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.

Click to Enlarge

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

Click to Enlarge

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.

$35m Smithfield Water Park to Go Ahead

An agreement between proposed 'Adventure Waters' water theme park and Mulgrave Central Mill was reached yesterday which will see construction of the $35 million dollar development begin in July.

Mulgrave Central Mill's appeal against the development with concerns for traffic and flooding was all that stood in front of construction beginning this year.

The development will employ over 300 people in the construction phase, and another 200 in it's general operations.

Cairns Deputy Mayor Margaret Cochrane, whose division includes the water park site, said it was "fabulous news".

Read full article