Top Price Property of the Week - $955,000 - 18 The Point Castle Hill

Image: 18 The Point Castle Hill Photo thanks: Lyn and Rohan, Remax

This week’s winner

18 The Point Castle Hill

This week’s residential property Top Price Winner of the Week has all of the features that family buyers dream about when looking for a great home; beautiful views, plenty of space for his and her privacy, living space for mum and dad and the kids and a plenty of facilities to accommodate and entertain special guests from time to time.

Castle Hill is arguably the most prestigious suburb in Townsville because of its elevation overlooking the Great Barrier Reef and Islands and the short distance to the City's business district and tropical beaches.

The property sold for $955,000 which is $130,000 above the current median house price at $825,000 for the suburb.

The pinnacle of Castle Hill and the world-heritage listed landmark is 286 metres above sea level.

Dynamo property marketing duo, Lyn Griffiths and Rohan Banning from Remax describe the features and benefits of the property this way.

The property

This double storey Castle Hill residence also features a basement level which gives the man of the house his 'shed' or it could be a future granny flat. It boasts a quality finish and interesting views throughout the day and night, the sales agents said.

The main home is set over 2 levels and the layout is perfect for those families with older teens, or elderly parents. The property is featured packed including:

Image: Pool, 18 The Point Castle Hill
Photo thanks: Lyn and Rohan, Remax

•            4 king size bedrooms
• ·       3 large bathrooms, including master bedroom en-suite
• ·         Open plan living and dining upstairs
• ·         Extra living room on the lower level with direct access to pool area
• ·         Awesome kitchen featuring BOSCH appliances (induction cooktop, electric oven, dishwasher) granite benchtops, well designed storage drawers and a large corner pantry
• ·         Tiled entertainment area boasting stunning views
• ·         Private in-ground pool with views
• ·         Double (high clearance) lock up garage, with additional hardstand for off-street parking
• ·         Generous storage cupboards throughout
• ·         Exposed timber staircase in entry foyer
• ·         Fully tiled throughout
• ·         Internal laundry and kitchenette
• ·         Insect and security screens throughout
• ·         Fully air conditioned (split systems)
• ·         Ceiling fans throughout
• ·         Lush, irrigated gardens and lawn
• ·         Well utilized 717 sqm block
• ·         Fire-pit with built in seating
• ·         40+ sqm basement level for workshop, storage, man-cave
• 
  

The lower (entry) level is fully tiled and includes a formal entry, large central lounge room, generous storage, 2 large bedrooms, outdoor area, large full size bathroom, separate toilet and the combined laundry and kitchenette.

This level flows directly out onto the pool deck that features glass balustrade which shows off a gorgeous in-ground pool and waterfall, and a full length tiled patio with views and room to relax.

The high clearance double garage (with remote controlled panel lift door) has direct entry into the main foyer giving you direct access from your car to the home.

An exposed timber feature staircase takes you to the upper level which opens on one side to the remaining 2 bedrooms and bathrooms, and on the other side into an enormous open plan living and dining space which will make you feel instantly at home!

The master bedroom has its own private balcony, walk in robe and deluxe en-suite with double basins, wide vanity mirror and corner bath.

The last of the 4 bedrooms is at the opposite end of the adjoining hallway and includes a wall of mirror door built-ins and views to Castle Hill. Add to this area, the third bathroom and separate toilet and all we have left to explore on this level are the expansive living areas!

The living area is the hub of the upper level and encompasses a large lounge room, central dining area, casual sitting area and a massive high quality kitchen.

Image: Living and kitchen, 18 The Point Castle Hill
Photo thanks: Lyn and Rohan, Remax

Anywhere you turn on this level you are greeted by extensive views out of any of the windows!

The kitchen has been thoughtfully designed and ensures that any cook remains in the middle of the action as they prepare meals. It features granite benchtops, an island bench, generous storage drawers throughout, double sinks, a large plumbed fridge space, BOSCH dishwasher, induction cooktop and electric oven, plus there is plenty of room for a convection microwave and much more.

You'll never be left wanting for storage space within this kitchen, especially when you add in the large corner pantry!

The basement level of the home is accessed just across the lawn from the fire-pit and is secured by a roller door. This area is 40+ sqm and houses all of the air conditioning compressors, hot water system, pool filter equipment and much more.

