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.

Multiple Offers on a Property

This isn't exactly a topic specific to real estate in Cairns and Far North Queensland however it is something which I find myself discussing regularly with people; multiple offers on a property.

In the event where a property is listed for sale by private treaty (with an asking price) and more than one buyer expresses interest in making an offer to purchase, each of these buyers will be advised that there will be another offer in consideration and that the offer with the most attractive price and terms to the seller will be accepted.

To maintain fairness each of these buyers cannot know the price or terms of the other offers and must simply make their best offer in hope that it is accepted over all others.

This is at odds with a property which is listed for sale by auction whereby all bids (offers) are made in a public forum and each buyer is aware of exactly how much more they will need to offer in order to purchase the property. This method of sale through the bidding process will almost always produce the highest possible purchase price.

The Real Estate Institute of Queensland (REIQ) recently released a statement discussing this topic and also clarifying the legal obligations of the real estate agent during the multiple offer process:

The REIQ often receives queries from consumers about multiple offers on a property. A multiple offer occurs when more than one prospective buyer makes an offer on a property by submitting a Contract of Sale.

Multiple offers often happen in a seller’s market when competition for residential property is greatest and there are more buyers than there are properties for sale. However, it can occur in any market and especially for properties within an affordable price range.

Occasionally prospective buyers have alleged that agents tell them there is another offer on the property in order to secure a higher price for the seller, when in fact there is no competing offer.

There are heavy penalties for agents who mislead or deceive buyers by telling them there are competing offers when there are not.

When a seller is to be presented with multiple offers, a prudent agent will inform prospective buyers of that fact in writing and obtain a written acknowledgement. This gives potential buyers an opportunity to submit an offer if they have not already done so, or to revise an existing offer that has not yet been accepted by the seller.

Real estate agents have an obligation under the Property Agents and Motor Dealers Act to submit all offers that comply with the seller’s instructions to the agent.

Exceptions occur when, for example, the seller instructs their agent not to submit offers under a certain dollar figure.

Agents also have a statutory obligation to attempt to get the highest possible price for the seller. The law further requires that agents be fair to buyers.

Buyers should also be aware that sellers will examine all the terms and conditions of each offer before deciding to accept or reject any particular offer. The conditions can make certain offers more attractive for reasons other than the proposed price alone.

Some sellers may be prepared to accept a lower price if the offer is unconditional rather than take the risk that a higher offer may not proceed to settlement, because of the special conditions required by a buyer.

Statement posted by the REIQ on the 13th of August 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 Region Market Analysis Provided by the REIQ

Here it is! An analysis of the Cairns marketplace for the January-March period of 2012 provided by the Real Estate Institute of Queensland (REIQ). News which is far and beyond what we could have hoped for; we were the second best performer for house price growth in the state!

House and unit markets
The second best performer for house price growth over the March quarter was Cairns, which recorded median growth of 4.5 per cent to $350,000. Local agents say the region now represents excellent value with demand increasing, especially in the upper end of the market.

Local agents say the market was finally starting to see the re-emergence of confident buyers – however over the March quarter, it was the up-graders at the prestige end of the market that were the most dominant, with sales in the $500,000-plus bracket up.

Access to finance from banks is behind the shift, with banks appearing to prefer clients with greater equity and serviceability, while loan applications at the affordable end are falling over on bank valuations.

As a result, first home buyers are struggling to get their foot in the door. And while investors are only just re-emerging, it is a marked improvement from 12 months ago when there was none at all.

Agents expect property prices to remain stable for the foreseeable future, while sales activity should gradually return to healthier levels.

A more favourable Australian dollar is also providing further stimulus for the Cairns tourism industry and, in turn, the economy and property markets.

Although a strong result for the house market was recorded over the quarter, Cairns’ unit market continues to struggle, with sales down 30 per cent. Its median unit and townhouse price decreased 1.2 per cent to $212,500 over the period.

Comments from various regional zone chairs, Cairns included, say that units are proving difficult to sell, as buyers are put off by the increased costs associated with owning a unit, such as body corporate fees, insurance levies and council rates. As such, buyers end up seeing more value in buying a house, with the ongoing servicing costs equalling that of a unit.

