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.

Strata Title Insurance Relief in the Far North Rejected

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A 12-month moratorium on the stamp duty paid on body corporate insurance has been ruled out by the State Government.

The decision follows a call by a body corporate industry leader to commit to a recommendation from a federal inquiry into residential strata title insurance last year that the Federal Government liaise with the Queensland Government to implement a 12-month moratorium on stamp duty to give some relief to property owners facing soaring bills.

Archers Body Corporate Management director Colin Archer said the 12-month stamp duty moratorium would provide a rebate equivalent to additional tax paid by North Queensland home owners on top of extra insurance costs.

But a spokeswoman for the State Treasurer Tim Nicholls said a moratorium would “not address the underlying causes of rising insurance costs.”

“The Queensland Government has no legislative jurisdiction over general insurance matters and cannot intervene in the decisions made by private companies as to the level of premium payable,” she said.

“Providing an exemption to specific types of entities in specific regions of the state would be inequitable to others who have been similarly affected.

“Duty exemptions for body corporate insurances would establish a precedent with potentially significant revenue consequences for the state.”

The spokeswoman said Queensland has the lowest rate of duty on strata title insurance in Australia.

“Land tax in Queensland is 20 per cent lower than the national average and transfer duty (stamp duty) is 12 per cent below the national average,” she said.

Article printed by The Cairns Weekend Post - Saturday 9th 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.

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.

Accommodation Occupancy Rates Best in Five Years

Throughout recent months I have had this statement affirmed to me by many local complex managers; all claiming to have had their best previous 12-month period since the GFC. I am told by most managers that since 2010 each year has shown a marked improvement in trend occupancy rates in turn positively influencing the nightly room rates achieved. This is welcomed news for many owners of holiday apartments who have been hit with a double-edged sword following the GFC with decreased returns and also increased expenses almost exclusively associated with rising strata-title insurance levies.

HOTELIERS in the Far North have had their best three months of occupancy rates in five years.

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The latest edition of the Tourism and Transport Forum-HOSTPLUS National Accommodation Barometer shows continuing strong demand for accommodation in Australia.

Forum chief executive John Lee said the industry was benefiting from the relatively strong Australian economy and popularity of short breaks.

“Demand for accommodation in our capitals, along with the Gold Coast and Cairns, is very strong at 81.3 per cent for the September quarter, on par with the same period in 2011,” he said.

“Pleasingly, Cairns saw an occupancy rate of 76.6 per cent for the quarter.

“Port Douglas saw very strong revenue per available room growth compared with the September 2011 quarter.”

Accor’s Cairns hotels finished last year with an average occupancy for its city hotels of 80.1 per cent, up more than 1 percentage point on 2011 and almost 9 percentage points ahead of the overall Cairns market.

A stand-out performed for the group was the Pullman Reef Hotel Casino, which achieved its highest occupancy on record, averaged 84 per cent for the year.

Pullman Reef Hotel Casino general manager Wayne Reynolds said the strength of occupancy last year augured well for this year.

“...We saw an increase in meetings and conferences, along with growth in domestic leisure and inbound business, particularly from China...”

“Pleasingly, we saw an increase in meetings and conferences, along with growth in domestic leisure and inbound business, particularly from China,” he said.

Article printed in The Cairns Post – 31st 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.

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.

Report says Cairns hotel industry will rebound

A NEW economic report forecasts a strong future for the Far North's hotel industry with steady improvements in occupancy rates and room prices after being in the doldrums for the past four years.

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The outlook, by leading economic advisory firm Deloitte Access Economics, says the improvements in occupancy rates and room prices indicate "a strong performance for one of Australia's most significant tourism regions" by June 2015.

There are at least 5328 hotel and resort beds, not including apartments or motels, in the region with the current average occupancy of 58.8 per cent predicted to rise to 66 per cent in three years and the average room rate rising from $117 to $131.

The report says occupancy rates are continuing to recover from the decline in Japan and natural disasters.

"Among other positive signs, the decision of China Eastern to commence flights to Cairns will have a positive impact on visitation and hence hotel market performance in the region," the report says.

"However, while occupancy rates have rebounded, they remain well off the levels experienced prior to 2008 and it is likely to take some time before they return to their pre-global financial crisis heights."

The report says by June 2015 occupancy rates are forecast to reach 66 per cent but warns that it will be "heavily reliant on" increases in international visitors.

Melbourne friends Malorie Raymakers, Mikaela Prentice and Emily Arnott are domestic travellers contributing to the region's economy.

"We've come for Schoolies because we decided the party scene on the Gold Coast wasn't really for us," Miss Arnott, 17, said.

