the 11 months to November last year there were 919 housing approvals, up 181 on the 738 in the previous period. In Cairns the figures were up 38.5 per cent, a 118 increase from 306 to 424. Approvals in Cairns in November last year were up 64 per cent from 31 to 48 compared to November, 2011 and in the Far North by 6 per cent from 66 to 70.

Local builders such as Steve Slatyer say the last few years have been tough for the industry, but the increase in building approvals spells good tidings.

“It’s been a tough few years. It’s been steady, but on the quiet side of steady, just ticking over,” he said.

“More building approvals are a good sign – it means confidence is returning.”

Mr Bannah said he tried to organise a bus to take builders to Townsville to inspect a cyclone testing station at James Cook University and of the 30 he contacted none were available because they were “flat strap”.

“We haven’t seen this for the past three to four years. I hope it’s going to start to ramp up and all the indicators are that it’s going to.

“It’s never been cheaper to build because the interest rates are so low.”

Herron Todd White Cairns research director Rick Carr said there were new houses being built but still not units.

He said the growing population and low rental vacancy rates were “encouraging people to build.”

Mr Carr said investors remained quiet and it was still cheaper to buy existing homes.

“Some people are opting to build. Twelve months ago I would have said not many. It’s not back to robust conditions but the balance is gradually tipping.”

Austart Homes owner Phil Matthews said he remained optimistic.

“It’s still pretty tough. Building will grow in the next 12 months but not double. We are a long way from what it used to be.

“There won’t be any parties this year. It will be a tough year and only the switched-on builders will roll along.”

He said dropping the water tank requirements would save buyers $7,000-$8,000 which would make a difference.

Article printed in The Cairns Post – 18^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.

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.

Palmer on course to set region swinging

MINING giant Clive Palmer has revealed big plans for his latest golf course at Port Douglas, including employing more staff.

The former Sea Temple golf course is to be renamed Palmer Sea Reef and becomes the fourth course in his Palmer Golf portfolio.

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The billionaire bought the 6125m, par 71 course, clubhouse, bar, pro golf shop and 44 residential lots from the troubled Juniper Group for about $7 million in November last year.

Palmer Golf managing director Angie Ison said the acquisition would "prove to be a shot in the arm for the region".

She said they hoped to retain most staff and "create more jobs" for functions, lunches, weddings and other activities at the clubhouse.

Mrs Ison said a management agreement with the Accor hotel group ended next month.

She said the company would be using its clout with the three other courses on the Sunshine and Gold Coasts to market the region.

"We are already looking at ways of strengthening the course's position in the marketplace and investigating the possibility of hosting tournaments at Palmer Sea Reef, which will be very exciting for everyone," Mrs Ison said.

She said residents would be encouraged to play golf and join the club as part of the plans to be "an integral part of the local community as well as attracting tourists".

Membership would include the other three courses and it was hoped to keep course fees about the same, Mrs Ison said.

She said marketing and selling the 44 premium residential housing allotments lining the course would start soon.

Mrs Ison said Palmer Golf needed to highlight that the course designed by Thomson, Wolveridge and Perret was the only tropical links course in the world.

Port Douglas Chamber of Commerce president Phoebe Kitto said it was encouraging to see new and private investment in the town.

"Clive Palmer doesn't do anything lightly and I do believe he does see the potential of Port Douglas," she said.

"Clive Palmer doesn't do anything lightly and I do believe he does see the potential of Port Douglas"

She said Port Douglas was ideal for people from the south to play golf during the winter.

"But we still have a lot more to do to attract more and the right investments," Ms Kitto said.

She said Mr Palmer hoped to speak at a chamber lunch in March.

Article printed in The Cairns Post - 17th 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.

Cairns CBD Aquarium Plan

PLANS for a $33.5 million aquarium in the heart of Cairns have taken a giant leap forward after the project's developers bought a 4000sqm block of land just a stone's throw from the city's popular Esplanade tourist strip.

