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.

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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.

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.

Cairns Post: Bungalow Tops List for Rental Returns

BUNGALOW has topped the list for the highest rental yields for units in the Far North.

According to RP Data figures, released this month, Bungalow in Cairns, recorded a 7.7 per cent gross rental yield in the past year.

Properties at Manoora and Cooktown outperformed the rest in the housing market revealing an average rental yield of 6.2 per cent.

LJ Hooker Edge Hill property manager Amanda Boccalatte said she was initially surprised Bungalow recorded the highest return but narrowed it down to the large number of units in the suburb.

"Sale prices are low but the rents haven't dropped," she said.

"You could buy a unit (at Bungalow) in 1998 for low to mid-$200,000s and you would be getting $220-$240 in rent (weekly)."

Ms Boccalatte said unit sale prices were now $50,000 to $100,000 less but rents were still the same.

With two-bedroom units in demand, Ms Boccalatte believed it was a good time for investors to enter the market.
"It's a great time to invest, prices are low and you are getting a great return," she said.

"Body corporate fees are high but really when you look at the rental return (7.7 per cent), you wouldn't have seen that for the last 10 years."

But Kylie Fullerton, of Taylor Jones Property, said it may not be the best time to rush out to buy a property based on positive rental yields.

While the rental market appeared to be tightening, she was wary to generalise because of a lack of consistency around statistics.

"The rental pool is shrinking," she said.

Ms Fullerton said while interest rates and property prices remained low, investors needed to factor in high insurance premiums and body corporate fees.

"There is a demand for four-bedroom houses with two bathrooms (and) we are finding people are wanting relatively new houses," she said.

Indicative gross rental yields are based on the average annual rent divided by the median sale price in each suburb in the past year.

THE TOP 10 RENTAL YIELDS

UNITS
Bungalow - 7.7 per cent
Woree - 7.2 per cent
Parramatta Park - 7.2 per cent
Port Douglas - 7.1 per cent
Edge Hill - 6.9 per cent
Yorkeys Knob - 6.6 per cent
Holloways Beach - 6.6 per cent
Mooroobool - 6.5 per cent
Westcourt - 6.5 per cent
Manoora - 6.4 per cent

HOUSES
Manoora - 6.2 per cent
Cooktown - 6.2 per cent
Caravonica - 6.1 per cent
Manunda - 5.9 per cent
East Innisfail - 5.9 per cent
Babinda - 5.8 per cent
Bungalow - 5.8 per cent
Cardwell - 5.7 per cent
Craiglie - 5.7 per cent
Westcourt - 5.6 per cent

Article printed by The Cairns Post - 24th July 2012
Writer: Bianca Keegan

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

Cairns Post - Rental Squeeze Hits the Pocket

SECURING a rental property in Cairns is becoming even more competitive, the latest real estate industry figures say.

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The Real Estate Institute of Queensland released the June quarter residential rental vacancy yesterday showing Cairns rentals are still in high demand.

The vacancy rate is 1.9 percent, dropping from 2.5 percent in the March quarter, the report found.

REIQ chief executive Anton Kardash said property managers were reporting tighter rental conditions because of low investor activity.

He said rental stock was also depleted because of investors selling their properties and landlords choosing to live in their own investment properties.

"The first three months of the year are generally the busiest in the Queensland rental cycle so we see vacancy rates particularly low during this period of time," he said.

Local real estate agent Debbie Aldred said rental prices would continue to rise because of increased demand.

"The unit vacancy rate is dropping quite rapidly," she said.

"The problem is there has been no building in the last five years and there are still plenty of people coming into town."

"It's quite a problem, we desperately need more houses to rent," she said.

Ms Aldred said rental arrears has also increased with some tenants unable to afford the increases.

Article printed by The Cairns Post - 21st July 2012
Writer: Bianca Keegan

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

Cairns Real Estate Market 'Month in Review'

Herron Todd White provide their monthly review of the Cairns marketplace:

The conventional wisdom is that being a transient city, Cairns has a high proportion of renters in its population, with the counterpart that it has a lower than average incidence of owner-occupiers in its property base compared to other Australian cities. Nevertheless with the slow state of the present market, in particular the investor market, it seems to be intending owner-occupiers that are sustaining the majority of current property market activity.

Owner-occupiers appear to buy across the entire spectrum of property types, whether that be houses, apartments or acreage properties. While represented across the entire spectrum of locations, owner-occupiers appear to show a higher degree of concentration either in the older established suburbs or in areas such as Redlynch.

