Cairns Watch shows "moderate" economic growth but good signs on employment

 

Is an increase in job advertisements in Cairns a sign the TNQ economy is ready to boom again with a period of strong employment and economic growth?

The October Cairns Watch report by Herron Todd White shows that while the Cairns economy is advancing the rate of growth had “moderated” in the past month with improvements across key categories including airport visitor numbers, employment figures and job advertisements in the city.

There was also a “spike” in building approvals in August.

Buoyed by the inclusion of 110 new units to be built in the Cairns CBD as part of the Crystalbrook Collection, another spike is expected when the first component of the Nova City Development (335 new units) reaches the building approval stage, Mr Carr cautioned it was not all good news in the construction industry.

“While these Cairns CBD developments are very welcome, it is drawing a long bow to suggest that just two projects are the start of a new upward trend rather than one-off spikes,” he said.

“The number of new houses in particular remains at a low ebb.”

Trend employment was up 7.7 per cent between September 2016 and 2017 and the unemployment rate has also reduced “significantly” in the past 18 months.

It now sits at 5.6 per cent in September 2017, below the state average of 5.9 per cent with the job advertisements trend rising to 8.1 per cent from September 2016 to 2017.

This figure was based on an analysis by economist Pete Faulkner from data released by the Australian Bureau of Statistics.

In the year to September 2017, passenger numbers have increased in trend terms by 0.7 per cent at the domestic terminal, 5.2 per cent at the international terminal, and 1.3 per cent overall.

“Passenger number trends at Cairns Airport have also eased off in recent months at both the domestic and international terminals, moderating the year-on-year trend growth rates,” he said.

On the property front, Cairns remains very much in a “steady state” with generally static prices with the analysis pointing to decreases in property prices with a slight drop for houses and units but a slight upwards movement for land.

“Even though price movements for individual properties can be mixed, our general view is that prices overall are relatively static,” he said.

“The latest trend median prices, for properties sold in the month of September 2017, came in at $405,000 for a house, $204,000 for a unit, and $213,000 for a block of land.”

“The number of residential properties listed for sale in Cairns also remained static in the past year due to the number of new listings each quarter closely matching the numbers of sales.

“The overall number of properties listed for sale stood in trend terms about 2,800 in the September 2017 quarter, made up of about 1,800 houses and approximately 1,000 units.”

Source: www.tropicnow.com.au

Cairns economy 'powering ahead' as jobless rate falls

 

A local economist says the Cairns economy is “powering ahead” with the trend unemployment rate falling to 5.3 per cent in June, the lowest level seen in almost a decade.

 

Analysis of the latest ABS figures by economist Pete Faulkner at Conus shows the trend unemployment rate in Cairns is at its lowest level since September 2008 and well below the state average of 6.3 per cent.

 

Trend jobs have increased by 1,300 since May and are up by 12,700 for the year. Of those jobs, 7,800 were full-time positions with the trend participation rate increasing to 63, its highest level since October 2013.

 

Mr Faulkner said the latest figures and strongly positive results for the year means “there is no doubt that the recovery remains in place”.

 

Cairns is now the third fastest growing region for employment growth outside of Greater Brisbane.

There is also good news in Townsville with trend unemployment at 7.5 per cent, down from 7.8 per cent in May.

 

In the past year, Townsville has added 13,400 new jobs, with 10,000 being full-time.

 

Mr Faulkner said there was a significant recovery in the labour market in the past year in Cairns and Townsville and the latest unemployment figures were good news for regional Queensland as a whole.

“The regions generally have done better with the trend unemployment rate in the rest of Queensland falling to 6 per cent, while Greater Brisbane has risen to 6.7 per cent,” he said.

 

“For the year, the rest of Queensland has added 31,700 new jobs (22,300 full-time) while Greater Brisbane has added 11,700 new jobs (8,200 full-time).”

 

However, Cairns' youth unemployment levels remain stubbornly high and is up slightly to 12.6 per cent in June with an extra 3,400 youth jobs in the past year. Youth unemployment in Townsville dipped to 18.4 per cent.