You can create the ultimate man-cave, use it as a shed, convert it into a granny flat or just keep it as it is. At the back of the home, you'll find a lovely lush and flat lawn and garden with established trees and shrubs (and more of those lovely views).

In addition to this, there is an extra area within the block which is shaded and cool and features a myriad of fruit trees (mulberry, avocado, lemon, lime, paw paw) and an impressive herb garden!

You will search for a long time to find a home built as solid as this Ms. Griffith and Mr. Banning said in their online listing.

It sits high on the block and this also means you capture extra breezes and have more privacy than most, the couple said.

Investment profile

TREN's research has identified that the suburb of Castle Hill is the second most prestigious suburb in Queensland with a population of approximately 1000 people as recorded in the 2011 sensis.

Much of Castle Hill is a nature reserve but the sub-division of Yarrawonga, which was developed in 1983, covers an area of approximately 33 hectares on the north-eastern side of the Hill.

The suburb has a current median house price of $825,000 and over the past 12 months has recorded a median house price from $925,000 at the end of 2015 to $788,000 to the end of 2016.

Due to the low volume of sales data, just 16 sales in 2016, and a relatively small population sample in the suburb, Castle Hill is susceptible to anomaly sales because of the variations in sale prices that can sometimes occur with a limited pool of available information.

Achieving a sales price of $955,000, number 18 The Point will have a positive impact on the median sale price for the area as it exceeded the suburb year to date median house price of $825,000.

Image: Garden and firepit, 18 The Point Castle Hill
Photo thanks: Lyn and Rohan, Remax

Castle Hill is a destination suburb for its lifestyle. The suburb sales continuum has been very patchy over the past five years, making the median sale price out of reach for most investors. No recorded sales exist for 2011 and 2013.

On the back of just 10 sales, the median price for the suburb in 2012 reached $1.07 million and then dropped back $873,000 in 2014 off the back of just 10 sales. Over the past 18 months, the median house price has declined by 11 percent.

The median house rental price in Castletown is $585 per week. No data exists for units.

The residential rental yield for houses in Castle Hill is 3.7 percent. Over the past 12 months, 12 rental houses have been tenanted. Only 7 houses are advertised on the market for rent today at the time of our research.

The demographic profile of Castle Hill attracts older established couples with families making up 54 percent of the suburb, while matured aged buyers make up 8.5 percent.

Castle Hill is not affordable for the majority of buyers in the Townsville market. Young families make up just 2 percent of the population.

Castle Hill the landmark was named in 1864 by early explorers. In its early history, the area was known based on its Aboriginal place name of Cootharinga, which is one of only two areas in Townsville named by local aboriginals.

Further reading:

Guide to selling a luxury home

Guide to 22 knockout marketing tips to sell a home

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Guide to selling a luxury home

What it takes to sell a luxury home

Sellers want to get things right considering the value of the luxury home. Often worth millions of dollars, these homes are substantial investments. Putting forward a positive vision of the property is the all important aim because there are fewer luxury homes out there.

You have to appeal to the right buyer, know what it takes to create value for money and be able to negotiate masterfully when selling the highest priced homes available. Ensuring you set the right price and a competent real estate professional are a couple of aspects to be mindful of when selling luxury real estate.

Don't stop, and you will learn the fastest way to sell your home for the highest possible price. Selling any home is stressful, this 'guide to selling a luxury home' will maximise both without having to resort a frontal lobotomy for it.

Create a psychological profile of the buyer

Starting off a list of the best luxury home selling tips with creating a psychological profile of the buyer may seem strange but it's not at all. Drawing in a high-end buyer, first and foremost you want to know who you are selling to.

Casting the widest net when selling a luxury home is not going to work very well because we are appealing to a specific audience. Obviously, the buyer needs to be comfortable producing the money. Buyers with low margins are the last people we want to target.

So what are we actually selling? Are you selling into a neighbourhood, close to a city, great schools or the best restaurants, cafes and boutique shops within a short walk? There could be many more examples, but these are just a few.

What separates your home from other luxury homes in the area is the way you market to your strengths. You and your real estate professional must have a firm grasp on what these strengths are. TREN has an excellent guide on "How to think like a luxury real estate professional". Knowing the motivation of the luxury home buyer is critical.