It has been a strong holiday season for the region, boosted by the solar eclipse two weeks ago and the arrival of the first direct flights from China.

Queensland Hotels Association Far North accommodation division chairman Peter Blackburn said the signs were pointing to a better future but warned there were still some drawbacks.

"UK, Europe and US will continue to be restrained by their weak economies and the group market from Japan is restricted by air access," he said.

"China will continue to grow as long as direct flights are maintained after the end of the trial period." Hilton Cairns general manager John Lucas said the five-star segment was doing the best.

"These numbers reflect the overall accommodation sector, however, the five-star market is showing greater strength," he said.

Herron Todd White research director Rick Carr said the report was "encouraging".

Mr Carr said, despite the high Australian dollar, Australians were returning to the Far North to holiday.

Article printed by The Cairns Post - Thursday, November 29, 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.

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.

Petition for Action on Strata Insurance Premiums

The Federal Government's failure to implement the recommendations of a bi-partisan Inquiry into strata insurance price hikes has led to the launch of an online petition by North Queensland residents. The petition will be sent to insurance companies, the Insurance Council of Australia and state and federal MP's.

View page here to sign the petition:

www.change.org/queenslandinsurance

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.

China Boom Good for Far North's Economy

Just a quick post to update on a "hot topic" in the Far North at present - the recent introduction of direct flights from China. As someone on the ground speaking with buyers each day this topic comes up in every conversation involving the outlook for the local economy and property markets. And for good reason; the largest industry in Cairns is tourism with agriculture worth only half that in total gross domestic product. Needless to say when international conditions deteriorated post-GFC the economy in Cairns suffered - for better or worse, tourism is our life-blood.

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With further direct flights from China now confirmed by Cathay Pacific Airlines the extent to which Cairns is able to take advantage of this emerging international market is of increasing speculation. Without doubt there will be further news to come!

China boom is good fortune for Far North's tourism industry
Article printed by The Cairns Post 6th September 2012

THE number of Chinese travelling to the Far North is expected to double to nearly 190,000 a year within 12 months of three new services coming on stream from next month.

That’s the prediction of Cairns Airport chief executive officer Kevin Brown after Cathay Pacific Airlines yesterday announced changes to its arrival and departure times from Hong Kong to link to its flights from mainland China.

It comes as Chinese visitor numbers to the Far North continue to soar with the latest figures showing a 27 per cent jump on 2011 figures to 94,000 in the year ended June 30.

China Eastern flights arrive from Shanghai in October, China Southern flights from Guangzhou in December and the changes in Cathay’s daily schedule to connect with flights from Shanghai, Beijing, Guangzhou and other cities are from November.

Mr Brown said he expected the 3500 seats a week to be full.

"Passenger numbers could double within a 12-month period."

"Passenger numbers could double within a 12-month period," he said.

Mr Brown said the airport would be working with key organisations such as Advance Cairns, the chamber of commerce, Tourism Tropical North Queensland, James Cook University and the convention centre to ensure the success of the trial flights, to make them permanent, increase the frequency and to enhance the Cathay services.

"It’s not just tourism, but business, corporate, education and academia travel as well," he said.

Cathay’s Queensland business development manager Howard Field said the airline’s changes were to ensure smooth connection to flights between Hong Kong and eight cities in China and to prevent overnight stays in Hong Kong.

"We expect Chinese numbers to grow by 25 per cent," he said.

Tourism Tropical North Queensland chief executive officer Rob Giason said the flights meant the Far North was on target to reach 200,000 Chinese holidaymakers visiting the region by 2015. "But that could very well accelerate," he said.

Mr Giason said as well as the direct flights the industry expected to maintain the high numbers coming to Cairns from other cities such as Brisbane and Sydney.

According to Tourism Research Australia’s international visitor survey overall international visitors were down 6 per cent to 616,000 while spending was up $35 million to $800 million.

Cairns is the third most popular destination in Queensland for the Chinese after the Gold Coast (412,000, up 18 per cent) and Brisbane (109,000, up 35 per cent).

The survey also found the number of Japanese visitors was 87,000 (down 11 per cent), the UK 76,000 (18 per cent), the US 75,000 (down 1 per cent), NZ 44,000 (up 19 per cent) and Germany 41,000 (down 13 per cent).

Mr Brown said he treated the IVS figures, particularly Japan and Europe, with "a degree of caution".

"I don’t think they are as bad as that. I deal with actual passenger numbers not sample survey sizes," he said.

Mr Brown said he believed the Japanese figures were far better.

"I’ve been speaking to many tourism operators who have said they haven’t seen so many Japanese in a long time. It’s still a very strong market."

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 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.