 

The full Conus Trend data for unemployment in Queensland is available for download: http://www.conus.com.au/blog/

QLD First Home Owners' Grant boost extended until the end of the year

 

The Queensland First Home Owners' Grant is a state government initiative to help first home owners to get their new first home sooner. Depending on the date of your contract, you’ll get $15,000 or $20,000 towards buying or building your new house, unit or townhouse (valued at less than $750,000). You can even buy off the plan or choose to build yourself. It’s a great opportunity to buy or build a new home in our great state.

 

How a Queensland First Home Owners' Grant can help you

• If you're thinking of buying or building a new home, this could be what gets you started.
• It could get you something more than you were expecting.
• It can get you into your first home sooner.

Note: The $20,000 Queensland First Home Owners' Grant is not available to contracts that replace previous contracts entered into before 1 July 2016. If your contract to purchase or build is signed between 1 July 2016 and 31 December 2017, you may be eligible to apply for the $20,000 grant.

To be eligible for the grant:

• You must be an Australian citizen or permanent resident (or applying with someone who is).
• You or your spouse must not have previously owned property in Australia.
• You must be at least 18 years of age.
• You must be buying or building a brand new home, valued under $750,000.

Source: https://firsthomeowners.initiatives.qld.gov.au/...

Could you get caught with a foreign investor's tax bill?

The 2017 May Budget introduced a range of Government initiatives aimed at restricting foreign ownership, and while some of these may give the impression of helping affordability for local buyers, there is a risk that some home buyers could be held liable for the owner’s tax bill.

Previously, legislation required buyers of properties owned by foreign residents (worth more than $2 million) to withhold 10 per cent of the purchase price and send it to the Australian Tax Office (ATO). As a result of the Budget, the threshold has been reduced. Now every property worth $750,000 or more is affected and the Withholding Tax will increase to 12.5 per cent from 1 July. However, the previous threshold and rate will apply for any contracts that are entered into before 1 July 2017, even if they are not due to settle until after 1 July 2017.

While the changes have been generally welcomed, it is essential that lawyers and conveyancers proactively ensure their clients abide by the law. Buyers who don’t retain the 12.5 per cent withholding tax could find themselves liable for a penalty from 1 July, which could be the full 12.5 per cent of the purchase price as well as interest. Nobody would want that!

The ATO website states that purchasers who don’t receive a “clearance certificate” from the vendor and don’t send the Withholding Tax to the ATO, will be held liable.

To avoid potential settlement delays, complications and the risk of liability, owners who are selling properties worth more than $750,000, should request a clearance certificate from the ATO to prove they’re an Australian resident for tax purposes. Likewise, buyers of such properties should have their lawyers or conveyancers double check that the certificate has been obtained.

‘Purchasers who don’t receive a “clearance certificate” and don’t send the Withholding Tax to the ATO, will be held liable’.

Now that many more properties fall into the Government’s tax net, there’s potential for delays acquiring clearance certificates, which used to take anywhere from a few days to four weeks. So, vendors would be well advised to apply for the certificate the moment they appoint a conveyancer or real estate agent. This will assure that the moment a sale price is agreed with a buyer, there will be no impediment to completing a contract of sale and the buyer will have confidence they are not placed at risk.

For the majority of local buyers, there should be minimal risk as long as they make sure the Clearance Certificate has been obtained. However, for local resident vendors, the risk of a tax audit following the request for a Clearance Certificate could be heightened, under certain circumstances.

First National Real Estate Cairns Central
http://www.fncairnscentral.com/

Hop into your new home this Easter. Cairns Real Estate Market Update.