Price it correctly

From day one, it is most important a luxury home is priced correctly. It is challenging to get it right. It takes years to master correct pricing. To sell at the best price and in a timely manner means examining the market, assessing comparable homes, gauging the strengths and weaknesses of the home and knowing what to look for in a luxury home.

Pricing a luxury home compared to ordinary home adds another degree of difficulty. Each luxury home has unique features that some buyers will cherish and there are less of them to compare. Therefore, pricing a luxury home because of these features it then harder to price.

Applying a "widget cutter" approach is what some inexperienced agents do in the "ways of pricing a home by a square metre method". Getting the price wrong is all they will achieve! Luxury homes are much more challenging to price. To get the highest possible price, the price must be spot on.

The luxury home will sit on the market too long and not sell if it is priced too high. It will become stale in the eyes of buyers and they will think something is not right.

When selling luxury homes this is especially true. Buyers and their agents are sure not going to forget about the home that has something wrong with it. It's like a blanket of fear and stigma sitting over the home. The stigma will even linger if you take the home off the market and relaunch in the future at a lower price.

Hiring an expert in selling a luxury home to start with and then set a correct price. Knowing how one neighbourhood is different from another and understanding how location relates to comparable sales information is essential. The value the luxury home is influenced by the neighbourhood. As we always say, location, location, location.

Understanding the "factors that determine home values" is a skilled luxury real estate professional. It's critical to establish the true market price and likely settlement value. Great agents know that comparable sold properties are vital information. Looking at homes sitting on the market a long time and not sold is a waste of time. Selling a home fast and at the highest price starts with accurate analysis and the right decision of the price.

Timing is everything

Luxury homes are often located in neighbourhoods that take advantage of local attractions, geography and topography. A home along Yarrawonga Drive in North Ward will look out over the water to Magnetic Island, offer spectacular views of Castle Hill and probably the city. In a tropical setting of North Queensland, buyers can take all of this in all year round, and get a realistic feel for why the home is so extraordinary.

In the months of summer, the heat and heavy humidity, and the oppressive rain, and constant cloud cover will tend to obscure the many benefits of owning a home. Selling the home in better weather conditions would obviously yield a higher price in the best possible light. Taking advantage of "the best time of year to sell in your location" at a better price is a great tip for a luxury home.

Where I am located here in North Queensland, listing a luxury home in the depths of a sweltering summer heat unless your budget is a factor, would not make any sense. Taking advantage of the optimal weather conditions when more luxury home buyers are active in the market. Selling in spring is without a doubt the best time of the year to sell in North Queensland.

Selling a luxury home in spring gives the buyer complete access to the property to get a thorough understanding of the best selling points. Selling a home in summer can still give you access to the luxury swimming pool, tennis court, beach front gazebo, boat jetty, workshop and the magnificent landscaping. But your buyers won't be able to appreciate these features if the ground is covered in rainwater from the many tropical storms or even cyclones that threaten the region this time of year.

If you are selling a luxury acreage or waterfront home, the time to sell is a very important factor.

Marketing online effectively

Getting the message out about the luxury home for sale requires targeting and finding the right buyer. Just loading the home upon any multi-listing service on the internet is inadequate not only to sell a luxury home but for any home.

A credible real estate professional will suggest a variety of marketing strategies for your home in addition to pricing the home. Although the first option will be to go online, the agents' network with past clients and other real estate professionals involved in high-end real estate, will be the most effective marketing option.

Contact with another real estate professional may yield the best buyers or they could come from the internet. Finding the agent who can reach the buyers who want what you have to offer is your first point of deciding your marketing options.

Taking advantage of the 'best marketing tricks for selling a home' is what the top agents understand. Leaving nothing unturned is the agent's job to get exceptional results when selling a luxury top-end home.

To select the best real estate professional, you should look for one that has a dominant presence online. Use Google or Yahoo to search for a real estate professional that market luxury homes in your area.

For example, you can try searching for "who is the top real estate professional in (insert suburb name)?"  to receive a list of top performing professionals. Agents that appear towards the top of the list should have a great understanding of real estate marketing. Avoid the advertised listings usually located at the very top and bottom of each Google search page.

Knowledgeable real estate professionals in search engine optimisation (SEO) combined with excellent social media and email marketing skills are usually highly visible online. Nearly everyone has their favourite social media network they use, as more people spend an increasing amount of their time on a mobile phone, iPad or Tablet. Taking your online marketing to the next level means having a dedicated 'social media real estate marketing' plan to get the high-end home sold.