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"we are seeing some former rental properties being snapped up for owner occupation while the price is right... This is further reducing the supply of rental properties in an already tight rental market..."

With Cairns being a buyers market, we are seeing some former rental properties being snapped up for owner occupation while the price is right. This is further reducing the supply of rental properties in an already tight rental market, and may have the spiralling effect of inducing even more people to buy rather than rent due to the looming rental shortage. However there is also a degree of buyer hesitancy in the apartment market due to the hike in ownership costs arising from higher strata building insurance / body corporate charges.

Source: Herron Todd White 'The Month in Review' June 2012

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

State-Wide Market Analysis Provided by the REIQ

The Real Estate Institute of Queensland (REIQ) have provided a state-wide analysis of property market trends with the release of their quarterly Market Monitor report. 

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The report analyses median house, unit and land price movements over the January-March 2012 period and is arguably the most trusted source of such data within the Queensland real estate industry.

Very positive news has resulted from the REIQ's figures showing that the Queensland property market has turned around and posted positive results for the first time in 18 months. The report finds that house prices across the majority of Queensland have increased with sales numbers also up – in some cases significantly.

Three months ago when the REIQ analysed the December quarter data it seemed to indicate the bottom of the market had been reached because prices were stabilising.
The REIQ predicted at the time that the March quarter data would be even more positive and house prices across the state have duly started to increase.

Property prices have grown in most areas and some regions have also experienced substantial increases in sales activity, which is a hugely welcome turnaround.

And while the March quarter figures contain plenty of good news, perhaps the best piece of news is some very healthy results in Queensland’s tourism centres, which have struggled more than most over recent years.

More importantly, the report also provides an in-depth review of all major regional areas throughout the state including Cairns and I will post this analysis for your information shortly. Stay tuned!

Blog post article information sourced from the REIQ Market Monitor Report - March Quarter 2012

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

Cairns Post: Rental Demand On the Rise

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

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

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

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

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

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

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

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

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

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

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

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

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

Cairns Property Market Review by Herron Todd White

A current review of Cairns' property market conditions provided by Herron Todd White in their national 'Month in Review' publication March 2012:

Investors are sadly lacking in the Cairns residential property market at present. However with the market presently showing downward pressure on property prices and upward pressure on rents, rental propositions to investors in Cairns ought to be becoming increasingly attractive.

“Tight rental market conditions, rising rents and ‘affordable’ property prices are providing strong fundamentals for investors. Once the word gets around, please form an orderly queue.”

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In December 2010 the median house price in Cairns was $368,000 and the median weekly house rent $320. Twelve months on, in December 2011, the median house price in Cairns has headed south, to $332,000, while the median weekly house rent has headed north, to $330. Rental yields have thus improved significantly.

Vacancy rates for rental property have reduced considerably over the past twelve months, with the market now sitting at the lower end of the ‘balanced market’ range normally accepted as a 3% to 5% vacancy rate. Houses for rent are in short supply, with a vacancy rate of 2.1% during January 2012, while units recorded a trend vacancy rate of 4%. The overall market vacancy rate stood at 3.1%.

The rental market is expected to come under further pressure during 2012 because of on-going demand and the lack of new private rental housing construction. Tight rental market conditions, rising rents and ‘affordable’ property prices are providing strong fundamentals for investors. Once the word gets around, please form an orderly queue.

View the full 'Month in Review' publication 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.

Cairns Beaches Video Market Update

Short video update on current market activity experienced in Cairns northern beaches.
Presented by Peter Musso - Ray White Cairns Beaches - 0425 713 700
Location: Coral Sands Resort - Trinity Beach QLD 4879

Subtitle: Hi everyone, welcome to my first video update for the year, we've been very busy so I'm happy to be able to report on healthy market activity throughout January and February. Buyer activity remains strong following on from the spike in activity that we saw late in 2011, typical for that time of year but good nonetheless that it has remained.

A change that we have noticed is fewer properties coming onto the market which will help to bridge the gap between supply and demand that we have seen in recent times. The majority of buyer enquiry is circulated around the affordable housing segment, between the $250,000 and $350,000 level, with demand for units slightly less however good for those that are priced to represent clear value within the marketplace and of course auction properties with no advertised price.

