Coal mine to deliver boost for Far North Queensland

People interested in property and real estate markets in Far North Queensland often ask about the present impact of jobs in the mining sector; after all, Cairns is the closest regional centre on mainland Australia to the burgeoning industry in Papua New Guinea, not to mention a seemingly ideal engineering and manufacturing hub for the booming resource sector in the Oceania-Australiasia region.

The truth of the matter is however that the overall economy in the Far North has benefited relatively very little from the mining industry; in fact, due to the high AU$ throughout recent years as a result of strong mining exports, the Far North has become a less attractive destination to it's traditionally popular international tourist markets. The news below regarding the allocation of 250 positions for tradespeople in the Far North serves more as yet another "vote of confidence" for the future of our recovering local economy.

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FLY-IN FLY-OUT mining jobs worth a combined $40 million are up for grabs for 250 Far Northern tradies as the world's biggest coal exporter spreads the wealth from its huge new projects in central Queensland.

BHP Billiton Mitsubishi Alliance wants a FIFO workforce for its newest Bowen Basin coal mines, and the resources giant has set aside a quarter of the 1000 vacancies exclusively for tradespeople from the Cairns region.

About 14,000 Brisbane- based tradies have already applied for the other 750 jobs, and BMA expects similar interest from the Far North.

The recruitment drive begins today, calling for qualified local tradespeople with or without mining experience.

In return, BMA is promising an "attractive" seven-on seven-off roster at the Daunia or Caval Ridge mines, access to latest technology and equipment, career development, and accommodation in a modern village while away at work.

Mayor Bob Manning said the plan was "visionary" and signalled growing investor confidence.

"Over the past few months there’s been times when I've felt like a rooster missing a few feathers but today I feel like a full-fledged rooster and I feel like crowing quite a bit about this," Cr Manning said.

"This announcement is a major stamp of confidence in this city.

"...It comes on the back of a number of announcements we've had in recent times and these announcements paint a somewhat brighter picture for our region..."

"It comes on the back of a number of announcements we've had in recent times and these announcements paint a somewhat brighter picture for our region.

"It sends the message that we’re back from lunch."

BMA's asset president Stephen Dumble said the successful Far Northern applicants would bring about $40 million in wages straight from the coal mine back to their home city.

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"And importantly it will create a number of other economic spin-offs that will take that total economic contribution to in excess of $60 million a year, through the services that will be required to support the jobs and the families of the employees – areas like housing and retail," Mr Dumble said. In an example of the indirect benefits of the extra jobs, BMA will have to charter about four more flights from Cairns Airport a week to ferry the staff to and from their new workplaces in central Queensland.

BMA is the state's biggest regional employer, with about 10,000 mining workers currently based in central Queensland. But a shortage of skilled workers in those traditional mining towns means the company is now looking to the far north and southeast of the state for staff.

Tropical North Queensland TAFE institute director Joann Pyne said the region was well placed to fill the vacancies, with growing numbers of students in mining-related courses.

"We've got a lot of people in the region who have spent the last few years really skilling up," Ms Pyne said.

"We find in times of unemployment, people spend a lot of time and energy making themselves very skilled so they’re in a prime position now."

TNQT will work closely with the mining giant to fashion courses around the job vacancies.

Mr Dumble said the new roles would commence midyear and applications were being taken now.

"We are looking for a combination of work- ready employees and new coal industry recruits for operator trades and processing roles," Mr Dumble said.

Article printed by the Cairns Post - 21st February 2013

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

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.

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.

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.

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Report author Rick Carr of Herron Todd White said the economic recovery "gained further momentum over the last month with most key indicators showing accelerated improvement".

"All is not yet rosy in the economy, but the progress made has been significant," he said.

Mr Carr said there had been gains in the key areas of employment, airport passenger numbers and building approvals.

He said the number of people in jobs rose by 4900 in December to a record high of 145,200.

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

Passenger numbers through Cairns Airport's domestic terminal "continues to achieve record highs" while they were also rising at the international terminal boosted by new services from China, he said.

Click to download current and past 
CairnsWatch reports

Mr Carr said average tourist accommodation occupancy continued to rise during the latest quarter to reach 66.7 per cent in September 2012 compared with 63.1 per cent in September 2011 and average room rates improved to about $125 per night, and $155 at Port Douglas.

"Building approval numbers have recovered significantly during 2012, with a 38.6 per cent increase in the number of houses approved from January to November 2012 compared to the same period of 2011," he said.

Cairns Chamber of Commerce chief executive officer Deb Hancock said Cairns was on course for a successful 2013.

"The growth of 4900 jobs since November shows that general business confidence is growing," she said. 

"Business owners should look to the future with confidence given that there are a number of positive economic indicators all aligning to support a positive trajectory for 2013."