People love looking at luxury property whether it be on Facebook, Pinterest, Google +, Linkedin, etc. Every real estate professional especially a luxury agent must be able to 'market to elite clients'.

Video and photography for elite marketing

Most people are going to want to schedule a viewing of the luxury home, whether through contacts of the real estate professional or if the buyer finds the home on online. Quality listings include photos and video tours of the property. A skilled home photographer can make any home look its best just as a landscape photographer can make the sunset appear closer and more iridescent than it looks. Great photographers make the pictures tell a story and attract buyers to the home.

Using a professional photographer on a luxury home is not an option because it is one of the most important aspects of selling a luxury home. With some 'helpful photography tips for real estate', you can respond to anybody knowing it is top of the list on how to sell a luxury home.

Like photography, a video is very important in selling a luxury home. Buyers come long distances to view the home. Conveying what makes your home extraordinary, a video tour can give them an excellent idea of what living in the home would look like. The cost of producing a video tour can cost you extra money, but it is worth the investment. The quality of the way the video looks plays a big role in attracting the right buyer.

If a real estate professional does not offer a video tour service then you should move on to other professionals that do offer the service. There are plenty of video tours of luxury homes in North Queensland. Take a look at this example.

I'm interested to know if you agree this video marketing is an excellent example of the features of a luxury home being captured beautifully? Considering the importance of catching buyers attention at the marketing stage, a video is a way to create a great first impression. Just as important is finding a narrator that can engage and emphases the key features of the luxury home.

Effective offline marketing

Just as important as your online marketing is your print marketing material. Marketing a high-end luxury home comes with the expectation the budget must include additional funds for marketing material. Perception and appeal is everything so high-quality glossy brochures is a must.

Capturing the feeling of what it is like to live in the home on that street, town or city is best achieved with effective story-telling in the marketing material. Selling the neighbourhood is just as much part of the story as selling the home itself.

When marketing the home these aspects should be emphasised. The kitchen is the most important room in the home so don't hesitate to spend extra time on it in the marketing. For example, 'quality appliances' including Sub-Zero fridge, a Wolfe or Viking stove, Thermador oven, a Miele or Bosch dishwasher are features that must be emphasised. Buyers of luxury, elite homes are looking for these appliances in the kitchen.

Avoid open houses

Most sellers assume that open houses are required because they are used so often. There is no data or agreement in the real estate industry about the benefits of selling an ordinary home. When it comes to luxury homes, there is a consensus that open homes are to be avoided. Open homes on a luxury property attract all walks of life into your home.

People that cannot afford the luxury home will show up. Even if they do have the money, they may not be interested as an active buyer anyway. They simply want to compare, kill time to have something to do or to see how you live. These people are 'tire-kickers' as they are commonly described in any selling industry. So the question is asked, 'do open homes sell homes'? In the internet and digital age, open homes have become less important, especially for luxury homes.

Real estate professionals use the open home as a way to meet new clients and promote their own brand and services. In a busy market, they seek to attract unqualified buyers and groom other prospective sellers in the neighbourhood. A luxury home is going to attract a lot of attention. An open home is likely to bring people to your home that don't have any business being there.

But of most concern is the criminal type that is attracted to the values in the home. As it is impossible to supervise everyone that comes through the home, it allows unsavoury people to take things that are not theirs. Worst still, they may set up the home by unlocking doors, windows, disarming security systems with the intention of returning later, when nobody is home, and take anything they choose.

With luxury homes, the motivation of criminals to get a big payday means they are a breeding ground for unwelcome people. Avoid open houses and the risk of losing things is reduced to next to nothing. Be very wary of an agent who pushes for an open home as part of this selling strategy.

Inviting 'qualified conjunction agents' instead of buyers through an open home is a good idea. Encourage your real estate professionals to invite these agents especially the ones who specialise in the luxury home market. A conjunction agent (commonly known as brokers in the USA) open home gives the local agents an opportunity to see all the best luxury features of your home. They can then speak to their buyers with confidence having first-hand knowledge of the home.