Chris Eustace - First National Cairns Central Real Estate

Facebook Twitter Website YouTube In this issue: Introduction Cairns local news Recently listed The SOLD list Cairns market report My amazing team Testimonials My amazing team Sales Consultant Sales Coordinator / Marketing Investment Manager Testimonials "Chris demonstrated nothing but utmost integrity when we purchased our property through him. He was available at all times and worked diligently to ensure the process from start to finish was clear and smooth. Great job all round." Justine "Chris is an honest, very dedicated and hard-working person - the best contact I have ever had in my years of purchasing and selling properties in Australia and overseas." Elizabeth "Chris made the process of buying our first home a simple and rewarding experience. He was readily contactable and followed up any requests in an expeditious manner. Most importantly, we never felt as though we were being pressured in any way. We would be happy to recommend Chris! " Jonathan "Did a great job on selling my property, excellent communication every step of the way." Ben "I found Chris to be extremely personable, always ready to assist throughout the purchase of my first apartment. He was able to answer any questions I had and made the whole process of buying my first property enjoyable. I would definitely recommend his services to any of my friends or co-workers!" Nadine "Having moved our listing from another Agent, we were pleasantly surprised at the difference in approach to the whole sale process- the efficient, calm and down-to-earth manner, the prompt return of our calls and quick responses to all our queries is quite simply what we all vendors expect of our Agents. This agent delivered all these in spades. This agent did an excellent job for us and we look forward to working with him again in the future." Frank "Thank you Chris Eustace for selling my home. Your enthusiasm and professionalism was so refreshing. You got my price without any "to and fro's". Such a smooth, no fuss sale...and it took just 8 days! Both myself and my buyer are over the moon!" Karen Take advantage of the 2.5% cash rate now! Our local representative at Australian Finance Group (AFG), Nick Barr, will negotiate with banks, credit unions and other credit providers on your behalf to arrange loans or refinancing. I highly recommend Nick so let me know if you would like me to put you in contact with him. Hop into your new home! Well we have survived another busy month but it's not slowing down as April is always busy with April Fool's Day, school holidays, Easter and ANZAC day with the 100th Anniversary of the Landing at Gallipoli (see details below). I'm also looking forward to a night of live music when Donavon Frankenreiter comes to the Tanks Arts Centre. 100th Anniversary of the Landing at Gallipoli Starts: 25 Apr 2015 03:50 am Ends: 25 Apr 2015 10:15 am Location: Cairns 3:50am Dawn parade (assemble at Martyn St Cemetery gates at the Anderson St entrance) 5:30am The Centenary of ANZAC Dawn Service will commence at the Cenotaph on the Esplanade 5.30 am.  Ex-service and serving personnel and spectators are requested to be at the Cenotaph by 5:00 am.  The Dawn Service will include the mounting of the Catafalque Party, an ANZAC prayer; official wreath laying; Ataturk's letter to Australian Mothers; the playing of the Last Post; the Ode to the Fallen; a Minutes Silence; the playing of the Rouse; the hymn The Recessional; an address by Lieutenant Colonel Ben Toyne, Commanding Officer, 51st Battalion, the Far North Queensland Regiment; handing over of the Torch; the Benediction; singing of the Australian and New Zealand National Anthems by the combined Choirs of St Monica's & St Augustine's colleges; and, the dismounting of the Catafalque Party.  