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Trinity Beach business partners Daniel Leipnik and Andrew Preston bought the land from the owners of the Novotel Cairns Oasis Resort, bounded by Abbott, Florence and Lake streets, for $2 million.

"Buying this land shows our commitment to the Cairns aquarium," Mr Leipnik, who is the chief executive officer of Cairns Aquarium and Reef Research Centre Pty Ltd, said.

"We are very excited. The passion for this is our driving force. It is our primary love."

Expressions of interest for the design and development will close on March 15, and the Cairns Aquarium opening date is set for late 2016. Mr Leipnik said specialists behind aquariums in Melbourne, Sydney, Mooloolaba, Korea, Dubai and Singapore were being targeted for the design and development.

He said, apart from the aquarium designers, almost everything else involved in the building, including construction, supplies, marine life, website designs and signs, would be sourced from the Far North.

An estimated 250 people would be employed on the project, including 150 construction workers, nearly 80 full-time operational staff and up to 25 volunteers.

The businessmen have committed $15 million to the aquarium with the balance from private investors and local, state and federal government funding with applications before the three levels of government.

Independent research suggests between 355,000 and 360,000 visitors a year but the proponents are aiming for up to 500,000.

Mr Preston said the designers were being urged to provide something "innovative and unique" for Cairns.
"It will be a very spectacular, natural and iconic building with a wow factor," he said.

The ground floor will contain two "gigantic" tanks containing a million litres-plus of water. One would be a mini Great Barrier Reef and the other a freshwater lagoon.

There will be five main themes of dangers of the deep (sharks, irukandji, box jellyfish, stonefish, pufferfish and sea snakes), river monsters (sawfish, giant barramundi, freshwater stingrays, lungfish and crocodiles), reptiles and amphibians, mountain streams and rivers and life in the mangroves.

The mature mango trees and a eucalyptus tree on the site would be retained and be part of a Daintree-style boardwalk and mangrove lagoon feature.

The businessmen have signed a memorandum of understanding with the Reef and Rainforest Research Centre and are negotiating one with James Cook University.

They said they had previously negotiated with Ports North for waterfront land, as well as considering Cairns Regional Council property, but decided to buy their own.

Article printed in The Cairns Post - January 9th 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.

Herron Todd White - Cairns 'Year in Review'

Within their national publication Herron Todd White has provided the following review of the Cairns marketplace throughout 2012.

The Cairns residential property market during 2012 has persisted at the bottom of the property cycle with sales rates remaining low and prices weak. Properties that were well located and correctly priced sold reasonably readily but properties that were ambitiously priced or in secondary locations continued to struggle. Even though the overall volume of sales has been gradually increasing, median property prices during 2012 reduced due to property price reductions and higher than normal proportions of low-priced mortgagee in possession sales.

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Our research indicates that 13% of the market during 2012 has been either mortgagee in possession or receiver sales. Property demand from investors and first home buyers has been weak and the market for bottom end housing and tourist orientated property has performed poorly. Demand for better quality houses and units in good locations has been reasonably solid up to around $600,000 but the market then tapered off quickly.

The mainstream residential market, which takes out the top and bottom 5% of the market, currently shows a house price range of about $225,000 through to $595,000. The median house price trend stood at $331,000 in September 2012, a 3.7% reduction since September 2011. The established unit median price has also reduced by 4.4% in the year to September 2012 due to the additional side-effects of greatly increased insurance charges and body corporate levies.

Vacancy rates for rental property have tightened considerably during 2012, especially for houses, moving the current market well beneath the ‘balanced market’ range normally accepted as a 3% to 5% vacancy rate. This reflects a lack of rental availability due to the lack of new rental housing construction and the slow state of the investment property market. The trend vacancy rate for houses was 1.3% during October 2012, while units showed a trend vacancy rate of 2.5% and the overall market vacancy rate stood at 1.9%. As a result of rental property shortages, rents escalated across all categories of housing during 2012, increasing between September 2011 and September 2012 by around $25 per week for houses and $15 per week for units.