Characteristics of elite home real estate professionals

The agent you select to market your home becomes more important because they are the billboard hired to get the word out there about your luxury home and its extraordinary appeal. What characteristics to look for in a luxury real estate professional include:

• Highly effective communicator
• Has an eye for detail
• Has a comprehensive knowledge of the local market, inside and out and all attractions
• Pricing homes or conducting accurate appraisals. Look for a great list price to sale price (low discount %) and lower days on market than average
• Marketing expert in traditional and digital materials
• Is influential in their profession
• Excellent problem-solving and negotiation skills

When selling a luxury home, all of these skill sets are important from start to finish whether it is solving a problem that arises, communicating with you and other agents. The agent you choose must have more than marketing skills. That's why selecting the right characteristics in a real estate professional is the most important tip when selling a luxury home.

What it takes to sell

There are high-end features in a luxury home that are not found in any other property such as appliances, lighting, woodwork, cabinets and fixtures such as:

• Wine cellars
• Home theatres
• Indoor swimming pool and sauna
• Comprehensive secure systems including security cameras
• Central smart control system for everything
• Cooling and heating systems
• Energy monitoring
• Window coverings
• Concealed compartments

In order to get the best price for the home, the real estate professional needs to understand every component and feature of the home. 'Location and neighbourhoods' are important factors also when dealing with luxury homes. Your agent must know how to sell all of these things and not every real estate professional is suitable.

Keep these things in mind when choosing your real estate professional because we are aiming for the best possible sale price. Understanding luxury home buyers and selling the home's features and benefits within the fastest time possible is the job of your luxury home agent.

Keep in mind this Guide to Selling a Luxury Home and the nine tips when selling a luxury home and you will be moving on to your next home soon rather than later.

***Do you have a luxury home to sell in North Queensland or other Australian states and want to work with a real estate professional that fits the luxury home profile? Check in with TREN and will be happy to refer you to an outstanding real estate agent in your neighbourhood who works with elite properties.***  

More helpful reading on selling to the elite buyer:

Millionaires in Australia are not rich anymore
Tips for selling luxury homes
Real estate agents for the ultra rich

You can never have enough awareness. Consider reading these articles to help in your journey on learning how to appeal to luxury home buyers and to get your property sold.

About the Author:
Aaron McLeod is the Owner and Principal of Rapid Realty Australia, Owner/editor of TREN (Townsville Real Estate News), CEO of McLeod Investments and Consultancy and Co-owner of Matching Pear Travel.

National retailer embarrassed selling illegal smoke alarms in Townsville

Townsville residents are being warned about buying out of date smoke alarms from local retail and hardware outlets.

A local property owner reported purchasing non-complaint products from a local retailer this month, despite the fact new tougher smoke alarm laws were introduced in Queensland from the 1st January 2017.

Queensland's Minister for Fire and Emergency Services, the Hon. Bill Byrnes, said; "although residents would have up to 10 years to install the new alarms, everyone should take action to update their alarm system as soon as possible."

TREN can confirm that residents have been buying redundant smoke alarms from one of
Australia's largest hardware retailers as late as the first week in February 2017, over a month after the new laws were passed but at least 6 months since businesses had been warned of the impending changes.

One of the homeowners who contacted TREN about this public safety story presented one of the three alarms she purchased, and it clearly displays on the back side of the device, an expiry date of "12 July 2016". (see image below) The proof of purchase was also presented.

The smoke alarm was purchased from the retailer in February 2017 with "Quell Ionisation Smoke Alarm", "Manufactured in China for Chubb and Security Pty Ltd", who is based in New South Wales, clearly displayed on the back of the device.

Non-compliant ionisation smoke alarm
Image: TREN

When TREN alerted the retailer to the bungle a very pleasant and well-informed employee said: "this alarm is out of stock and non-compliant." When the employee was asked, "What about the other alarms that have already been installed?" The employee said: "they must be returned with your receipt and we'll give you a refund".

Many residents that have purchased the old ionisation alarms for their own homes reported that they feel confused, or completely not informed about what to look for when purchasing fire safety devices. This comes as the trend of online shopping is growing at a fast pace where cheap illegal products can be purchased very easily. No wonder consumers are confused and concerned about their safety and legal obligations.

Image: Queensland Fire and Emergency Services

Even when the labels on the ionisation smoke alarm in the above image are compared to the QFES website recommendations, it is understandable how residents could justify their confusion. The labelling of the smoke alarms is unclear and ambiguous based on the QFES recommendations on their website.