Vacant land market
Over the quarter, the Cairns vacant land market recorded a slight slowdown in sales activity, with fewer land listings coming onto the market.

Whilst there are few listings available, local agents report reasonable buyer enquiry levels, however affordable stock is becoming scarcer. As a result, the overall median for the region increased 6.7 per cent to $160,000 as sales numbers dropped off at Edmonton as well as a slight increase at comparatively more expensive Craiglie.

Rental market
The Cairns rental market has also improved markedly with it recording a vacancy rate of 2.5 per cent as at the end of March compared to 3.8 per cent at the same period last year. Agents from REIQ accredited agencies report a recovery in the tourism industry which is improving employment opportunities and therefore demand for rental property.

“With low investor activity combined with first home buyers struggling to enter into home ownership, the Cairns rental market continues to tighten.”

With low investor activity combined with first home buyers struggling to enter into home ownership, the Cairns rental market continues to tighten. Demand for houses is strong, while less investor activity in the unit market is making supply levels tighter.

Median rent for a three-bedroom house increased $10 per week to $320 between March last year and March this year. The median rent for a two-bedroom unit was steady at $250 over the same period.

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 Real Estate Market Month in Review

Herron Todd White provide their monthly analysis of the Cairns' marketplace:

The Cairns market has a number of elements which, while generally moving in sympathy with each other over the longer term, do have their individual cycles and influences.

As a sweeping generalisation, the Northern Beaches area of Cairns performs most strongly when population migration is it its strongest. This area is a favoured location for southern lifestyle migration. For this reason, the Northern Beaches tends to support an older population demographic than the rest of Cairns, particularly ‘Empty Nesters’ as a result this area sees higher property values than the Cairns average. Interestingly the strongest values on the  Northern Beaches are in the outermost suburb of Palm Cove, indicative of the improving amenity appeal of the beaches the further out from the city.

...Interestingly the strongest values on the Northern Beaches are in the outermost suburb of Palm Cove, indicative of the improving amenity appeal of the beaches...

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Near city suburbs of Cairns such as Cairns North, Edge Hill, Whitfield and Freshwater, are typically regarded as ‘lead indicator’ suburbs of Cairns. These suburbs show a higher degree of immunity to downturns in the Cairns market and conversely, perform strongly during times of strong economic growth. Popular mid-market suburbs such as Bayview Heights, Earlville, Mooroobool, Kanimbla, Brinsmead and Redlynch, are a second tier indicator with similar characteristics.

The rapidly expanding southern suburbs of Cairns are more of a locals market and investor territory, made up of typically younger demographic and a higher proportion of young families. Property-wise, these areas tend to be the swing areas of Cairns, with property price cycles more exacerbated than the Cairns average.

View the full National report 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.

The Future for FNQ Holiday Accommodation

Holiday style properties have historically been most attractive to lifestyle investors in search of their own property which they can use themselves and lease out in the meantime in order to cover costs, with the added benefit of long-term capital growth.

Unfortunately, a deflated international tourism market in the far north experienced throughout the past 3 years has diminished the ability of these holiday properties to cover those ongoing costs. Many holiday properties only barely manage to return enough each year to cover body corporate levies, council rates and other ongoing costs leaving owners with very little by way of net investment return.

The majority of investors who are purchasing holiday styles properties within the region are now purchasing with a long-term strategy in place. They focus on the high level of affordability of such properties relative to the overall market cycle and project for future earnings to be achieved when the tourism industry eventually returns to strength.

Without a long-term perspective it can be very difficult for purchasers to see value in these properties within current local tourism conditions. However, the latest Deloitte Access Economics’ Tourism and Hotel Market Outlook has brought some welcomed news stating that the accommodation industry in Cairns should start seeing gradual improvements throughout 2012 and projecting sustained growth up to 2014.

“The Tropical North Queensland (TNQ) region has faced challenging conditions in recent times, losing market share, particularly as the Japanese source market has declined. Occupancy rates and RevPAR (average yield per room) have fallen sharply since the onset of the GFC.

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However, our forecasts suggest a turnaround in performance for the TNQ hotel market, with occupancy rates to be flat in the first half of 2012, before increasing six percentage points – from 57% to 63% – by end-2014.