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.

The most important research resource for a property investor is the local council: Terry Ryder

ALL the successful investors I know have a common factor: commitment to research.

The best of them research continuously and copiously. They tune out media comment and tune into information. They end up making good choices about product and location.

But I suspect one factor many overlook is the most important research topic of all: the local council.

I would never buy in an area unless the local authority impressed me. The personality of the council leadership can be the difference between a region growing or stagnating.

I don’t mean pro-development. The Gold Coast has had a series of pro-developer regimes over the years, and it hasn’t done the real estate market a whole lot of good.

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I mean pro-community, pro-jobs and pro-prosperity. It’s not the same as being pro-development, nor does it mean being anti-heritage or anti-environment.

A council that’s forward-thinking and proactive in fostering a healthy business environment and a strong community ethic can do wonders for the local property market.

Cairns in north Queensland provides a current example. Twenty or so years ago Cairns was all the rage, driven by Japanese tourism and investment. When that waned, so did Cairns.

Townsville, once regarded as the poor relation of Cairns, overtook its northern rival and left it behind because it proactively and successfully generated a well-rounded economy with more than tourism in its arsenal.

Now Cairns is fighting back. The time is fast approaching when Cairns will be worthy of investor attention again.

Cairns Regional Council has offered to forego millions in revenue from developers to encourage business and local employment. The council is waiving fees and infrastructure charges, so long as developers use 80% local workers and suppliers, and finish their projects before the end of 2014.

It’s about generating economic activity and employment. That will translate, in time, to a stronger property market.

The councils that run the twin border cities of Albury (New South Wales) and Wodonga (Victoria) strike me as go-ahead as well. One current project is a plan to re-energise a rundown part of central Wodonga to create a new commercial heart. Around $26 million is being on infrastructure and renovation of features such as the railway station buildings, to attract businesses to invest in the area, with new retail, entertainment and commercial developments.

The general theme of Albury-Wodonga is one of growth and expansion.

The Goldfields town of Maryborough in Victoria has successfully re-invented and re-invigorated itself. Not so long ago the town was colloquially known as Scaryborough and had more than its share of issues. Local people with energy and good intentions decided to change it status and its image.

Much has changed. Maryborough has managed to combine a prosperous and expanding business community, particularly in manufacturing, with a particular emphasis on spotlighting the town’s many fine heritage buildings, including a railway station that put the legendary American author Mark Twain into raptures when he visited in 1895.

The town and the Central Goldfields Shire is going places and its median house saw double-digit growth in the past 12 months, while Melbourne down the road has been going backwards.

This factor, the energy and attitude of the local council, is one investors should not overlook. When I’m researching a location, I often call the mayor (the mobile phone number is usually on the council website). Most are happy to chat about their town or region and it’s helps to provide a feel about whether the location is moving forward or not.

Article written by Terry Ryder for PropertyObserver.com.au 

Thursday, 22 November 2012

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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.

The Cairns Post: Things Are Looking Up

Rob Gaison, the chief executive officer of Tourism Tropical North Queensland, recently took the opportunity to write to the Cairns Post highlighting his confidence that the local tourism industry has finally "turned a corner". His following article provides a timely account for the past, present and future outlook for local tourism including good reason for his renewed positivity following particularly difficult recent times experienced by Cairns' most valuable industry.

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The total solar eclipse crossing Far North Queensland today is the icing on the cake for our region.

We have has the best tourism season since the global financial crisis decimated the number of travellers worldwide and, happily, the strong visitor figures are continuing into our shoulder season.

With an estimated 60,000 visitors in tropical North Queensland for the once-in-a-lifetime experience of the moon blacking out the sun, more than 20 million people logging onto live broadcasts of the event and the surrounding publicity, we are centre stage before a whole new audience.

Never before have so many eyes been upon us, so we have grasped this opportunity that nature has presented us to remind both old friends and new travellers that centre stage is where we should be.

