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.

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.

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.

The Cairns Post: It's High Time to Invest...

The Far North is in prime position to capitalise on Asia's aviation boom, writes Barry Jackson, president of the Australian and International Pilots Association.

I SPENT the early part of my aviation career in North Queensland working on cattle stations, and the experience left me with a lifelong wonder as the enormous potential of this vast area of Australia.

The natural potential of water and soil are well known. But what is mentioned less is how this part of our nation is some 3000km closer to Asia than the southern states.

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It is high time for Australia to look at diversifying away from the populated southeast states and investing in regional Australia. One of the most logical and effective means of doing this is through the development of aviation infrastructure and the construction of airports.

When it comes to new airports, the southern states are hopelessly hamstrung by politics and the cost of land. Sydney, for example, has been tying itself in knots for decades over where to put a second airport.

Well, maybe it is time to look at the advantages of building airports away from these populous areas.

Regional America provides a salient example. The construction of "superhubs", like the Dallas/Fort Worth and Memphis airports has provided an enormous boost to the local and national economy.

The mighty Federal Express is able to base itself out of Memphis, with 200 FedEx flights a night carrying about 3.3 million packages.

The Memphis distribution centre is a wonderful example of the power of the "build it and they will come" mentality, which is so unfashionable in modern Australia. The parallels with our situation are obvious. The Memphis Superhub was developed because of it's relative proximity to Europe - North Queensland and Asia are our nation's equivalents.

The latest International Civil Aviation Organisation data shows that for every dollar generated by an airport or airline, three more are generated in revenue to the region by services and businesses supporting the facility. With Dallas/Fort Worth airport generating about $US16.6 billion ($15.8 billion) a year, the advantages to the local economy are obvious. Think of the jobs that could be created in North Queensland by a development of this sort. A major airport would generate enormous benefits for generations.

I note that the potential for establishing a strategic hub has not gone completely unrecognised in this part of the country. Grazier Brian Henry, for example, is planning a major airport development at his pastoral station, Sugarbag, at Mt Garnet.

This strategic development, if constructed, would see live and processed cattle, sheep and goats flown directly to Asia. If sufficient volume is generated, this could become a viable way of feeding the massive population to our north and reaping economic benefits.

A strategic hub would also obviously assist access to North Queensland's myriad tourist attractions, which would be of obvious interest to the growing Asian middle class, millions of whom are increasingly able to afford international travel.

And what better escape from the hustle and bustle of the growing Asian cities than the Great Barrier Reef and North Queensland's national parks?

The cost of flying has dropped markedly in recent times, and advancing technology and furl efficiency should assist this process to continue.

We must ensure North Queensland develops the necessary infrastructure to be part of this looming boom.

Article printed by The Cairns Weekend Post - Saturday 8th December 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.

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.

Building Approvals Continue to Rise

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

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

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

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

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

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

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

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

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

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

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

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

Cairns Rental Vacancy Rate Approaching Stress Level

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Further coverage concerning increasingly strengthening local rental market conditions and for good reason - Herron Todd White released their monthly report for June showing that the overall Cairns market vacancy rate of 2.1% is fast approaching the sub-2% 'stress level'. Article printed in The Cairns Post this week:

THE shortage of rental properties in Queensland's Far North is expected to bring investors and developers back into the market.

Property researcher Rick Carr said the rental vacancy rate in Cairns was just 2 per cent.

He said if it fell below 2 per cent it would be reaching "almost stress levels" and if it continued in the next 12 months then the lack of properties for rent would reach "crunch time."

"There is very little new supply. There are virtually no new rental units under construction," Mr Carr said.

"Rents are starting to climb and in the past 12 months houses have gone up by $10 a week and units by $5 a week and they will continue to climb," he said.

Mr Carr, the research director of Herron Todd White in Cairns, said he expected rents to rise by up to $30 a week in the next 12 months.

"It's creating a very good equation for investors to come into the Cairns market," he said.