RevPAR is forecast to increase by 27% over the period 2011 – 14, however, again, this is off a relatively low base. Indeed, by the end of 2014 RevPAR for TNQ region is forecast at just $86, which is the lowest yield among the regions reported here.”

Download the full report here

It is expected that tourism industry growth will be fuelled by the emerging Asian economies of China and India. These markets also often prefer nature-based tourism whereby Far North Queensland is positioned to take advantage.

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.

Cairns Property Information Seminar

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This Thursday (23rd February) Ray White Cairns Beaches & Ray White Smithfield will be hosting an information seminar for buyers and sellers of local real estate.

The event will feature a number of guest speakers on the current state of the market and discuss the associated opportunities available. Whether considering buying or selling locally it is sure to be an event not to be missed.

Location: Paradise Palms Country Club, Kewarra Beach
Time: 6:30pm Start - 8:30pm Finish
Contact: 07 4057 9111 or sales.cairnsbeaches@raywhite.com *Booking not necessary however recommended

North Point Estate Sold to Local Developer

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

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

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

Smithfield North Point Sale Coup

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

View the Cairns Post article online here

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

Cairns Property Market - HTW Month in Review

Herron Todd White Cairns provide their analysis of current property market conditions in the company's national 'Month in Review' publication. Minimal change in general market conditions observed however positive outlook for rentals reaffirmed.

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THE Cairns residential property market remains steadfastly at the bottom of the property market cycle, and while there is light at the end of the tunnel, we are not expecting big things to happen in the market during 2012.

Conditions in the local economy are slowing getting better, but it is taking a long time for these to filter into improvements in consumer confidence which is needed to resurrect the local property market. The building industry also remains at a low ebb, with a dearth of new housing construction projects inside Cairns, particularly of units.

However one comfort factor is that vacancy rates for rental property have tightened further over the past twelve months. according to our Herron Todd White 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, while those for units have come down from 4.8% to 4.1% over the same period. In addition the December quarter saw average rents show an increase, rising by about $7 per week compared to September.

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Tight rental market conditions, rising rents and affordable property prices will provide the pre-conditions for the market to enter modest recovery mode during the next twelve months.

View the national report in full here

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

Ray White Smithfield - New Cairns Beaches Agency

An agency-specific item however important news to local buyers and sellers of real estate nonetheless. Ray White Cairns Beaches will soon be opening a new ‘sister’ office at Smithfield, to be named Ray White Smithfield.

Centrally located within Cairns' northern beach suburbs close to the Smithfield Shopping Centre, the office will receive high exposure in a position on the Captain Cook Highway.

Personally I am looking forward to further expanding our reach to buyers within the northern Cairns region and beyond but also providing sellers with a new and central port on the beaches for all real estate needs as a member of the largest real estate network in Australasia.

It is an exciting time of growth for our business and I cannot help getting enthusiastic about it all - feel free to give me a call at any time, even if you might simply appreciate a quick chat regarding local market activity.

Peter

0425 713 700
peter.musso@raywhite.com
www.petermusso.raywhite.com

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

The Best Performing Suburbs in Cairns

Article printed in The Cairns Weekend Post Saturday 15th October 2011

The data's in on our best performing areas: Cairns real estate agents see a glimmer of hope that the property market slump could be turning a corner. 

Latest RP Data figures offer pockets of optimism among the backdrop of doom and gloom. The numbers don’t lie.

Sales of houses in Mooroobool have seen a 21 per cent increase in median price for the quarter to July 2011. Another standout suburb, Trinity Beach, has seen the median price for a house settle at $375,000 for the same time period. And fashionable Edge Hill continues to perform well with a positive 3.6 per cent quarterly change, taking its median price to $445,000.

Ray White Cairns Beaches principal Paul Stirling, who like many Cairns agents, supplies his sales figures to RP Data – the real estate industry watermark – said an increase in strong sale figures, compared with this time last year, provided a confident platform for the industry.

"Our volume of sales per month has increased compared to the first six months of the year," Mr Stirling told The Weekend Post.

"We were averaging 13 sales a month and now we’re averaging 16 sales a month and 50 per cent of our sales market has been shared at Trinity Beach. Our core suburbs at the moment are, obviously Trinity Beach, Kewarra and Clifton beaches, Palm Cove, Trinity Park and Smithfield.