As predicted we are continuing to see strengthening rental market conditions with tightening vacancies and increasing rents, something I heard a buyer say last week was "with rents expected to increase further why shouldn't I buy?" This was music to my ears as it is the message that we have been trying to get across to the marketplace for quite a while now. Hopefully we see and continual shift in buyer perception in that direction.

If you would like a quick discussion regarding local market activity feel free to call me directly at any time, have a great day and thank you for watching.

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.

No End in Sight for Tightening Rental Home Market

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As well predicted, the availability of rental homes throughout the region is becoming an increasing concern for prospective tenants. The Cairns Post today reported another decrease in the vacancy rate with an increase in median rents and the key economic indicators are clearly telling us that this trend will continue throughout 2012.

Building approvals in the construction industry remain at an alarmingly low rate; certainly not enough to accommodate the continually growing local population. Almost every day it seems as though I am hearing from prospective tenants who are finding it increasingly difficult to find suitable rental homes.

One must ask with median rents expected to rise substantially throughout the year and fewer rental homes available; will prospective tenants shift their sights toward the deflated sales environment currently offering an attractively wide range of opportunity?

Cairns Rental Houses in High Demand

The Cairns Weekend Post - 11th February 2012

PEOPLE hunting for a house to rent could be facing longer waits as vacancy rates in Cairns continue to tighten.

The latest Real Estate Institute of Queensland report says Cairns’ vacancy rate dropped from 3.1 per cent in the September quarter to 2.8 per cent in the December quarter.
The median weekly rents for two bedroom units and three bedroom houses recorded an increase of $5 or $10 over the quarter.

Despite a "slight" unit oversupply, demand for houses is strong with many agents beginning to exceed supply.

TNQ Rentals owner Karin Riley said her agency only had two vacant houses out of more than 450 properties on the books.

"Houses are doing extremely well and tenants seem to prefer a house over a unit at the moment," Ms Riley told The Weekend Post.

"The unit market is suffering a little but in saying that if the property is well presented, fresh and modern, they’re attracting people."

The latest Australian Bureau of Statistics housing finance figures found the number of investors in Queensland increased by more than 16 per cent over the month but the report could not provide a regional breakdown.

This return to investor activity, while still slightly below average, is also being driven by the lower interest rate environment that is now in play, REIQ CEO Anton Kardash said.

"After being in hibernation for most of 2011, investors are starting to return to the market with REIQ accredited agencies also reporting a more buoyant mood since about November," he said.

"These tentative signs of recovery, however, can only be sustained if confidence levels continue to improve. The key to this is having an interest rate regime that reflects and supports the economic reality of the majority of businesses in Australia."

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.

Higher Rents Loom as Construction Remains Slow

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

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

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

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

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

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

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

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

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

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

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

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


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

Cairns Rental Market Month in Review

Prevailing rental yields in Cairns are typified by the following examples of (hypothetical) investor purchases:

• New suburban house at White Rock, 10 km from city centre, four bedrooms, two bathrooms – purchase price $340,000 – likely rent $330 to $340 per week.
  
• Established house at Trinity Beach, 20 km from city centre, three bedrooms, two bathrooms – purchase price $380,000 – likely rent $370 to $380 per week.
• Older unit (20 to 25 years old) at Manoora, 5 km from city centre, two bedrooms, one bathroom – purchase price $165,000 – likely rent $180 to $200 per week.
• New CBD fringe high rise unit, two bedrooms, two bathrooms – purchase price $400,000 – likely rent $350 to $375 per week.

Most residential properties are achieving gross rental returns in the range of 4.5% to 5.5%. Across the entire rental market the median rent in Cairns is now sitting at $330 per week for houses and $245 per week for units.

There has been minimal change in rent levels over the past twelve months. However a major issue affecting rental yields in Cairns, particularly for units, is burgeoning body corporate fees and sky-rocketing strata building insurance costs.

As a typical example, we are aware of an 18-unit complex in Cairns North where the strata building insurance premium was $8,900 two years ago, rising to $14,900 last year and quoted at $52,000 for this year. With insurance costs alone in this complex growing to an average of $55 per unit per week, or nearly 20% of their typical rental amount of $280/week, something will have to give to preserve a decent net rental yield to investors.