"There is very little new supply. There are virtually no new rental units under construction." 

Mr Carr said there was a time when a $350,000 house returned $350 a week in rental income, and while that house was now worth $320,000, the rent had risen to $360 a week.

"The rental return for investors is continuing to improve, however, there is very little capital growth in the rental proposition," he said.

Mr Carr warned that Cairns was facing competition elsewhere with rental property shortages in Townsville, Mackay and Rockhampton where it was more suited to the mining industry.

He said it was up to Cairns investors to initiate the demand to attract out-of-town buyers.

Mr Carr said last year there were just 112 new unit sales, down from 1600 in 2007.

Real Estate Institute of Queensland Far North chairman Greg Clyde-Smith said there was definitely a shortage of houses for rent.

"Some developers are making noises about building unit complexes but there is still an over supply of apartments," he said.

Mr Clyde-Smith said demand for houses was high.

Article printed in The Cairns Post - Thursday 28th June 2012

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

Hope for Far North Queensland's Building Industry

A SURGE in housing approvals this year has given the Far North's construction industry its strongest sign yet that it is emerging from a three-year slump.

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An analysis of data released by Master Builders yesterday revealed the region had experienced a 75 per cent increase in total housing approvals in the April quarter, compared with the same four months last year.

The Australian Bureau of Statistics' Building Approvals report shows about 1000 new houses were approved in the Far North in the 10 months to April this year.

Local builders say the upward trend could signal the beginning of an industry recovery.

"The industry's moving and we're starting to see some green shoots coming through," Master Builders Cairns regional manager Ron Bannah said.

Mr Bannah said the strong first quarter was largely a result of the former state government's extension of the Building Boost grant.

Builders who persisted in their search for work since construction activity slowed to a trickle about three years ago were reaping the rewards, he said.

"The biggest issue we've all faced is the lack of confidence," Mr Bannah said.

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"That's holding us back.

"For an industry that's been down on its knees, there have still been some people chipping away and making things happen.

"Yes, it's still tough but some of the project home builders, whilst their numbers might be down, have got a reasonable number of jobs on their books."

The Master Builders' analysis shows regional centres had recorded a strong start to the year, with an increase of 92.2 per cent in approvals in Mackay and 64.2 per cent on the Darling Downs.

But the southeast corner was lagging compared with the rest of the state, with the Gold Coast dropping 0.3 per cent and Brisbane (West Moreton) increasing by just 0.5 per cent.

Master Builders' director of housing policy Paul Bidwell said while the housing sector was slowly recovering, governments needed to take a lead in ensuring costs were affordable.

"We're particularly concerned about the impact of the carbon tax and how escalating costs will further exacerbate the price divide between new and established housing," he said.

"We're urging all levels of government to consider key reforms and stimulus measures aimed at the building sector that will boost consumer confidence and activity levels."

Article printed in The Cairns Post
Wednesday 13th June 2012

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

Cairns Post: Rental Demand On the Rise

Not "breaking news" by any stretch however I have chosen to post this article simply to highlight the level of coverage that is being given to the rental market within local news sources at present. With the lengthened slow-down in local construction experienced there is little doubt that this will be an ongoing topic of particular concern within our marketplace for a long time to come.

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Article text: DEMAND for rental properties has risen in Cairns with reduced vacancy rates across the region and Queensland and median house sale prices have fallen in the same period, according to two separate reports.

The Real Estate Institute of Queensland (REIQ) released the March residential vacancy rates on April 30 that showed Cairns rental vacancies have dropped by 1.3 per cent since this time last year.

REIQ Cairns chairman Greg Clyde-Smith described the property market as “reasonably healthy”.

“Cairns has quite a different economy from the rest of the state but the figures revealed are not that different – from 3.8 (per cent) last year to 2.5 per cent this year, it’s a substantial drop,” Mr Clyde-Smith said.

“We are showing signs of growth as tourism is slowly starting to recover.”