"Rents are rising. Just this week we had a five-bedroom house at Kewarra Beach, which vacated and was renting for $440 a week, and we’ve since got new tenants in and they’re paying $460 a week. So we’re seeing a $20 rise in some rental properties.

"With rents rising, this is stabilising the market and it’s having a positive effect on house values.

"We’re getting a large number of inquiries from the medical profession coming through as the Cairns Base Hospital starts to fill more and more positions in line with the expansion. We’re also getting a lot of inquiries from the LNG project in PNG and a lot of these people are purchasing.

"I strongly believe we’ll definitely be over the worst, if we haven’t already passed it now, by this time next year. I can see a strong future ahead of us in the next 12 months, it’s certainly going to be a lot better."

Mr Stirling said he wasn’t surprised to discover the "much sought after" Trinity Beach was one of the top performing suburbs with 89 houses sold in 12 months to July 2011.

"Trinity Beach also includes the Bluewater precinct, which is offering great house and land packages, but the general Trinity Beach area is a popular well-serviced area, which makes it extremely appealing to the family market," he said.

Cairns Property Office principal Greg Moule said "attractive prices" were drawing buyers to city fringe suburbs such as Mooroobool and Brinsmead.

"There is no doubt that there’s attractive buying out there and we’ve seen houses in the Mooroobool and Manunda areas selling in the high 200s," he said.

"They may be old but because it’s so close to the city, and a lot of families are now down to one car and they want to save on as much as they can in tough times, these areas make very attractive buying."

RP Data is the No. 1 provider of property information and analytics in Australia. Cairns real estate agents are not obligated to contribute their sales figures to RP Data.

View article source here

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 Real Estate Market Month in Review

Summary by Herron Todd White valuers in Cairns - September 2011.

The Cairns residential property market is still at the bottom of the property cycle and it is still very much a buyer’s market. Property demand from investors and first home buyers remains at a low level and the market for low-end housing is slow. Demand for better quality houses and units in good locations remains solid, largely sustained on the basis of the trade up buyer segment.

There are two types of trade up buyer - existing locals trading up (or down or sideways) in response to changing circumstances and/or preferences, and people relocating to Cairns.

People relocating to Cairns tend to fall into two classes - the lifestyle and the economic migrants. With the slowdown in the Cairns economy, the economic migration component, consisting largely of young singles or young couples or young families moving to Cairns for employment reasons, has diminished. However Cairns still appears to be attracting its fair share of lifestyle migrants, albeit at a slower rate than before. This segment consists typically of the pre-retirement empty nester demographic, looking for a nice place to live but with opportunities for full or part time work if required. Indeed, cashed up lifestyle migrants who have sold up in Sydney or Melbourne to move to Cairns are like gold in the current market environment.

Lifestyle migrants are demanding a variety of accommodation styles, some buying up big as if expecting to be constantly descended upon by the friends and relatives they have left behind, while others are seeking well located unit accommodation with good amenities. The northern beaches are often a preferred destination.

Locals are also active in the trade up market, but the catch with this segment is selling their existing home. We often hear of sales that fall through because buyers are unable to sell their existing house in the presently slow market environment.

Peter Musso - Ray White Cairns Beaches -Real estate agent selling 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

REIQ Cairns Quarterly Real Estate Market Review

House & Unit Markets

The median house price in Cairns dropped 5.6 per cent to $346,000 over the June quarter however over the year ending June the median house price recorded a 0 per cent change.

According to local agents, the June quarter continued to be impacted by low consumer confidence which was compounded by the poor tourism sector and the high Australian dollar.

The announcement that the principal place of residence concession on stamp duty would be removed from 1 August had also not stimulated the market in any meaningful way before that date.

Agents say the majority of people are just not in a position to buy because either they can’t secure finance; they aren’t confident about their jobs or the economy; or they would have to take too much of a financial hit if they sold their existing property now to buy something else.

They say confidence levels need to drastically improve and the Aussie dollar needs to stabilise before the market picks up in any meaningful way in Cairns.

Over the year ending June, Freshwater recorded median house price growth of 13.5 per cent to $499,500, but this was partly due to the varying quality of stock sold over the period.