"Business owners should look to the future with confidence given that there are a number of positive economic indicators all aligning to support a positive trajectory for 2013."

Chamber of Commerce and Industry Queensland Far Northern chairman Brett Moller said the report allowed the business community to be "cautiously optimistic".

"While recent council and State Government announcements and commitments to reboot our economy are very welcomed we need investment from the private sector to sustain our economy and the environment to encourage that investment is slowly returning."

Article printed by The Cairns Weekend Post - 2nd February 2013

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

Building industry showing recovery

The construction industry is preparing for a much rosier year after the latest housing approval figures show a 25 per cent jump in the Far North.

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Builders say the figures show their sector is recovering following a prolonged slump that led to the collapse of major developers such as the Hedley Group, CEC and Glencorp.

Master Builders regional chairman Ron Bannah said: “There’s been pockets of really good work out there.

“It can only get better. I believe we started to see a turn around two to three months ago.

“Builders appear to be busy. Many are doing estimates and quotes.

“One builder told me on December 14 that he had seven contracts in the new year while another said he was not taking the three weeks off during Christmas and the New Year, that he was working through.”

In the 11 months to November last year there were 919 housing approvals, up 181 on the 738 in the previous period. In Cairns the figures were up 38.5 per cent, a 118 increase from 306 to 424. Approvals in Cairns in November last year were up 64 per cent from 31 to 48 compared to November, 2011 and in the Far North by 6 per cent from 66 to 70.

Local builders such as Steve Slatyer say the last few years have been tough for the industry, but the increase in building approvals spells good tidings.

“It’s been a tough few years. It’s been steady, but on the quiet side of steady, just ticking over,” he said.

“More building approvals are a good sign – it means confidence is returning.”

Mr Bannah said he tried to organise a bus to take builders to Townsville to inspect a cyclone testing station at James Cook University and of the 30 he contacted none were available because they were “flat strap”.

“We haven’t seen this for the past three to four years. I hope it’s going to start to ramp up and all the indicators are that it’s going to.

“It’s never been cheaper to build because the interest rates are so low.”

Herron Todd White Cairns research director Rick Carr said there were new houses being built but still not units.

He said the growing population and low rental vacancy rates were “encouraging people to build.”

Mr Carr said investors remained quiet and it was still cheaper to buy existing homes.

“Some people are opting to build. Twelve months ago I would have said not many. It’s not back to robust conditions but the balance is gradually tipping.”

Austart Homes owner Phil Matthews said he remained optimistic.

“It’s still pretty tough. Building will grow in the next 12 months but not double. We are a long way from what it used to be.

“There won’t be any parties this year. It will be a tough year and only the switched-on builders will roll along.”

He said dropping the water tank requirements would save buyers $7,000-$8,000 which would make a difference.

Article printed in The Cairns Post – 18^th January 2013

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

Employment in the Far North reaches five-year high

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Article printed in The Cairns Post – 25^th January 2013

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

Cairns Post: China Mulls Stronger Ties

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

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

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

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

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

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

Advance Cairns chairman
Cam Charlton 

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

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

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

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

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

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

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

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

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

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

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

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

Article printed in The Cairns Post – 29th January 2013

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

Palmer on course to set region swinging

MINING giant Clive Palmer has revealed big plans for his latest golf course at Port Douglas, including employing more staff.

The former Sea Temple golf course is to be renamed Palmer Sea Reef and becomes the fourth course in his Palmer Golf portfolio.

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The billionaire bought the 6125m, par 71 course, clubhouse, bar, pro golf shop and 44 residential lots from the troubled Juniper Group for about $7 million in November last year.

Palmer Golf managing director Angie Ison said the acquisition would "prove to be a shot in the arm for the region".

She said they hoped to retain most staff and "create more jobs" for functions, lunches, weddings and other activities at the clubhouse.

Mrs Ison said a management agreement with the Accor hotel group ended next month.

She said the company would be using its clout with the three other courses on the Sunshine and Gold Coasts to market the region.

"We are already looking at ways of strengthening the course's position in the marketplace and investigating the possibility of hosting tournaments at Palmer Sea Reef, which will be very exciting for everyone," Mrs Ison said.

She said residents would be encouraged to play golf and join the club as part of the plans to be "an integral part of the local community as well as attracting tourists".

Membership would include the other three courses and it was hoped to keep course fees about the same, Mrs Ison said.

She said marketing and selling the 44 premium residential housing allotments lining the course would start soon.

Mrs Ison said Palmer Golf needed to highlight that the course designed by Thomson, Wolveridge and Perret was the only tropical links course in the world.

Port Douglas Chamber of Commerce president Phoebe Kitto said it was encouraging to see new and private investment in the town.