Mr Clyde-Smith said sales were also quite lively although property prices aren’t very high and he forecasted that if the economy recovers as well as expected it will bring more jobs to the region, which will put more pressure on the rental market.

“There has also been an increase in inquiries for investment properties and we are hopeful the interest rate changes from the reserve bank yesterday (May 1) will enhance sales,” he said.

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An RP Data report to January 2012 said median sales prices of houses in the region had dropped.

At Clifton Beach median sales prices were down by 20 per cent in a year (23 sales) and 15.6 per cent in a quarter, while rental yields in the same area increased by 5.6 per cent.

At Holloways Beach the median house price per quarter dropped by 12.2 per cent (-33.6 per cent in a year with 14 sales) while rental yields increased by 8.1 per cent.

The Cairns Post - Saturday May 5th 2012
Writer: Denise Carter

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: New Housing Approvals Nearly Doubled

NEW housing approvals have nearly doubled in the Far North, surprising industry leaders. Has the tide finally turned? Is this the year Far North Queensland's economy finally gets back on track?

In the latest figures released by the Australian Bureau of Statistics, new housing approvals for the region jumped from 57 in January to 102 in February, a 79 per cent increase.

Master Builders Cairns regional manager Ron Bannah said he was delighted and pleased by the rise.
"This news is quite pleasing and it’s been a long time coming," he said.

"I think there’s a bit of confidence starting to return to our industry."

Mr Bannah said the figures bode well for the future.

"You’ve got to remember these people were making their decisions to build a home three or four months ago, before the state election, the local government election and well before the end of the financial year," he said.

Mr Bannah had not been expecting an improvement until about August, after the elections and the close of the financial year.

"This puts us in good stead... it’s a sign of better things to come.’’

Master Builders housing policy director Paul Bidwell said that for the first time since the Global Financial Crisis all regional areas recorded positive growth for total new residential approvals.

"It is particularly pleasing to note substantial increases in activity for regions like the Sunshine Coast and Far North Queensland, although it is difficult to know if these results are a meaningful upward trend or just a seasonal response to the traditional Christmas/New Year shutdown period," he said.

"These results are in line with the Queensland figures released earlier this month, which reveal that Queensland is performing better than the national average, with total dwellings approved rising by 13 per cent compared with a fall of 7.8 per cent nationally.

After months of hardship, though, Cairns builders were tentative to claim this is the start of a boom, with the State Government’s Building Boost Grant only available until the end of this month.

"...One of the main factors is that land has become more affordable too, especially in places like Gordonvale, Edmonton and Smithfield..."

"We’ve noticed a change in the past three to four weeks, but I know the $10,000 subsidy ends very soon," Austart Homes owner Phil Matthews said.

"We’ve decided to just keep doing what we’re doing and re-assess in the next six weeks.

"We’re not getting over-excited about it. We’re still well down and we’re not sitting there saying ‘Hallelujah it’s over’."

"But we have turned a corner and by the end of the year, I fully expect the building industry to swing, not back to where it was, but a definite improvement."

Dixon Homes managing director Andrew Thomas said the increase was spread across the region, not just in fast-growth areas.

"One of the main factors is that land has become more affordable too, especially in places like Gordonvale, Edmonton and Smithfield," he said.

"Overall conditions are improving. We’ve been doing a lot of work to ensure we put ourselves in good position."

The Cairns Post - Wednesday, April 18, 2012
Writer: Nick Dalton and 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.

Recovery Plan Sought for Local Construction

The conditions of property markets in Far North Queensland are perfectly typified by the relative health of the local building and construction industry. Following the effects of the global financial crisis in 2007 the rate of new dwelling approvals in Cairns urban area took a significant hit. Despite a slight recovery in approvals experienced during 2009, throughout the past 12 months approvals have remained at a virtual standstill.

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As illustrated by the graph opposite, the current trend number of new dwelling approvals in Cairns urban areas sits well below 50 per month with almost no new units approved. Industry analysts assert that a minimum trend of 50 approvals per month is required for the region's building industry to prosper.