The yellow triangle hazard system on the homeowners' non-compliant alarm, which is not recommended, does not even appear on the QFES guidelines. Instead, a yellow square label is shown. And, even though the five tick Australia Standards symbol and Activefire Certified certification icon are shown on the QFES guidelines to be safe, the non-compliant ionisation alarm displays them.

Residents that are concerned and may not understand the new smoke alarm laws are advised to contact a smoke alarm installation professional, licensed electrical contractor or consult the Queensland Fire and Emergency Services website for further information. You can also contact the manufacturer with questions. For example, Quell has number to call 1800 654 435.

But with residents finding even the QFES website guidelines confusing, residents are encouraged to call a professional QFES "firefighter" to conduct a "Safehome" visit to receive advice about the best locations to place fire alarms and suggest other fire safety initiatives around the home.

To request a Safehome visit call 13QGOV or visit 
https://www.qfes.qld.gov.au/community-safety/freeprograms/Pages/safehome.aspx'

Townsville Citizens Under In-Direct Fire from Residential Development Moguls

Townsville property moguls and inept Councillors (including local State representatives) are
pushing Townsville residential property income into decline, while a higher cost base is impacting on the standard of living for local citizens in comparison to the prevailing Gross Regional Product (GRP) in the overall economy.

"Stuck between the devil and the coral sea", governments and high-end property moguls are unleashing a volley of crazy capital stimulation from the sea-side inner-city unit developments to the outer-urban residential developments.

Meanwhile, second-generation incumbent inner-city unit and urban housing owners are feeling the greatest impact with many investors being pushed to the brink with lower than forecast profit margins.

Factor in acquisition capital, high vacancies and reduced cash flows, and probable losses on distressed sales and mortgagee in possession scenarios have increased substantially in the Townsville region in the past 12 months.

Bungled government tax reform, soliciting middle-class income capital for social housing policy, misaligned climate change policy and an over-supply of new construction housing have by and large triggered structural changes in Townsville's tropical and regional economy.

While the real estate and rentals industry are the highest contributors in percentage terms to Townsville's GRP, it is a sector under enormous pressure from which some businesses and investors have been brought to their knees.

The ABC's David Chen reports that "new figures show Townsville continues to have one of the highest rates of personal insolvencies in the country. Data released by the Financial Security Authority shows for the September quarter, there were 76 personal insolvencies in Townsville. Financial counsellor Saskia ten Dam from the Townsville Community Legal Service said the poor local economy, high rents and increased costs of living were putting pressure on residents. "Well I would say a minimum of one a week of people who [are] walking away from mortgages, surrendering their homes," she said.

Local economist Mr Dwyer said; homeowners in some suburbs may be disproportionately affected by the economic downturn. “... I know from Australian Bureau of Statistics data that there are suburbs really battling substantially higher levels of unemployment compared to the rest of the city,” he said. (Townsville Bulletin, 20 Nov 14)

Townsville needs visionary leadership! Leadership with a desirable political influence in Brisbane and Canberra and connections to new funding and capital supply. Links to new capital raising methods such as 'crowd-funding' initiatives, strategic alliances, joint ventures and networking with large corporations, institutions and consortium.

Spawning new and niche products and services, coupled with incentives for corporations to develop and foster skills and jobs in new and emerging technologies, must be high priorities for government and corporate leaders.

In the face of influential leaders that have built their reputation and wealth primarily on the back of Townsville's traditional real estate developments, enabling new leaders that are connected to the global capital, new age technology and infrastructure is seemingly an insurmountable task. But the Townsville economy, its people and its leaders must adapt or fall behind an increasingly competitive and ascending middle class in Australasia.

Still, traditional skills and networks are essential to attracting secured capital, while engineering and construction expertise is needed to drive facilities developments such as a base load power plant, events and people facilities or government-sponsored infrastructure projects.

Decisions by State and Local Governments to release more residential land while seeking inner-city investment stimulation and more residential unit development is a crazy policy. Especially at a time in our economic and political cycles that Townsville is not winning a fair share of government funding based on the ratio of economic contribution the region provides to the State.

An example of crazy planning is the government sector funding of a combined federal military and private sector housing project at the new Blue Wattle community, a massive residential land release development covering 1500 hectares some 20 kilometres from the CBD. Less than 40% of the land will be occupied by defence personnel.