7:30am ANZAC breakfast and performance of The Soldiers Wife Ecumenical Church Service The Centenary of ANZAC Cairns Ecumenical Service will be held in St Monica's Cathedral commencing at 8.15am.  The service will include a choir and ensemble of students from Freshwater Christian college and Trinity Anglican School; a recital of the poem ANZAC Day and the Ode to the Fallen by two Cairns High School students and a solo piece (Abide With Me) by Patrice Hogan accompanied on the Cathedral organ by Toni Dunstan.  Members of the Australian Cadet Corps will mount a Catafalque Party prior to the playing of the Last Post by Rachael Evans.  Bob Manning, the Mayor of Cairns will provide the Closing Remarks. Commemoration Parade The Centenary of ANZAC March will assemble at Munroe Martin Park at 9.30 am and step off at 10.00 am.  The March route will be along the Esplanade arriving at Fogarty Park for a community service concluding about 11.00 am. Book a property appraisal Cairns local news The Cairns housing market is still slowly rising with the median house price in Cairns now sitting at $402,400 in January 2015. The open homes are attracting more buyers and we are seeing sale prices driven up by multiple offers on the well-priced and presented properties. With unemployment rate down, airport passenger numbers up and building approvals also up, this is all good news for the Cairns economy, let’s just hope it can be continued throughout the year. Free property appraisal Recently listed Click here to see all my properties for sale. 14 Wiseman Road, Edmonton HOUSE: 3 Bed 2 Bath Offers over $345,000 Read more... 23 Kendall Street, Mount Sheridan HOUSE: 3 Bed 2 Bath Offers over $365,000 Read more... 10 Amadio Close, Gordonvale HOUSE: 3 Bed 2 Bath REDUCED $342,000 Read more... The SOLD list !! Click here to see all my sold properties. Bentley Park 131 Timberlea Drive House Brinsmead 18 Adam Drive House Edmonton 14 Peate Close House Earlville 2/33 Balaclava Road Unit Edmonton 22 Lennox St House Redlynch 17/58-70 Intake Road Unit Mount Sheridan Mt Isley Estate Land Manoora 301/29 Springfield Crescent Unit Contact me today! Cairns market report* Property prices Median property prices for houses and land in Cairns have escalated over the last three years, with the median house price trend cracking the $400,000 mark, reaching $402,400 in January 2015. This represents a trend rise of 6.5% over the latest 12 months. The median land price has increased by an even higher 18.4% over the same period as a result of land price escalation particularly on the Northern Beaches, to reach a tentative $216,200 in January 2015. However median unit prices continue to show a downward trend. Property Sale Volumes Property sale volumes have been steadily increasing over the last three years, with the December quarter 2014 sale volumes 48% higher than they were in the December quarter of 2011. However growth in property sale volumes is starting to taper as the amount of property for sale itself tapers. The slowdown in growth is especially noticeable for houses, where potential vendors are hanging off in the expectation of higher prices, and for land where demand in parts of Cairns is outstripping production.   Rental Vacancies Rental vacancy rates remain at levels indicative of a tight rental supply. Current rental vacancies appear to be rising mildly in trend terms for houses, but are lowering for units and the market in general. The trend vacancy rates for February 2015 stood at 2.4% for houses and 2.3% for units. The market vacancy trend overall stood at 2.3%.   *Source: Herron Todd White March 2015

