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Townsville residents are being warned about buying out of date smoke alarms from local retail and hardware outlets.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 NQ Capital Legitimacy Under Threat from North

Townsville's industrial relevance and Capital of North Queensland status is set to experience testing times over the next decade as the average vacancy rate approaches 30 percent in the City.

In contrast, the Cairns economy continues to see positive growth on the back of growing demand for agricultural products and international tourism experiences.

The City's business sector more broadly is seeing mixed activity with business confidence and job advertisements increasing while employment prospects continue to decrease.

Employment in the industrial sector of mining and construction has been impacted more than any other sector of the market.

The industrial sectors' contribution to Townsville's Gross Domestic Product (GDP) has reduced as a proportion to the total economic contribution of the region.

And therefore it begs the question about the relevance and future prospects for the industrial real estate market in Townsville and the City's claim to the symbolic title of being the capital of North Queensland. 

As the Herron Todd White Property Update for November 2016 reports, the job advertisements and business confidence is showing positive indications. But the all important unemployment rate is still unfavourable at 12 percent.

The actual number of people employed is the most telling economic indicator. On this measure, the trend since early 2011 has continued on negative news of approximately 25,000 workers losing their jobs to November 2016. This has been six years of sustained contraction in labour force wages.

Apart from mining exploration, extraction, processing and the commodity export supply chain, and various light industrial operations, Townsville's industrial and commercial sector has struggled to grow capacity as construction, mining and manufacturing GDP has reduced.

Technology is changing the supply chain's demand for labour and bringing unprecedented transparency on uncompetitive goods and services. This is impacting global industrials like never before. And this too will impact this sector of the Townsville market heavily.

Yet it's the industrial sector and the collaboration with landlords and tenants that will be critical in the next phase of Townsville's industrial relevance because innovation will enable existing products to develop and continue to find profitable markets, while invention will bring increased capacity potential and therefore more capability that will impact employment and GDP overall.

Cairns to the North of Townsville are competing for population and profits growth. Its leaders and commentators makes no bones about that.

Its robust international tourism and goods supply chain readily accessible to Asian markets, solid growth in property values, and a willingness to talk down Townsville's appeal at every opportunity, makes for challenging times for Townsville's property market and legitimacy as the capital of North Queensland.

References:

Herron Todd White Property Market Update November 2016

National Australia Bank Online Retail Sales Index June 2016

Australian Treasury Small Business Key Statistics and Analysis Report 2012

Rapid Realty Australia

North Queensland Strata Rental Market in Eye of Perfect Storm

Herron Todd White's Townsville Vacancy Rates Report, November 2013 shows the unit market is under critical strain and worthy of short term intervention from policy makers and general protest from investor groups and many thousands of owner occupiers.

Local, state and federal governments have been acutely aware of the cost pressures being felt by North Queensland property owners, particularly in the strata unit market, who by and large are first home buyers or elders in their twilight years of retirement, due to un-costed climate change policies, back flips and innuendo by previous governments and left wing lobby groups leading to an environment fit for power brokers in the insurance, energy and public taxation sectors to gouge profits.

Could a plan of fleecing struggling North Queensland property owners of their hard earned money while masquerading as energy suppliers, climate protectors, climate risk adjusters and dare I say it humanitarians be the intention of our domestic and global leaders?

It seems the balance of social and economic policy has gone too far and now the North Queensland strata unit market is the warning signal. It is a barometer of market economists and investors tracking the perfect storm hitting North Queensland strata property owners in the hip pocket.

The demand in the strata unit market in Townsville continues to feel the strain of government housing initiatives moving welfare or means-tested battlers into affordable housing schemes such as the National Rental Affordability Scheme (NRAS), defence housing moving to build and acquire more exclusive housing stock for military personal, a crack down on non compliant government funded housing tenants being pushed onto the private housing sector or distressingly into temporary shelters.

In addition, the broad base of demand from government and engineering industries have less economic support with higher unemployment figures which sits at 7.0% in Oct 2013 (ABS Labour Force Survey Data) in the North and North-west Queensland region.