Far North Queensland offers many once-in-a-lifetime experiences. We have the world’s largest reef and oldest tropical rainforest.

We are the only place where two World Heritage areas are side by side and there are more than 650 daily touring options to explore these natural wonders.

Higher visitor numbers will bring a renewed interest in redeveloping attractions and building new infrastructure. Just last week Double Island and the Sea Temple Golf and Country Club at Port Douglas sold.

"It is no coincidence that this investment comes on the back of renewed optimism in tourism."

It is no coincidence that this investment comes on the back of renewed optimism in tourism.

Tourism is the economic driver of this region, generating seven million export dollars a day, employing 32,000 people and, importantly, introducing business and lifestyle opportunities to a new audience.

Tourism Tropical North Queensland has set bold goals, but our strategy to increase the value of tourism to our region by $1 billion to $3.2 billion in 2015 is on track.

Our marketing push has been enhanced by the State Government’s new direction of destinational funding and acknowledgement of regional tourism organisations.

We have been buoyed by the start of direct flights from China last month which are poised to take us towards our goal of 200,000 Chinese visitors by 2015.

The October CairnsWatch report further justifies the positive outlook for our economy.

Domestic airport arrivals increased by 7.7 per cent in the year to September and accommodation occupancy rose during the last quarter to 65.3 per cent.

Our strategy to diversify tourism into areas such as sporting events is paying dividends with the success of the Cairns Ironman boosting visitor numbers and 22 more events, including the Inaugural Great Barrier Reef Masters Games, poised to inject millions of dollars into the region.

The good times will not be fleeting. We are counting down to Chinese New Year, another peak period of demand.

In between, and beyond, our 2015 goals are firmly in mind with co-ordinated campaigns in key markets such as Japan where we are seeing growth.

Events such as Corroboree in May next year, which brings 300 Australian specialists to Cairns from Europe and the UK, will supercharge awareness of our region into the future.

A determined focus, hard work and nature’s helping hand have brought out the best in Tropical North Queensland.

Article published by The Cairns Post - 14th November 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 rental prices rise by $25 per week

AVERAGE house rentals in Cairns have increased by $25 a week and are likely to rise even more as the accommodation squeeze worsens, forcing more people to live in caravans or couch-surf as they wait for affordable properties.

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The latest CairnsWatch snapshot also shows unit rentals rose by $15 a week in the year ending September, an increase also attributed to the shortage of lease properties.

The release of the report comes as property managers say people are living at caravan parks because they are struggling to find rentals.

"We're still getting population growth, even though it's slower than normal, and there is a very finite supply of housing," Herron Todd White director Rick Carr, who authors the monthly report, said.

"Empty-nesters are still coming up from Sydney and Melbourne and other places for lifestyle reasons."

The survey shows the city's vacancy rate for houses was 1.7 per cent, while just 2.9 per cent of units were available for lease.

The average house jumped from $325 a week to $350 in the year ending September. Units increased from $240 to $255.

The rental squeeze has pushed more tenants -- mainly youths, single mothers and separated middle-aged people -- to seek help from welfare agencies such as The Salvation Army and OzCare.

Salvation Army Lieutenant Darren Kingston said: "It seems that we are getting busier and busier with people seeking accommodation.

"People have moved up here and found they haven't been able to afford mortgage repayments or the increase in rents. We're getting people in our welfare centre saying it's just too hard."

Lt Kingston said people stranded between homes often resorted to sleeping on couches at friends' homes.

Elders Real Estate Cairns senior property manager Tegan Hicks said securing a rental was highly competitive.

"We cannot keep up with the demand for houses to rent at present," she said.

"Units, if they are presented well and priced right, will rent quickly. Some tenants are living in caravan parks because they cannot find suitable rental properties."

Mr Carr said the property shortage appeared likely to continue over the next year.

The report shows only a slight increase in housing approvals last month.

