Quick Snips August 2013<< Back to Blog
I would love to kick off this months newsletter by telling you it’s been a cracker of a month here on the coast. But it hasn’t been. Four straight weeks of rain and on shore winds has wiped the smiles off our faces as we are all wondering who stole our winter. This is supposed to be the time for cool mornings, clear skies and never ending off shore days. The Coast is a simple place that definitely feels better when the sun is out and everyone can get out of the house and enjoy themselves and spend money in the shops and restaurants, etc, but that’s not happening right now. We have definitely been dudded. The long range weather forecasters unfortunately definitely got it right when they said we were going to be in for a wet winter. Lets hope that it’s just a late winter and the good times are about to arrive. We will need every bit of goodness we can get our hands on to get us through the rest of the longest ever, never ending election campaign that will come to an end one day but only when someone decides that they have put us through enough of this rubbish and calls an election. There are plenty of reports around saying that all we need is a lift in confidence and the local economy in general will kick off and nothing makes us feel better than beating up on a politician at election time (any politician). Please, bring it on. Anyone.
The good news is that despite another run of King Tides our beaches are replenishing well. It is really impressive to monitor the volume of sand that moves naturally when the right conditions allow it to return to the beach and the dunes. All of the exposed rock is now well and truly covered and many mornings it can look like someone has snuck in with truckloads and just dumped it in large mounds.
We went to an economic presentation put on by Macquarrie Bank this week.. Some interesting points that were relevant to our part of the world and the real estate industry generally. The turn down in the mining cycle has definitely commenced. There is about to be a significant reduction in employment in the mining areas which means that many of the people that have left the Coast over the last few years will now start to look at returning here. This is what will be described as the rebalancing of the economy. The big problem is that the people that return to the Coast will need to be working and the more traditional areas of employment such as housing construction, tourism, etc still haven’t shown any signs of life yet. Conditions are all set for it to happen but a major lack of confidence (think election) is still missing to kick start things locally. We could possibly be looking at up to 0.75% reduction in interest rates happening quite quickly (think pouring petrol on a fire) but that would also require the banks to pass on the reductions and for these reductions to actually make a difference because we are already at very low rates. The reduction in rates should also help pull the Aussie dollar back to healthier long term levels which they think are more likely to range between 85-90 cents over the near term. Not so good if you are heading overseas but helpful if you are involved in local tourism in any way. The good news for the SEQ residential real estate market is that our turn is coming it’s just hard to put a finger on when it will be our turn. There is still the opportunity for improved sales volumes but there are still significant obstacles to price growth for some time yet. There was plenty more along these lines and I should be able to pass an electronic summary of the presentation along to anyone that is interested. If you are interested please email me on email@example.com.
More good news is that Coolum’s newest tourist attractions Dino World and Car World (previously known as Palmerville)were approved by council this month. 150 replica, made in china dinosaurs scattered amongst botanic garden and golf course settings and a classic car museum were the first approved changes. I can see these changing things up very quickly. Better not stand around too long or you will get run over by the stampede of visitors.
Not much has been said about the very abrupt departure of Singapore Airlines leaving it’s Lear Jet Training facilities at Maroochy airport with virtually no notice. This was a headline tenancy and major business at the airport that had only very recently invested nearly $40,000,000 in upgrading it’s facility. I will update this more next month if possible but if anyone needs a cheap flight simulator let me know.