Copyright © 2015 First National Cairns Central, All rights reserved.

February 2015 - Grand slam summer of housing

Chris Eustace - First National Cairns Central Real Estate View this email in your browser

Facebook Twitter Website In this issue: Introduction Cairns local news Recently listed The SOLD list Cairns market report My amazing team Testimonials My amazing team Sales Associate Sales Coordinator / Marketing Investment Manager Testimonials "Chris is an honest, very dedicated and hard-working person - the best contact i have ever had in my years of purchasing and selling properties in Australia and overseas." Elizabeth "Chris made the process of buying our first home a simple and rewarding experience. He was readily contactable and followed up any requests in an expeditious manner. Most importantly, we never felt as though we were being pressured in any way. We would be happy to recommend Chris! " Jonathan "Did a great job on selling my property, excellent communication every step of the way " Ben "I found Chris to be extremely personable, always ready to assist throughout the purchase of my first apartment. He was able to answer any questions I had and made the whole process of buying my first property enjoyable. I would definitely recommend his services to any of my friends or co-workers!" Nadine "Having moved our listing from another Agent, we were pleasantly surprised at the difference in approach to the whole sale process- the efficient ,calm and down-to-earth manner, the prompt return of our calls and quick responses to all our queries is quite simply what we all vendors expect of our Agents. This agent delivered all these in spades. This agent did an excellent job for us and we look forward to working with him again in the future." Frank "Thank you Chris Eustace for selling my home. Your enthusiasm and professionalism was so refreshing. You got my price without any "to and fro's". Such a smooth, no fuss sale...and it took just 8 days! Both myself and my buyer are over the moon!" Karen Take advantage of the 2.5% cash rate now ! Our local representative at Australian Finance Group (AFG), Nick Barr, will negotiate with banks, credit unions and other credit providers on your behalf to arrange loans or refinancing. I highly recommend Nick so let me know if you would like me to put you in contact with him. Slamming into 2015 January was hot summer of tennis with the Brisbane International, Hopman Cup and Australian Open which was only fitting as January has seen a grand slam of houses come onto the market! Now into February the rains are here and the buyers keep pouring in. It's turning out to be a great start to 2015. You will also notice that the format of this newsletter is a little different this year. I have also updated my website this year - www.chriseustace.com. Let me know what you think as I am trying to keep things fresh, interesting and easy for you to read. I have covered my #KISSchris method - Keep It Smart and Systematic by following these steps. Choose your agent Book an appraisal Marketing campaign List and show Negotiate sale Book a property appraial Cairns local news February brings Valentines Day and Chinese New Year. This year is the Year of the Goat or Sheep and the Chinese New Year Street Festival will be held in Grafton Street, which was the heart of the orignal Cairns Chinatown precinct (formerly known as Sachs St) on the 21st of February from 4pm. 2015 looks to be an exciting year for Cairns and the Far North. Here are a list of things that have got us talking: SilkAir to launch direct flights from Singapore to Cairns Jetstar launched direct flights from Cairns to Bali $1.97 billion large-scale 50,000ha farm at Etheridge 20-year $1 billion Cairns Airport redevelopment $1.45 billion Rio Tinto Alcan bauxite mine expansion south of Embley $1.4 billion Ella Bay resort $400 million Aspial Singaporean Towers $50 million Cairns Aquarium Aquis is still on the cards Work on the $453 million Cairns Hospital redevelopment continues $200 million Botanica Property Group’s integrated residential precinct at Caravonica Satterley’s $500 million 2500 lot Mt Peter residential subdivision $25 million second stage of the Cairns Homemaker Centre at Portsmith $32 million Bunnings Warehouse Free property appraial Recently listed Click here to see all my properties for sale. 131 Timberlea Drive, Bentley Park HOUSE: 3 Bed 1 Bath $324,900 Read more... 10 Ferngully Street, White Rock HOUSE: 3 Bed 1 Bath $290,000 Read more... 18 George Street, Earlville HOUSE: 4 Bed 2 Bath REDUCED $435,000 Read more... The SOLD list !! Click here to see all my sold properties. Brinsmead 18 Adam Drive House Edmonton 14 Peate Close House Earlville 2/33 Balaclava Road Unit Edmonton 22 Lennox St House Redlynch 17/58-70 Intake Road Unit Mount Sheridan Mt Isley Estate Land Manoora 301/29 Springfield Crescent Unit Contact me today! Cairns market report* The Cairns property market continues to progressively recover, however, the market recovery has not been uniform across all areas of Cairns. Median land price trend is rising and so are airport passenger numbers due to the high number of domestic passengers. Property prices Median property prices for houses and land in Cairns have escalated over the last three years, with the median house price trend rising by 4.9% over the last 12 months to reach $390,700 in November 2014. The median land price has increased by 8.3% over the same period as a result of land price escalation particularly on the Northern Beaches, to reach a tentative $208,900 in November 2014. However unit prices continue to struggle, with a tentative downward movement of 3.6% over the 12 months to November 2014. We keep saying that the property market recovery has not been uniform across all areas of Cairns, and here's the proof. Recovery to date has been strongest on the Northern Beaches, where the median house price has risen 22.3% over the period from the December quarter of 2011 to the December quarter of 2014, and is now 8.7% above its 2007-08 peak. At the other end of the scale, the median house price in the Southern Corridor has risen only by 7.0% over the same period, and remains 5.0% short of its 2007-08 peak. Median house prices in the other two areas of Western and Central Cairns have risen by 16.1% and 13.8% respectively, and have both moderately surpassed their 2007-08 peaks. Property listings The volume of property for sale has steadied in trend terms, with house and unit sales now seeming to occur at a similar pace to which they are coming onto the market. The trend in the overall number of property listings has reduced by 29.1% from the December quarter of  2011 through to the December quarter of 2014. Even though this means new property  listings have matched demand in the latest quarter, agents are still reporting a lot of potential vendors holding back to wait-and-see what happens to prices over the next 12 months. Rental prices Rent levels increased during the latest quarter for the larger categories of housing (3BR-4BR houses, 3BR units), but remained stable for the smaller dwelling categories (1BR-2BR units, 2BR houses). Over the twelve months to December 2014 the Cairns weighted average median rent has increased from $370 to $385 per week for houses, but remained unchanged at $270 per week for units. *Source: Herron Todd White Jan 2015

Copyright © 2015 First National Cairns Central, All rights reserved.