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.

Click to Enlarge

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.

Click to Enlarge

"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

Click to Enlarge

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.

Click to Enlarge

"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

Click to Enlarge

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Article printed by The Cairns Post - 4th February 2013

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

Launching some extra Magic in Cairns

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Article printed by The Cairns Post - 30th January 2013

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

The Cairns Post: Brighter Outlook Propels Far North

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

Click to Enlarge

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.

Click to Enlarge

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.

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.

Click to Enlarge

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.

Click to Enlarge

“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.

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.

Click to Enlarge

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.

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.

Click to Enlarge

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.

Click to Enlarge

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.

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.

Click to Enlarge

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

View original article post here

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.

Click to Enlarge

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.

Click to Enlarge

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.

Clive Palmer Buys Port Douglas Resort & Golf Course

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

Clive Palmer - Australian Mining Magnate

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

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

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

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

Aerial view of Port Douglas

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Article printed by The Cairns Post - November 7th 2012

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