Another factor affecting the rental market outlook in Cairns is a progressively tightening vacancy rate for rental property combined with the almost complete absence of new rental property construction. According to our latest Rent Roll Survey, vacancy rates in July 2011 stand (in year round average trend terms) at 2.9% for houses, 3.4% for units and 3.2% overall. As vacancy rates tighten further, we expect upwards pressure on rents as a result of demand factors as well as the rapidly increasing cost base of rental property ownership.

Information sourced from Herron Todd White's 'The Month In Review' report, September 2011 - Download full report

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

The Cairns Weekend Post Articles

Get ready for the big rental squeeze...

Cairns will be on the brink of a rental crisis before the year is out if the city’s vacancy rate continues to tumble.

If investors do not flock back to Cairns in the next six months, agents say the tight rental market could force tenants to buy, which would push house prices up again.

Vacancy rates across the city’s rental houses and units continue to tighten.

The latest Herron Todd White Cairns Watch report found the April trend vacancy rate for houses had dropped to 2.4 per cent, while units recorded a trend vacancy rate of 3.9 per cent and the market overall 3.1 per cent.

Cairns Watch analyst Rick Carr said units were sitting above the “stress” level, but the availability of houses was tightening which could see a “blowout” in rental rates.

“We expect the rental market to keep tightening during 2011 due to ongoing population growth and the lack of new rental property construction,” Mr Carr said. “If the trend continues like it has in the past six months then by the end of the year it will be a tight rental market.’’

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Time now right for property market revival...

Though the rental housing squeeze is not all bad news. While it makes it hard for those looking to lease reasonably priced properties it will force many to bite the bullet and buy.

They have a good incentive to plunge into the property market too with the State Budget announcing a $140 million program with $10,000 grants for owner-occupiers buying properties for less than $600,000, aimed at stimulating building activity and supporting construction jobs.

The rental vacancy crisis will also push up prices which have been at rock bottom for a long time.

Now is the time for canny investors to return to the market and buy homes, apartments or units for rent, with good returns and good value, before any probable price rises later in the year as rental stocks dwindle and before any new housing construction begins.

The low vacancy rate also could provide the trigger for new residential developments if the banks are willing to lend and developers are willing to take the risk.

While the details of what projects will go ahead under the Cairns Regional Council’s $4 million infrastructure discount scheme have yet to be revealed, it is believed some will boost housing stocks.

The only bugbear is the massive hike in stamp duty announced in the Budget.

Stamp duty will result in the fee climbing from $3000 to $8325 for a $300,000 home.

The changes mean buyers will pay the same rate for their family home as they would for an investment property.

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Time for action to start on $428 million worth of projects in Cairns...

WORK on three of the Far North’s biggest and most controversial projects will start within 10 months as the State Government yesterday vowed to turn promises into action.

Two Cabinet ministers will base their offices in Cairns from June 27 as community anger rises over the lack of action on major government projects in the Far North.

Main Roads Minister Craig Wallace and Transport Minister Annastacia Palaszczuk will oversee the progress of two of the region’s biggest projects with the $150 million Ray Jones Drive upgrade and the $38 million Lake St and City Place overhaul.

The Weekend Post can reveal both projects are slated to be completed by 2013, with $41 million worth of work on Ray Jones Drive allocated for the first stage of the upgrade this year, creating hundreds of jobs over the next two years. The start of work on the key projects comes less than a year before the state election.

Meanwhile, Cairns Regional Council expects the first sod to be turned on the Cairns Entertainment Precinct after the 2012 wet season.

After another round of community consultation in July and a public exhibition period for two concept designs, a development application to start work on the project will be lodged.

Mr Wallace said the Bligh Government was fully aware of the Far North’s dire economic climate and denied the projects had been delayed.

“We’ve got our final two bidders on the design work for Ray Jones Drive, we’ll make a decision and announce the winning design in September, so work is expected to start prior to Christmas and finished by the end of 2013,” he said.

“This year we’ve allocated $41 million for the project and we’ve started relocating our Roadtek depot to Cairns.

“This road will cater for Cairns for the next 30 to 50 years so we’ve got to do this properly, and as the funds have come through from the Federal Government we’ve spent them.”
Homes may have to be resumed by the State Government in the second stage of the upgrade, Mr Wallace said.

Ms Palaszczuk said the first $12 million of the $38 million City Place package was included in
Tuesday’s State Budget for the next financial year to ensure the project could start as soon as possible.

“Work will include designing and constructing a pedestrian and cyclist friendly bus interchange, where buses can move through City Place, linking services north to south and vice versa, as well as bus layover facilities away from City Place,” she said.

