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.

Employment in the Far North reaches five-year high

It is generally accepted that employment is the best indicator of how an economy is performing, in turn affecting confidence within the local property market. With improved tourism conditions expected throughout the coming years as a result of growing international markets, Far North Queensland's trend employment rate, and in turn real estate market confidence, can be expected to continually strengthen.

THE Far North has hit a five-year workforce high, with 145,200 people in employment as a result of a bumper tourism season and a resurgent construction industry.

Nearly 5000 people more were hired last month compared with November and that figure was 8800 more than in December 2011.

Analysts say a vibrant tourism season, the new direct flights from China and more construction activity are behind the jump.

It follows a hearty November, when 2200 people left the dole queue and found work after 60,000 people flocked to the region for the solar eclipse.

Herron Todd White research director Rick Carr said the region's employment rose by 4900 in December to 145,200, the highest since the Australian Bureau of Statistics began breaking down regional labour figures in 2007. Included in the figures is Larissa Stremouchiw who has worked at the Salt House for the past month.

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

“Far North Queensland bucked the statewide trend, where employment fell by 4300.” Mr Carr said unemployment increased from 8.1 per cent in November to 8.4 per cent as extra people started looking for work.

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“But the main news is the continuing jobs growth as a result of a much improved tourist season, the tourism boost from direct China flights and the building industry starting to stir again,” he said.

“Anecdotally I’m hearing that university graduates and school leavers are getting work straight away,” Mr Carr said.

He said this indicated that employers were confident about the economy and were hiring staff.

The next largest workforce recorded in the Far North was 142,800 in October 2008.

Tourism Tropical North Queensland sales and marketing director Brian Hennessy said the figures showed employment growth was closely related to tourism.

“The increase in employment comes on the back of strong growth in the domestic sector last year, the introduction of direct flights to China, the extra 60,000 visitors for the eclipse and a very buoyant Christmas and New Year holiday period,” he said.

Cairns Chamber of Commerce chief executive officer Debbie Hancock said the figures were “heartening news for the business leaders of Cairns.”

“Far North Queensland is no longer the highest unemployment region in Queensland. The growth of 4900 jobs since November shows that general business confidence is growing,” she said.

Member for Cairns Gavin King said with tourism on the up, the broader economy was now showing signs of confidence with good news emerging in a range of sectors, such as the automotive, home builders and marine industries.

“Recent examples include L.K. Motors, which quadrupled its turnover last year, and BSE Cairns Slipways growing its workforce from around 50 employees early in 2012 to more than 200 staff currently,” he said.

But Cairns-based Senator Jan McLucas warned that the region was now entering “a typically slower time of year for our local economy with the wet season keeping tourists away.”

“We do, however have Chinese New Year celebrations to look forward to which may help bolster this quieter time,” she said.

Tracy Carr, who graduated from James Cook University with degrees in law and business last year, obtained a job with Preston Law two months ago.

“I was quite surprised to get a job so quickly after graduating,” she said.

The 23-year old, said she was looking forward to a 12-month traineeship before being admitted as a solicitor.

Article printed in The Cairns Post – 25^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.

Cairns Post: China Mulls Stronger Ties

Growing optimism is certainly evident within the local tourism industry in Cairns; Far North Queensland recently became the fastest growing region in Australia for Chinese travellers as a result of several major airlines commencing direct services. With rapid growth in visitors expected to continue throughout coming years the Chinese will place serious consideration into the establishment of a consulate in Cairns, just as the Japanese government did throughout the tourist boom in the 90's.

THE Chinese Government will consider establishing a consulate in Cairns after a call from business and tourism leaders.

The move comes as a second Chinese airline, China Southern, begins trial flights bringing travellers to the region tomorrow for the start of the Chinese New Year.

About 20,000 travellers are expected on the China Southern flights from Guangzhou as well as seven charters, China Eastern’s three-a-week services from Shanghai, Cathay Pacific’s daily flights from Hong Kong and on domestic flights from southern ports.

While a Canberra embassy spokeswoman said the Government believed its Brisbane-based consulate-general was capable of providing their citizens with consular assistance, it would be willing to discuss the suggestion.

“The consulate-general has provided effective consular protection and assistance to events involving Chinese citizens since the establishment (in Brisbane) and it is willing to further strengthen co-operation with the local authorities in Cairns in the future to provide Chinese citizens with a more convenient and timely consular assistance,” she said.

Advance Cairns chairman
Cam Charlton 

Advance Cairns chairman Cam Charlton said he was pleased with the response.

“They have left the door open… they haven’t said yes, they haven’t said no,” he said.

Mr Charlton said the embassy appeared to be watching developments in the Far North.

“Obviously they are keeping an eye on Cairns with the significant increase in the number of Chinese visitors,” he said.

Mr Charlton said the Japanese established a consulate in 1997 after their residents started flocking to the region in the 1980s and ‘90s.

A Cairns Chinese consulate would service the needs of their citizens as well as investment and business interests, he said.

Mr Charlton said a consulate would make the visa process easier for holidaymakers and business people travelling to China from Cairns.

It would also help “build and sustain” the direct flights by China Eastern and the soon-to-start trial services by China Southern, he said.

Mr Charlton said once Advance Cairns finalised its China Business Engagement and Investment Strategy it would meet Chinese consular officials in the next few months.

The Far North is the fastest-growing region in Australia for Chinese travellers with 110,000 a year, on target to reach 200,000 by 2015.

The Far North is the fastest-growing region in Australia for Chinese travellers with 110,000 a year, on target to reach 200,000 by 2015.

The Japanese have had a consulate in Cairns for 15 years, The British, Germans, Austrians, Swedish and Italians also have consular representatives based in the city.

Article printed in The Cairns Post – 29th 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.