"There haven't been any unit developments approved for a very long time," he said.

Article printed by The Cairns Post - November 3rd 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 Property Market Month in Review - HTW

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The latest figures on Cairns give the population growth rate at about the 1% mark, which implies that for the first time in many years population growth is coming solely from natural increase (excess of births over deaths) rather than migration. Or in other words, migration has slowed right down, and right now there are just as many people moving out of Cairns as there are moving in. Moreover from a property market perspective the people moving in are likely to be demographically different to the ones moving out – the people moving in are more typically older/empty nester lifestyle migrants with completely different housing needs to the ones moving out, who are more likely to be younger singles/couples/families in search of better employment and income opportunities.

As population growth and the economy have flattened so too have property and development. Apartment construction in particular is at a complete standstill with no new Council building approvals issued for units in the past 12 months. Land development is similarly in the doldrums due to severely depleted residential land demand.

However it is not all doom and gloom - there is light at the end of the tunnel. Even though we’ve been saying for some time that the Cairns market is at the bottom of the cycle and is about to turn, this time we REALLY BELIEVE that the Cairns market has bottomed. Our evidence is that:

• Cairns has been experiencing a good tourist season this year which, together with the start-up of direct air services to China next month, will be game-changers in terms of future economic and market confidence;
• Property is moving again with sales volumes increasing in recent months;
• There is limited new construction meaning that supply will shorten as sales volumes increase;
• The rental market remains tight (current trend vacancy rate around 2.5%) and rents are increasing;
• Prices after inflation are down about 25% on the peak of the market, and interest rates are low and heading lower meaning improved affordability.

Source: Herron Todd White Cairns, The Month in Review - Sept 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.

Hotel Room Rates Set to Rise

Recent media coverage of the room rates for accommodation in the Far North has provided some hope to owners of holiday-style apartments. Throughout the past 3-4 years domestic tourism arrivals figures have maintained trend growth however in order to remain competitive many hotels have been forced to reduce their room rates by considerable amounts ultimately affecting the profitability for apartments and unit owners well-below historical returns. 

With holiday occupancy rates now showing considerable improvement local operators are now able to increase their room rates in order to restore profitability. A recent study suggests that hotel occupancy rates in Far North Queensland should return to pre-GFC levels within the next 3 years with the price of rooms to rise by 4.5 per cent.

Article text: The Deloitte Access Economics Tourism and Hotel Market Outlook released today shows average annual room occupancy rates in the Far North have improved to 58.1 per cent, but are still 5.5 per cent lower than they were five years ago.

The report said the average room rate would rise by 4.5 per cent to reach $132 by the March quarter of 2015, while the revenue per available room would also rise by 9.1 per cent.

"While growth in room rates and yields are expected to be relatively strong over the forecast period, they will remain considerably lower than the levels prevailing in the capital cities and broadly similar to other regional destinations," the report said.

Mercure Cairns Harbourside general manager Shane Edwards said there had been a noticeable increase in visitors since May.

"Occupancy has been quite strong certainly for the last three months and we’re more optimistic than this time last year," he said.

The Far North’s lower room prices will also help increase occupancy.

"Occupancy rates are forecast to reach 66 per cent by the March quarter 2015, driven among other things, by room rates which are considerably below those witnessed in other parts of the nation," the report said.

Mr Edwards agreed, saying room prices were still well below other Australian cities.

"If I look at average rates in 2005 they’re certainly nowhere near what they were back then," he said.

"I think if volume is consistent then rates will slowly start to increase in line with other cities."

The direct flights from China along with November’s solar eclipse have also given hotels confidence they will stay full beyond the traditional high season.

"With the extra people coming in it can only get better and we’re quite excited about it, usually when you see a dip we’re hoping that occupancy levels will stay high," Mr Edwards said.

Tourism Tropical North Queensland chief executive Rob Giason said the past six months have seen good growth and sustained occupancy.

Article posted by The Cairns Post - August 30th 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 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.