A council spokesperson said the “architectural rainforest” concept design for the entertainment precinct had received almost unanimous support as the preferred option.

“After the July community consultations there will be an exhibition period for the two concept designs and information will be presented to the State Government with a full evaluation of each design option from a technical, operational and cost perspective,” the spokesperson said.

“After the exhibition period a development application will be lodged and preparation of detailed and final designs will begin.

“In order to acquit the $40 million Commonwealth grant within the stipulated timeframe, it is hoped that works on the project will begin after the wet season in 2012.”

Cairns Chamber of Commerce president Anthony Mirotsos said the community and business leaders must keep the pressure on to ensure the projects were delivered in promised timeframes.

“The southeast corner and Townsville have had their fair share of funding, but even though our economy is in a worse state than other areas we still haven’t had our fair share of investment,” he said.“

Articles published in The Cairns Weekend Post 18th June 2011

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

CAIRNS POST: RENTALS LIFT FOR REGION

CAIRNS real estate agents hope the city’s rental vacancy rate will drop lower than 4.2 per cent in coming months pushing investors back into the property market as the region comes into its peak season.

Real Estate Institute of Queensland Cairns zone chairman Rick Szelpuk said rental vacancy figures for February were the lowest they had been in a long time after hovering between 5 to 6 per cent.

“Cairns is doing extremely well if you look at the February figures – they say houses in the Cairns central area, which includes Cairns North, Edge Hill and those suburbs, was at 3 per cent, at the northern beaches it was 2.5 per cent and the southern corridor was 3 per cent and if you put them all together there is an overall 2.8 per cent vacancy in the housing market.

“Units were slightly higher. In the Cairns central area the vacancy rate was 5.6 per cent, northern beaches 6.2 per cent and the southern corridor 2 per cent with an overall vacancy for units at 5.6 percent.

“Overall, that’s a 4.3 per cent rental vacancy rate for Cairns and that’s a pretty damn good
number considering what we’ve been through in recent times.

“As we head into our busiest period of the year, it’s a strong confidence booster as the vacancy rate can only go down and we should see investors going ahead and buying again.”

LJ Hooker Edge Hill associate director Amanda Boccalatte says houses have become more popular than units with people taking advantage of cheaper rents.

“Rent is certainly very affordable and many tenants have upgraded from a unit or townhouse to a house as they are getting more value for their money,” she said.

“One bedroom units aren’t as popular as they used too be because the prices have dropped, therefore, houses are more affordable.

“We only have 37 properties vacant and it’s the lowest it has dropped since January when we had 60 properties availableble so it’s a very positive sign.”

LJ Hooker Port Douglas director licensee Michael Samson said the seaside town had really felt the pinch in the global financial crisis.

“It’s getting better for us ass the wider area outside Port Douglas, which includess Mossman, has a vacancy rate of 10 to 13 per cent while Port Douglas is well under 10 per cent,” he said. “We’ve got people looking for houses so that’s a good sign for us. However, units aren’t as popular.”

Source: The Weekend Post 26th March 2011

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

Investor Optimism Growing

An increase in university enrolments and speculation over Cairns' role in the Papua New Guinean gas project is fuelling new optimism in the housing market.

While the Real Estate Institute of Queensland's March 2010 quarter report showed the median house price in Cairns fell by 0.7 per cent to $370,000, there was cause for optimism, REIQ Cairns chairman Rick Szelpuk said.

"A lot of people will move to Cairns looking to rent property initially. Also, with the Australian dollar getting more realistic, it allows opportunity for tourists to visit and Cairns can benefit from this."

Mr Szelpuk said the 30 per cent increase in mid-year enrolments at James Cook University was another positive sign. He said it was a good time for investors to buy property to rent out to university students.

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

Steady Activity Expected in Local Property Markets

New figures released from Herron Todd White indicate that rents are likely to remain stable throughout the remainder of 2010.

Cairns overall rental vacancy rate now stands at 4.6%; about double that of a two years ago before the global financial crisis.

Also in HTW's CairnsWatch report, residential property sales were reported to have slowed as the last of the effects of government first home buyer grants wore off.

"While there is a lot more confidence in the market than what there was 18 months ago, the difference is that interest rates are now in a rising cycle,’’ he said.

"For this reason we expect the Cairns real estate market to only build slowly in activity during 2010.’’

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