The Cairns Post recently reported on publication by the Urban Development Institute of Australia (UDIA) showing that $318 million has been wiped off Far North Queensland's economy in the past three years from the downturn. The UDIA also outline within their report critical actions required in order to return prosperity to the building sector.

Roadmap for Recovery in Cairns' Construction
The Cairns Weekend Post - 25th February 2012

A DEVELOPMENT hit-list has been drawn up to turn around a $300 million downturn in the Far North's construction industry.

A report by the Urban Development Institute of Australia shows that $318 million has been wiped off the region's economy in the past three years from the downturn.

UDIA Queensland president Matthew Wallace said the institute had 16 critical actions which it considered pivotal to restoring the prosperity of the sector.

"They include an overhaul of the prevailing planning culture and review systems in Queensland to deliver quicker and less costly outcomes, short-term removal of stamp duty on off the plan sales, greater leadership in the delivery of infrastructure and a senior government taskforce to undertake a training strategy to grow the construction workforce," he said.

"We now need decisive action from the incoming Queensland government to turn industry conditions around and harness the economic potential of the sector.

The report found that there had been a 26.4 per cent decline in construction in the Far North in the past three years – double that of the state decrease.

It said in the last financial year 846 dwellings were approved in the region, less than a third of the total in 2007-08 of 2994.

Despite the downturn, the region's industry remained a major employer, accounting for 10 per cent or 12,300 jobs.

Far North UDIA president Gerard Obersky said the Government had created a system that was "inefficient, prohibitive and layered in overlapping departmental assessment or consideration".

"As a result, the costs from these problems are continually spiralling. The planning process has been complicated to a point where delays, taxes and the subsequent cost of this process are making housing unaffordable," he said.

LNP candidate for Cairns Gavin King said the party had elevated the property and construction sector as "one of our top economic priorities".

"Many of the recommendations by the UDIA have been adopted and released as part of the LNP's property and construction strategy," he said.

Labor candidate Kirsten Lesina said Queensland had the lowest standard transfer duty rates of any mainland state and the Building Boost was having a direct impact on the new housing market which included a $10,000 grant for all new homes under $600,000, plus the $7000 first home buyers' grant.

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.

North Point Estate Sold to Local Developer

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The future for Smithfield's North Point Estate is now a little clearer with local developer and builder John Richardson fighting off interstate and foreign interest for the purchase. The residential subdivision is a key development site on Cairns northern beaches opposite the Smithfield shopping centre and part of the originally planned Smithfield Town Centre.

The site was originally pegged to carry an extension to the Smithfield shopping centre, including a theatre complex and unit development, until plans were blocked following the collapse of owner Capital Globe Group in 2010.

John Richardson's company has in the past been a strict housing construction business so it is easy to assume that this will too be the future for North Point Estate ...however watch this space as further details are clarified...

Smithfield North Point Sale Coup

Article printed in the Cairns Post - Wednesday 15th February 2012

LOW-profile developer and builder John Richardson has beaten off strong competition to acquire the strategic North Point Estate residential subdivision at Smithfield.

His company Richardson Plant Hire has bought the 18.4ha property alongside the Captain Cook Highway for $3.7 million plus GST.

The northern section of the property once formed part of the $500 million Smithfield Town Centre project proposed by developer Steve Pellegrino.

However, the Cairns Regional Council blocked the centre in March last year.

Northpoint has existing development approval for residential sub-division with mixed zoning, including residential 2 and 3.

A two-level display home is included. A section of the land is south of Stanton Rd while the bulk of the property is north of the road.

Mr Richardson, who owns David McCoy Homes, Ken Frost Construction and Cairns Key Real Estate, said he had yet to decide what he planned for the property.

He said he would meet Mr Pellegrino to discuss what options were available with the northern section.

Mr Richardson is also involved with the development of the Seaside at Kewarra 56-lot residential estate off Poolwood Rd, the 19.5ha Half Moon Bay Estate at the end of Reed Rd at Trinity Park and the Smithfield Village master planned community, also at Trinity Park.