"Clive Palmer doesn't do anything lightly and I do believe he does see the potential of Port Douglas," she said.

"Clive Palmer doesn't do anything lightly and I do believe he does see the potential of Port Douglas"

She said Port Douglas was ideal for people from the south to play golf during the winter.

"But we still have a lot more to do to attract more and the right investments," Ms Kitto said.

She said Mr Palmer hoped to speak at a chamber lunch in March.

Article printed in The Cairns Post - 17th January 2013

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

Cairns CBD Aquarium Plan

PLANS for a $33.5 million aquarium in the heart of Cairns have taken a giant leap forward after the project's developers bought a 4000sqm block of land just a stone's throw from the city's popular Esplanade tourist strip.

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Trinity Beach business partners Daniel Leipnik and Andrew Preston bought the land from the owners of the Novotel Cairns Oasis Resort, bounded by Abbott, Florence and Lake streets, for $2 million.

"Buying this land shows our commitment to the Cairns aquarium," Mr Leipnik, who is the chief executive officer of Cairns Aquarium and Reef Research Centre Pty Ltd, said.

"We are very excited. The passion for this is our driving force. It is our primary love."

Expressions of interest for the design and development will close on March 15, and the Cairns Aquarium opening date is set for late 2016. Mr Leipnik said specialists behind aquariums in Melbourne, Sydney, Mooloolaba, Korea, Dubai and Singapore were being targeted for the design and development.

He said, apart from the aquarium designers, almost everything else involved in the building, including construction, supplies, marine life, website designs and signs, would be sourced from the Far North.

An estimated 250 people would be employed on the project, including 150 construction workers, nearly 80 full-time operational staff and up to 25 volunteers.

The businessmen have committed $15 million to the aquarium with the balance from private investors and local, state and federal government funding with applications before the three levels of government.

Independent research suggests between 355,000 and 360,000 visitors a year but the proponents are aiming for up to 500,000.

Mr Preston said the designers were being urged to provide something "innovative and unique" for Cairns.
"It will be a very spectacular, natural and iconic building with a wow factor," he said.

The ground floor will contain two "gigantic" tanks containing a million litres-plus of water. One would be a mini Great Barrier Reef and the other a freshwater lagoon.

There will be five main themes of dangers of the deep (sharks, irukandji, box jellyfish, stonefish, pufferfish and sea snakes), river monsters (sawfish, giant barramundi, freshwater stingrays, lungfish and crocodiles), reptiles and amphibians, mountain streams and rivers and life in the mangroves.

The mature mango trees and a eucalyptus tree on the site would be retained and be part of a Daintree-style boardwalk and mangrove lagoon feature.

The businessmen have signed a memorandum of understanding with the Reef and Rainforest Research Centre and are negotiating one with James Cook University.

They said they had previously negotiated with Ports North for waterfront land, as well as considering Cairns Regional Council property, but decided to buy their own.

Article printed in The Cairns Post - January 9th 2013

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

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.

Report says Cairns hotel industry will rebound

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Article printed by The Cairns Post - Thursday, November 29, 2012

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

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.

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.

Cairns Property Market Month in Review - HTW

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The latest figures on Cairns give the population growth rate at about the 1% mark, which implies that for the first time in many years population growth is coming solely from natural increase (excess of births over deaths) rather than migration. Or in other words, migration has slowed right down, and right now there are just as many people moving out of Cairns as there are moving in. Moreover from a property market perspective the people moving in are likely to be demographically different to the ones moving out – the people moving in are more typically older/empty nester lifestyle migrants with completely different housing needs to the ones moving out, who are more likely to be younger singles/couples/families in search of better employment and income opportunities.

As population growth and the economy have flattened so too have property and development. Apartment construction in particular is at a complete standstill with no new Council building approvals issued for units in the past 12 months. Land development is similarly in the doldrums due to severely depleted residential land demand.

However it is not all doom and gloom - there is light at the end of the tunnel. Even though we’ve been saying for some time that the Cairns market is at the bottom of the cycle and is about to turn, this time we REALLY BELIEVE that the Cairns market has bottomed. Our evidence is that:

• Cairns has been experiencing a good tourist season this year which, together with the start-up of direct air services to China next month, will be game-changers in terms of future economic and market confidence;
• Property is moving again with sales volumes increasing in recent months;
• There is limited new construction meaning that supply will shorten as sales volumes increase;
• The rental market remains tight (current trend vacancy rate around 2.5%) and rents are increasing;
• Prices after inflation are down about 25% on the peak of the market, and interest rates are low and heading lower meaning improved affordability.

