The Port Report - June 2002

CARNIVALE celebrated its 10th anniversary over the weekend of May 25/26 and once again attracted a large turnout estimated in excess 30,000 revelers. The majority of visitors specifically here for the event were from the Far North, ably supported by diehards and newcomers from the Deep South. The weather was ideal, the atmosphere enjoyable and the crowds in good spirits.

One man who did not have a great time was the driver of a vehicle queuing at a checkpoint for a breath test - a pretty common occurrence over Carnivale. Seems he panicked and did a U turn out of the line of cars and hightailed it to the hills hotly pursued by the police. Cornered, he fled from the vehicle (as they say) leaving behind wife and children but taking his mobile phone. The wife phoned the now fugitive to explain that the car (and possibly the family?) would be impounded if he did not return immediately. Having weighed up his options the man eventually gave himself up. The irony of this story is that when breathalised the now prisoner was found to be UNDER the limit.

However, he was charged anyway for failing to stop at a checkpoint and crossing double white lines whilst executing his getaway U turn. This has been just another story from the police files in the Naked Resort Town of Port Douglas.

Sales

A fairly typical couple of months leading up to the high season and what will be the most productive period for us. April/May saw more interest than sales, which is the norm.

• 13 Wharf St. Dress circle location, adjacent to Stinger Park with lovely views looking north over Trinity Bay. A reasonable home with great potential and position, which changed hands at a reported $2.2m.
• Cape Tribulation has been very active with Coconut Beach Resort; Fern Tree Lodge and Jungle Lodge sold to Voyagers (a subsidiary of The Lendlease Company) for a price of $11.m we are told.
• A pristine residential block of virgin rainforest with an area of 3ha, right on the Cape Tribulation beach recently changed hands after 25 years for $325k.
• An end to an era, as one of the founding families said farewell to the Cape Tribulation community with the sale of a 25ha pristine rainforest lot. This land was bought from the government in 1952 and remained in the same family until 2002. Changing hands this April (for a undisclosed amount), the new owner is committed to retaining the natural beauty of this magnificent property. Without a doubt one of the best views in the Far North.
• Closer to home Surya Villa's in Port Douglas's Solander area saw a lot of activity halving its available stock with three sales in quick succession.
• Two Villas at Rydges Resort sold for what was considered to be, by some, below their market value. With more sales to come in this complex, which is now being well run, this could turn out to be one to watch.
• A private block of 4 units in the Four Mile area went to contract for $535K.
• Finally, a lakeside home at Reef Park changed hands for a reported $538K. This sale could well be the trigger needed to stimulate this particular area, which has lain dormant for sometime. Interested parties should see probably the best selection of Reef Park property available on our investment or residential pages.

Project Report

• Outrigger at the Courthouse Hotel has reportedly sold all apartments (21) with 2/3 of the retail sites also sold. A good result, considering the time of year and release period.
• The Meridian is now well established as an off the plan project. The Management Rights have been sold to an experienced local team, which is noteworthy. Pricey but classy, Meridian will find its supporters predominately due to its location and style.
• Central Plaza Apartments are only a month off completion with 25 of the 28 apartments sold or under offer. This middle of the road property has attracted a lot of interest and is considered excellent value for money particularly with the optional leaseback arrangement. Again, Hedley's are hard to beat with a starting price of only $220K in a central location.
• Port Heritage and Cosmos located on and just off the main street respectively are well under construction with Port Heritage not far from completion. Apartments are still for sale in both these properties.
• Construction should begin in a month or two on an unnamed development, located on the corner of Garrick & Blake Streets. Only 6 luxury apartments on this large site, with the emphasis being on quality including a private lift, pools and underground parking. This top spot will attract plenty of interest, as property in this area is much sort after.
  

Hot Properties

• Tiani Gardens: An unpretentious compact two-bedroom unit at Four Mile. Tidy exterior, lacks a bit of TLC internally but why worry if it can earn $150 - $175 per week? At just $85K, with facilities that include: shared pool and covered car parking, defiantly worth a second glance.
• Rydges Reef: Two-bedroom villa recently renovated inside and out. Backs onto pool area. Projected returns for 2002 are looking very good. $129K
• Cabana Court: This townhouse earning a cool $200 per week and is well priced at $120K with a very keen vendor.
• Villa Sorento: Two bed/two bath/two blocks to town/ two years old/$230 per week long term ($175 per night holiday let)/too good to be true/Only $182,000 and the owner says sell!
• Monterey: Just one year old, this first resale unit is unfurnished, two bed & bath, in handy location commanding a good weekly rent of $230 per week. Unforeseen situation forces sale at $199,995.
• Holiday apartment at beach end of Macrossan Street: Small complex, excellent reputation, over 6% net yield p.a. Considered one of our best buys - $249k.
• Renovated home on Four Mile with separate 2 bedroom furnished unit, a recently refurbished office and a well planned entertainment area including stylish pool. $660k

While surfing the net lookout for our latest site, predominantly concerned with issues relating to acquisition or sale. The North Queensland Real Estate Guide is full of tips for vendors as well a s how oversea investors or those considering relocating to The Tropical North can best achieve their goal.

New Staff

We welcome Dennis Compton to the sales team at Ray White Port Douglas. Dennis has lived in this area for the last 30 years and has a formidable list of local contacts, which is akin to heavy artillery to a sale representative. His real estate experience goes back over 10 years with particular skills in rural property sales throughout the region. If your interest is country style Dennis is the man to call. His details are below.

Permanent Rentals

The permanent rental department has been as busy as expected for this time of year with the onset of the season. Our priority is to rent out as many of our properties as possible, whilst achieving the best possible return on your investment. If this means leaving a property untenanted for a couple of extra weeks to achieve a 12-month rental over a 6-month rental at this time of year, then we would recommend doing so. The aim is to ensure that as many properties as possible come up for rental renewal during or at the beginning of the season, rather than at the beginning of the wet season.

Investors take note; we are finding that with the number of new properties available in Port Douglas, there is almost a case of over supply. However, the newer apartments are the ones that do not sit on our books. We manage a number of brand new two bedroom units, which are now all on 12-month leases achieving between $220 - 230 per week unfurnished.

In order to compete with the influx of new buildings, we would suggest you consider refurbishing your older property. Nicola will report to you after carrying out her periodic inspections and can make recommendations as to what improvements might result in retaining tenants on longer leases, all the while ensuring that your capital investment is protected.

Disclaimer: This material is based upon information which we consider reliable, but because it may have been supplied by third parties, we cannot represent that it is accurate or complete and it should not be relied upon as such. This offering is subject to errors, omissions or withdrawal without notice.