Urban Development Institute of Australia Far North branch president Gerard Obersky said Mr Richardson was long established as a quality contractor in civil and building construction as well as a leading developer with a proven record.

"Never scared to have a go, he has been innovative and progressive," Mr Obersky said.

"John’s recent acquisition in North Point Estate is the strongest possible endorsement in the area by a local developer."

The property was sold through an expressions of interest campaign by Colliers International Cairns for Brisbane-based McGrathNicol receivers.

Managing director Stacey Quaid said there was keen interest in the property from throughout Australia, China and New Zealand.

He said the property was very strategic with a handful of short-listed offers considered by the receivers on behalf of the National Australia Bank.

Mr Quaid said Mr Richardson was an ideal buyer with many years’ experience in putting together house and land packages.

He said there was a shortage of residential land on the northern beaches and this would help meet demand.

"It’s fantastic that a local buyer is the new owner," Mr Quaid said.

The prominent development site was associated with murdered businessman Shaquil Haque.

The sale follows the collapse of the Capital Globe Group, the company headed by Mr Haque.

In February last year, McGrathNicol was appointed receivers by the National Australia Bank.

Mr Haque and his financial adviser Charles Young were shot dead in the Pakistan capital Islamabad in 2010.

View the Cairns Post article online here

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

National Housing Shortage to Fuel Unit Demand

A recent report produced by the National Housing Supply Council (NHSC) has reaffirmed signs that Australia’s chronic property shortage is set to be one of the key issues underlying the real estate market for years to come.

The NHSC’s report titled the ‘State of Supply Report 2011’ shows that Australia's overall shortage of dwellings currently sits at 186,800 and is projected to hit 640,000 by 2030.

In terms of sheer numbers, the largest housing shortfalls are in NSW and Queensland, says the report, with shortfalls of 73,700 and 61,900 respectively.

Key factors behind Australia's national housing shortage include:

• The country's high rate of population growth;
• A weak post-GFC construction market;
• Australia's ageing population;
• Significant growth in the number of lone-person households; and
• Significant growth in the number of households containing couples without children.

The report states that as a result of these underlying factors, the NHSC expects higher density housing to increase in popularity in the coming decades.

"Most regions are projected to see a greater relative increase in demand for flats, apartments and townhouses than for detached houses," says the report.

Far North Queensland is one of the fastest growing regions in the State. Between 2001 and 2006 FNQ had the third highest growth rate and absolute growth outside South East Queensland. This growth has largely been driven by net migration, with natural increases remaining relatively steady.

Current population projections for FNQ to 2031 are shown in the second graph. High, medium and low series projections have been prepared to consider a range of potential future outcomes.

Click to Enlarge

Click to Enlarge

Key finding of the recent NHSC 'State of Supply Report 2011' report include:

• Despite weaker market conditions, the housing shortage continues to widen.
• Underlying demand for housing grew by an estimated 159,200 dwellings in the year to 30 June 2010 – slightly more than the 156,500 forecast in the 2010 report.
• Net additional housing supply  increased by 131,000 dwellings over the same period, below the 140,700 projected in the 2010 report.
• The gap between these measures of underlying demand and supply increased by 28,200 to 186,800  over 2009-10.
• The largest housing shortfalls in numerical terms are in NSW and Queensland, with shortfalls of 73,700 and 61,900 respectively.
• Relative to the size of its market, the largest shortfall is in the Northern Territory, where the Council estimates the shortfall to exceed 10 per cent of total underlying demand.
• Data from the states and from the Council’s analysis of recent building approvals data suggest that supply is likely to fall short of the medium-growth projections (meaning a larger gap) in the short term.
• Projections, based on trend building rates and household growth, suggest that this gap could increase to over 640,000 over the next 20 years .
• This growing gap indicates that housing production needs to lift well above trend to reduce the likelihood that housing shortages and poor affordability impact adversely on economic growth and standards of living.

