Welcome to the Ray White Cairns Beaches & Smithfield Fortnightly Update
Dear Readers,
Welcome to 2019!
The personnel at Ray White Cairns Beaches & Ray White Smithfield on the back of strong economic fundamentals, are expecting a resurgent market in 2019, albeit, possibly not till the later part of the year.
What are our “strong (property) economic fundamentals” & why should investors view the Cairns market positively? The local “Cairns Report” within this newsletter provides detail & some compelling arguments.
Have you collected/received the latest edition of our ‘Yellow Book’? If not please call or email & we can either email or post the magazine to you!
I and the Sales-team at Ray White Cairns Beaches & Ray White Smithfield look forward to keeping you updated regarding the property market & offer all, energetic assistance in the buying & selling of property.
Smithfield Bypass
The State Government has reported the Smithfield Bypass will currently connect up with the Captain Cook Highway at the Caravonica roundabout, instead of Yorkeys Knob.
The re-plan means only one roundabout, at Smithfield, will be bypassed as a major aspect of the $152-million investment to enhance traffic stream.
Pre-development work is due to begin before Christmas 2018, with substantial development starting in March or April 2019.
White Christmas in Trinity Beach
Looking back to the end of 2018, it brought much joy to see each morning many hand prints on the window from the children that would come to see our in-house Christmas Village.
For the past 3 years, Ray White Cairns Beaches has thoroughly enjoyed creating the display of a miniature village along with Christmas train filled with toys that truly bring the Christmas spirit alive in our office.
For those who didn’t get to see it, we have it below for you to enjoy.
Matters Affecting the Cairns Marketplace
Without doubt, in terms of Regional Queensland Cities, Cairns (economically) has faired far greater than Townsville, Mackay, Rockhampton & Gladstone – all of which suffered high percentage value downturn as the demand for natural resources declined.
Tourism – Cairns’ major income earner has seen the local values reasonably stable, although there is clear evidence of an approximate 5-7% downturn during 2018. Will we see this fall arrested in 2019? Certainly, Cairns economic fundamentals are looking favourable!
Rental vacancy at record low
Rental values have increased due to demand
Will increase in rental demand during 2019 as workers for new major projects commence
Australian Dollar hovering around $0.71 – $0.73 USD
Major accommodation & infrastructure projects commencing
Demand for F.I.F.O workers also expected to increase
Owner & Buyer Confidence
Capital gain is the weakest aspect of investing in Cairns over the last 10 – 15 years! For many, depending on the ‘Buy-in/Sell-out’ timing, there has been a capital loss! This fact has eroded buyer confidence.
Why should people invest in Cairns?
For personal or climatic reasons
Our yearly Return on Investment is strong (builds equity)
The ‘buy-in price’ & on costs are lower than most areas in Australia! (build equity more quickly)
Investment Asset Management
Joseph Indorato – our senior Rental Manager who is arguably the most credentialled Rental Manager in Cairns and I, are justifiably proud of the work ethic & attitude of our Asset Management team.
Boasting an average employment term (excluding Joe’s 12 years) of five (5) years this team of professionals is also one of stability & consistency!
For all your questions regarding asset management, please contact Nicole Barry on0418 763 311
We wish you good health & fortune during the year ahead!
Rental Demand Climbs
The Cairns & region population is forecast to grow by up to 2 percent this coming year. The opening of 3-4 new hotels in consecutive years, which all have to be staffed, will be the foundation of the population growth.
Add to this the infrastructure industries that support Hotels & Tourism, an increase in demand for F.I.F.O mining personnel & workers in Government funded infrastructure & Cairns has a looming rental crisis in the near future.
On average when a vacancy occurs in our rental portfolio there is an average of 3 applications per property. Just this week at it’s first viewing, a four (4) bedroom house received 10 viewings during the inspection time.
Investors – an already strong return on investment for Cairns property, will, we believe, rise further as a result of population growth & Queensland is one of, if not the cheapest states for Government charged stamp duty at purchase time.
House & land packages, where you maximise your asset depreciation are available for purchase – and immediate rental!
Till Next Time.
Best Regards,
Paul, Joe & The Team
Ray White Cairns Beaches / Ray White Smithfield