Source: Herron Todd White Cairns, The Month in Review - Sept 2012

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

China Boom Good for Far North's Economy

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Hotel Room Rates Set to Rise

Recent media coverage of the room rates for accommodation in the Far North has provided some hope to owners of holiday-style apartments. Throughout the past 3-4 years domestic tourism arrivals figures have maintained trend growth however in order to remain competitive many hotels have been forced to reduce their room rates by considerable amounts ultimately affecting the profitability for apartments and unit owners well-below historical returns. 

With holiday occupancy rates now showing considerable improvement local operators are now able to increase their room rates in order to restore profitability. A recent study suggests that hotel occupancy rates in Far North Queensland should return to pre-GFC levels within the next 3 years with the price of rooms to rise by 4.5 per cent.

Article text: The Deloitte Access Economics Tourism and Hotel Market Outlook released today shows average annual room occupancy rates in the Far North have improved to 58.1 per cent, but are still 5.5 per cent lower than they were five years ago.

The report said the average room rate would rise by 4.5 per cent to reach $132 by the March quarter of 2015, while the revenue per available room would also rise by 9.1 per cent.

"While growth in room rates and yields are expected to be relatively strong over the forecast period, they will remain considerably lower than the levels prevailing in the capital cities and broadly similar to other regional destinations," the report said.

Mercure Cairns Harbourside general manager Shane Edwards said there had been a noticeable increase in visitors since May.

"Occupancy has been quite strong certainly for the last three months and we’re more optimistic than this time last year," he said.

The Far North’s lower room prices will also help increase occupancy.

"Occupancy rates are forecast to reach 66 per cent by the March quarter 2015, driven among other things, by room rates which are considerably below those witnessed in other parts of the nation," the report said.

Mr Edwards agreed, saying room prices were still well below other Australian cities.

"If I look at average rates in 2005 they’re certainly nowhere near what they were back then," he said.

"I think if volume is consistent then rates will slowly start to increase in line with other cities."

The direct flights from China along with November’s solar eclipse have also given hotels confidence they will stay full beyond the traditional high season.

"With the extra people coming in it can only get better and we’re quite excited about it, usually when you see a dip we’re hoping that occupancy levels will stay high," Mr Edwards said.

Tourism Tropical North Queensland chief executive Rob Giason said the past six months have seen good growth and sustained occupancy.

Article posted by The Cairns Post - August 30th 2012

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

China Eastern Airlines to start direct flights to Cairns

Earlier this year I posted an article published by The Age which highlighted the expectation of local tourism business leaders toward China providing the next boost to Far North Queensland's economy. The biggest hurdle to this was cited as the introduction of direct flights from the People's Republic... Now it's official!

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THE number of Chinese tourists travelling to the Far North is expected to soar with the first direct flights from the world's most populated country starting in less than three months.

More than 36,000 Chinese travellers will be able to fly non-stop from Shanghai to Cairns each year on the China Eastern Airlines flights three times a week with services beginning in October.

The flights, which The Cairns Post revealed last week, will inject an estimated $35 million a year into the economy.

Queensland Treasurer Tim Nicholls and Tourism Minister Jann Stuckey will meet China Eastern executives in Shanghai today.

Ms Stuckey will sign a co-operative letter of intent with the carrier’s marketing officer Dong Bo.

Mr Nicholls welcomed the announcement, saying the flights would bring more than 700 Chinese visitors to Cairns each week.

"The number of Chinese visitors to Queensland increased by 16 per cent in the 12 months to March this year, injecting $403 million into the Queensland economy," he said.

"Tourism is one of the four pillars of the Queensland economy and aviation access is vital to helping us achieve our target of doubling overnight visitor expenditure to $30 billion by 2020."

Ms Stuckey said the deal was struck using the Newman Government’s $8 million Attracting Aviation Investment Fund.

"Today’s announcement is great news, not only for our north Queensland tourism operators who did it tough after cyclone Yasi, but also for the whole state," she said.

"These flights will reduce the time Chinese tourists have to spend in transit, enabling them to spend more time and money visiting the world-renowned Great Barrier Reef."

"China Eastern is one of China’s largest and most valued airlines and we welcome them to Queensland with open arms."

Mr Dong said the new route offered mainland Chinese new access to Australia.

"Cairns as a major city in north Queensland serves as a gateway to numerous tourist sites throughout the country," he said.

Cairns Airport chief executive officer Kevin Brown said the services would have an "enormous impact" on tourism.

"After several years of successfully operating Chinese New Year charter flights to Cairns from Shanghai, it’s very exciting that China Eastern is now introducing a scheduled service," he said.

"It will help strengthen Cairns’ position as the Asian gateway to Australia."

China is the region’s fastest growing source of holidaymakers, overtaking Japan in the year to March 31.

Article printed by The Cairns Post - 20th July 2012
Writer: Nick Dalton

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.