View the full ‘State of Supply Report 2011’ report at the NHSC website HERE

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

$178 Million Cairns CBD & Waterfront Developments

Within the past 7 days there have been two progressions in major development projects which have been very well received by the local tourism and construction industries.

The Cairns Regional Council has now officially approved the $155 million Entertainment Precinct development allowing for the progress of the design, lodgement of development applications and calls for expressions of interest from contractors.

Cairns Entertainment Precinct - Artist Impression

The development approval came down to the line last Wednesday at the Council’s meeting with six councillors voting for the proposal and five against, however after months of deliberations and scrutiny the development will now progress.

See Cairns Post article HERE

Another “Shot in the Arm” for the local construction industry came early this week when the contract for the $23 million Cairns foreshore redevelopment was awarded.

Artist Impression of Refurbished Wharf Shed No.2

Up to 120 workers will be employed by Hutchinson Builders to transform the heritage-listed Wharf Shed No.2 into commercial premises.

See Cairns Post article HERE

These projects will serve as a much needed double boost for Cairns and the North Queensland region, bringing major new entertainment, leisure and tourism facilities to the city and generating new employment not only throughout the construction phases yet also well into the future via ongoing hospitality and tourism service operations.

Click to enlarge

Click to enlarge

Peter Musso - Ray White Cairns Beaches - Real estate agent selling property in Trinity Beach, Kewarra Beach, Clifton Beach, Palm Cove, Trinity Park, Smithfield, Yorkeys Knob, Holloways Beach, Machans Beach

Higher Rents Loom as Construction Remains Slow

The Cairns Post reported today that rental yields could begin substantially increasing as early as January 2012 with the region facing a severe housing shortage.

As illustrated in the graphs below, new building approvals within the region have been at a virtual standstill throughout the past 12-18 months. Only approximately 35 new houses have been approved each month; well below the minimum of 50 required in order to keep up with local population growth.

As a result, the rental vacancy rate for houses has seen a sharp downward trend throughout the same period and is expected to continue doing so with no real improvement in building approvals to be seen. Watch this space!

Article text: CAIRNS landlords could reap the benefits of increased rental returns as early as January with the city facing a housing shortage. Are you looking for a rental property?

Tightening rental vacancies, a slump in building approvals and wary investors has left Cairns agents searching for rental properties, particularly houses.

While rental prices continue to stay steady, with the average three bedroom house renting from $350 a week and a two bedroom unfurnished unit starting at $180 a week, agents say the demand for houses will force rental prices up.

A recent Herron Todd White CairnsWatch report indicated vacancy rates for houses was sitting at 2 per cent, with the rate at 3.1 per cent for the same period last year.

"The housing side of things is very tight, especially for this time of year,’’ LJ Hooker Edge Hill director Ross Moller said.

"There are plenty of units but vacant houses are far and few between. We’ve got eight vacant houses and we could put someone into those houses today, but that’s all we’ve got.

"If there isn’t an increase of houses available on the market in coming weeks, especially coming into January, then the demand for houses could see rental prices for houses start to go up.

"On the other hand units might come down to encourage people to rent units.

"There’s plenty of units and there’s no shortage that’s for sure."


Peter Musso - Ray White Cairns Beaches - Real estate agent selling property in Trinity Beach, Kewarra Beach, Clifton Beach, Palm Cove, Trinity Park, Smithfield, Yorkeys Knob, Holloways Beach, Machans Beach

SIGNS OF RECOVERY FOR LOCAL CONSTRUCTION

A building industry leader believes the sector has turned the corner, despite the release of an unflattering first quarter report.

Master Builders Far North regional manager Ron Bannah said the industry’s outlook was looking better. “My feeling is that we are in a pretty good position,” he said.

Mr Bannah said the post-cyclone Yasi rebuilding process was starting to kick in and associated with the Cairns Regional Council’s $ 4 million infrastructure discount scheme there was cause for optimism.