Nestled between rolling hills, a national park and a conservation park, Freshwater is a quiet, leafy suburb, which is popular with families.

The area is well serviced by transport infrastructure – Cairns Airport is only 5km away and Freshwater Connection train station, which ferries tourists along the Kuranda Scenic Railway, is centrally located.

The median unit and townhouse price in Cairns decreased 2.4 per cent to $225,000 over the June quarter. There has been significant softening in prices of units and townhouses in Cairns with reports of units selling for close to their purchase price off-the-plan from the 1990s.

This coupled with a shift towards more affordably priced units has contributed to the reduction in median sale price over the quarter and the last financial year.

The new Majestic Palms complex at Yorkeys Knob however continued to tick over more sales. Popular with interstate investors, the complex adjoins the Half Moon Bay Golf Course and is close proximity to all amenities.

Vacant Land Market

The median price of land decreased 5.9 per cent to $168,500 over the June quarter. Local agents don’t anticipate that the Queensland Building Boost will gain much traction in the region given the general softness of the sales market would make it difficult for second and third home owners to sell their existing property to upgrade to a new home.

New house and land packages also generally remain out of the financial reach of first home buyers.

Rental Market

The median rent in Cairns for a two-bedroom unit remained steady at $250 per week between June 2011 and June 2010. The median rent for a three-bedroom house increased $10 to $310 per week over the same period.

The residential rental vacancy rate in Cairns remained steady in June, decreasing to 3.7 per cent from 3.8 per cent in March.

Local property managers say vacancies are taking about two to four weeks to relet with about two to five applications per vacancy.

Information sourced from the Real Estate Institute of Queensland Market Monitor report for the June Quarter 2011 (Issue 11).

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 Property Market Overview Presentation

Cairns property market overview recently presented by Rick Carr from Herron Todd White at to the Cairns Chamber of Commerce. Click video image above or here.

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

WHAT ARE THE CURRENT MARKET CONDITIONS?

On Tuesday 19 April, 2011 commencing at 6:00pm Ray White Cairns Beaches will host another of its highly popular 'Sellers Information Seminars'.

A number of qualified guest speakers including valuers and industry analysts will cover a range of topics and questions from the floor.

The night aims to provide property sellers and buyers alike with the information that they require in order to make informed and educated decisions within the current local marketplace.

If you might be interested in attending please contact myself on 0425 713 700 or peter.musso@raywhite.com.

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

VICTORIAN INVESTORS ASSURED

Victorian-based investors in North Queensland property have been reassured that the residential real estate market in the Cairns region “will come back”.

Ray White Cairns Beaches Director Paul Stirling has held seminars in Melbourne this week with existing property owner clients to update them on the current state of the market.

Mr Stirling said Victorian investors were crucial to the long term future of residential property in North Queensland as they made up approximately 30 per cent of the investor market.

“Our meetings here in Melbourne with North Queensland property investors have been well received,” he said. “We have held three presentations with mostly existing investors. We provided them with facts and figures on where the market was from 1990, its growth patterns since then, where it is now on the ‘Property Clock’ and what the current economic indicators are pointing to in the near future.

“Many of these people are long term investors who have owned property in the Cairns region for between three and 10 years. They appreciated that we made a 4,000km journey to meet them face to face and bring them up to speed. Favourable comments were received regarding the content and factual nature of the seminar information – in particular the figures on vacancy factors in a rental market that is beginning to tighten from a balanced status."

“Our advice is that we feel the market has bottomed and there is growing confidence that the market will come back. “We’ve just given them the clear cut information to make a decision they’re comfortable with. If you don’t have to sell then don’t sell, unless you can use the yield for better purposes or investment elsewhere.”


Mr Stirling said he and the office’s business development manager Rachel Blok were breaking new ground by meeting with more than 60 investors during their Melbourne visit. “We held investor seminars last year in Perth and early next year we will be holding them in Sydney,” he said."

“It’s a good opportunity to provide an update on the residential market and information from a property management perspective to our long term investment property owners. But we also take the opportunity to meet potential new clients and we host a small function where owners can meet in a relaxed atmosphere.”

www.raywhitecairnsbeaches.com.au

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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