The non-direct investors, those living and working outside the City's trade zone, investing in Townsville is likely to continue with long term benefits, as direct investors have benefited from the growth of Townsville in the past decade.

But the local investor, many of whom are mature citizens, are needing immediate real economic stimulation from construction in sustainable industries and future growth technologies and trade networks. The City is set to continue suffering in the short term otherwise. Revenues and profits must improve to support personal lifestyles and local economic dynamics for small business and large enterprise in order for the standard of living are maintained based on previous generations.

Governments and corporate leaders must rapidly arrest the losses local investors and citizens are experiencing. The devil in the over-supply of residential property will haunt the citizens of Townsville for many months and years to come.

Townsville's productivity has been relatively stable while the citizens, investors and businesses are reaping less personal income from their labour and profits. Businesses and investors are being forced to reduce costs in order to maintain personal and corporate income, impacting substantially on the quality of life for the people of the City.

From an ear to the ground perspective, Townsville Real Estate Blog has actively reported on the general sentiment in the real estate economy and forecast short to medium-term supply and demand activity accurately. These forecasts have served as lead indicators for not only the real estate sector but the broader Townsville economy.

Rising Property Prices Stumble
http://townsvillerealestate.blogspot.com.au/2014/09/rising-property-prices-stumble-snapshot.html

Real Estate and Rental Industry Highest Contributor to GRP
http://townsvillerealestate.blogspot.com.au/2014/09/castle-rocks-real-estate-and-rentals.html

Boom or Bust? Convergence of Factors Impacting Townsville Real Estate market
http://townsvillerealestate.blogspot.com.au/2014/08/boom-or-bust-convergence-of-factors.html

The extent and depth of the cutbacks occurring in the mining supply chain reducing fly in and fly out employment, subsequent reduction in manufacturing outputs, climate risk insurers driving strata unit and housing costs through the roof, while increased energy prices impacted directly on big industry and small businesses...this translated directly to lower living standards for property exposed citizens.

But the most significant risk element for property investors, apart from unemployment moving forward, is the supply of land assets by developer networks connected to large land release projects.

In a climate of conservative government policy, with construction stimulation a pillar of the State government election platform, combined with a local enterprise and political leadership culture prejudiced in the belief that more residential development means robust economic stimulation, the people of Townsville are being shackled with a tendency for misdirected economic stimulation costing its citizens dearly.

"BATTLERS struggling to pay their rates on time have handed Townsville City Council a $490,000 windfall"

Council figures show 7,785 homeowners and businesses failed to pay their rates on time, up from 7,111 at the same time last year. The financial troubles of those homeowners and business are expected to produce a $490,000 windfall for the council, as the 15 per cent discount on rates no longer applies if payment is late. (Townsville Bulletin, 20 Nov 14)

A change of planning focus and strategic direction is needed urgently, especially as the newly agreed Australia and China Free Trade Agreement rolls into operation in 2015.

Anticipating structural changes in the economic mix, entrepreneurship must become the new apprenticeship and trainee initiative promoted by governments.

The Galilee Basin rail corridor, port expansions in Townsville and Abbott Point, new mining ventures including renewable energy farms, and relocation of government administration to the Capital of North Queensland are critical projects for the City and region.

Traditional jobs are estimated to half by 2035. Progressive solutions such as community hubs for emerging e-commerce, home-based small business networking and building technology enterprises around online retail and content curation services and infrastructure is the future. With base load power on our doorstep, heavy industry and manufacturing could better compete with trading partners.

Once construction is completed, the economic stimulation reduces substantially. Meanwhile more residential accommodation is presented as supply to the property market. This is more competition for existing house and apartment assets impacting the ratepayers of the City.

Paradoxically the real victims of the over-supply of land and residential developments are also expected to shoulder the costs of infrastructure development and maintenance for next generation investors.

These investors then fall victim to the paradoxical cycle unless the political, corporate and community leaders drive a different agenda for the benefit of our property investor citizens, ratepayers contributing over 40% of the revenue to Townsville City Council coffers.

Either tone down the residential construction stimulation or ramp up the infrastructure, facilities or investment in entrepreneurs to ensure the demand for residential accommodation is sustainable for the majority of incumbent citizens of Townsville and the developer moguls of the City.

References:

Townsville Real Estate Blog
Core Logic RP Data Reports
Townsville Bulletin
ABC News
Colin Dwyer, Local Economist