The rebuilding program is expected to employ up to 1000 local builders and subcontractors and the discounts will fast-track 32 major construction projects over the next 12 months.

Mr Bannah said there were other good signs, including 70 building apprentices being re-employed over the past year. “Apprentices usually get the raw end of the stick and they are the first to be put off,” he said. “But to Constructions Skills Queensland’s credit and other people, 70 apprentices have been reengaged.”

Mr Bannah said entries for this year’s Housing and Construction Awards were more than last year’s. “When I went to Brisbane on May 9 for a meeting, there were only 48 entries but, as of last night, there are 90,” Mr Bannah said. “ That’s more than last year’s 77. I am quite surprised.”

He said, at one stage, there was the possibility the $100,000 awards night would be cancelled. “But not anymore. Ninety is great,” Mr Bannah said.

The Master Builders Survey of Industry Conditions report for the March quarter said the first three months had been another tough quarter for the state’s building industry, with flooding, cyclones and weaker demand impacting building activity levels. “The weather has, however, not been the sole challenge for the state’s construction industry during the March quarter,” it said.

“Financing issues including tighter lending criteria and higher than average mortgage rates have also weighed heavily on industry activity. Consumers and businesses, particularly those with no direct exposure to the mining boom, remain cautious about the economic outlook and hesitant to spend money unnecessarily in the short term.

Far North Queensland has been particularly hard hit by these trends and this has been compounded by the impact of the high Australian dollar on the tourism industry. A revival in the local construction industry is just what the region needs to help increase the employment rate and confidence in local housing markets.

Article published by The Cairns Post - 30th May 2011

Peter Musso - Ray White Cairns Beaches - Property agent selling real estate in Trinity Beach, Kewarra Beach, Clifton Beach, Palm Cove, Trinity Park, Smithfield, Yorkeys Knob, Holloways Beach, Machans Beach

JCU's Bid to Triple Student Numbers

James Cook University has revealed plans to triple the size of its Cairns campus to 10,000 students in 15 years after record high enrolments.

Business leaders have welcomed the goal and said the university will be a major driver for the region’s economy and will help retain and attract professionals. The University’s value to the Cairns economy is already $86 million.

About $100 million worth of investment was on the way or soon to start, with designs for the $25 million signature Cairns Institute building to be shortlisted soon.
Cairns Chamber of Commerce president Jeremy Blockey said the university had come “an awful long way” and further expansion would fuel jobs such as in construction for accommodation.

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Peter Musso - Ray White Cairns Beaches - Property agent selling real estate in Trinity Beach, Kewarra Beach, Clifton Beach, Palm Cove, Trinity Park, Smithfield, Yorkeys Knob, Holloways Beach, Machans Beach

$240m Cairns Cultural Precinct Approved

The Queensland State Government has given it's go-ahead for the construction of Cairns' world-class cultural precinct centre.

The project, described by one MP as the Darling Harbour of Cairns, will help re-ignite the local economy, boosting the ailing construction industry by employing up to 1000 people during the construction phase.
It will help establish Cairns as the cultural capital of North Queensland, opening up new markets in festivals, cultural exhibitions and conventions and providing world-class bases for existing and new arts communities.

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Peter Musso - Ray White Cairns Beaches - Property agent selling real estate in Trinity Beach, Kewarra Beach, Clifton Beach, Palm Cove, Trinity Park, Smithfield, Yorkeys Knob, Holloways Beach, Machans Beach

Local Tradesman Shortage Expected to Slow Growth

Cairns is unlikely to experience a residential construction boom, as occurred before the global financial crisis, due to lack in skilled local tradesmen.

The Urban Development Institute of Australia's president Adam Gowlett, who was re-elected for another 12-month term last Wednesday, said "ideally a home building resurgence would be gradual rather than fast."

Mr Gowlett said the outlook for residential construction for the remainder of 2010 was still quiet, despite promising signs in other areas of the economy.

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