Recent increases in the cost base for strata units such as higher levies driven by insurance, energy and local council charges (mostly driven by justifiable weather event and asset life cycle risks) has caused less discount affordability for owners to reduce rental prices while bearing the loss of more vacancy days at historical prices.

Townsville's rental vacancy rate for strata units stood at over 6.5% in Nov 2013 up from the record high of 5.5% in August based on Herron Todd White's Rent Roll Survey. Although many people have left the city for work, breaking their leases in the process, others have become an owner occupier while mortgage rates are at record lows. But many people are being drawn out of the rental market by the government funded NRAS.

Increasing rental prices therefore have come to a stop in 2013. In fact medium rental prices for houses have dropped by $10 per week while strata unit prices have not changed. Is this steady unit price due to strata unit holders having less timely control on cost adjustments while being impacted by increased costs to insurance, energy and government charges? The evidence seems to suggest yes!

Townsville Real Estate Blog believes the increasing cost base for strata unit owners and dwindling demand driven by unemployment and government funded schemes is creating a challenging period for Investors.

Prices in both the new and existing unit market has reduced over the past 12 months by $15k and $22k respectively. An increasing number of existing units have come onto the market for sale in the past few months suggesting more strata unit holders are exiting the market. The combined price discounting in both units and houses, the market is ripe for buyers seeking an entry point to the market with lower interest rates and capital city prices and demand increasing substantially over the past 12 months.

With approval of the Abbott Point Coal Loading facility by the Federal government and increasing tourism and construction expenditure, Townsville's residential property market cycle is set for recovery with local economists predicting a property "pulse" in 2014.

Townsville Real Estate Blog also believes 2014 should see a surge in demand with further sideways movement on prices early until existing supply thresholds are exhausted and demand again drives price increases off the back of growing capital city confidence, employment improvements and a slide in government funded residential housing initiatives. But the extent and timing of the recovery will also depend in no small part on the policy makers and global climate risk adjusters suspending their appetite for profit making in the strata unit market, which is traditionally placed at the most affordable spectrum in the property market.

Landlords need not be alarmed for the medium to long term as demand should improve driven by government and private investment confidence, capital projects such as Abbott Point, public infrastructure funding, and restructuring of government business models, returning robust economic activity to small to medium size businesses.

For North Queensland property owners, it's the policy makers and influencers driving costs to insurance, energy and government charges that pose the greatest risk to their short term wealth and lifestyle planning objectives.

For specific real estate advice, services and solutions, don't hesitate to contact the author with your comments. Real estate specialist and this Blog sponsor is www.rapidrealty.com.au

References:
Townsville in Focus Report, Nov 2013
Australian Bureau of Statistics Labour Force Survey Data

Townsville Landlords Ponder 100% Water Charging

Landlords may seek to explore Water Charging provisions in the Residential Tenancy and Rooming Accommodation (RTRA) Act from October 2010 as Townsville City Council introduces separate water charging notices to property owners.

Under the RTRA Act, Landlords can transfer 100% of water usage charges from the Council to the Tenant if the Landlord's property meets the following criteria;

1. the rental premises are individually metered (or water is delivered by vehicle), and
2. the rental premises are water efficient, and
3. the tenancy agreement states the tenant must pay for water consumption.

Rapid Realty's Principal in Townsville, Aaron McLeod is urging Real Estate professionals to consult with their Landlords to seek direction and instructions regarding the most appropriate way forward, aiming for a fair and reasonable outcome for all concerned.

The purpose of the residential tenancy legislation being introduced was to ensure water resources are used in a more sustainable and responsible manner by households and consumers.

As most people would agree, water is the most valuable natural resource available to the community and it must be managed accordingly.

For more information on water charging from the perspective of Landlords and residential Tenants, the RTA website offers useful guidelines and a fact sheet at www.rta.qld.gov.au/index.cfm

Real Estate agencies and tradesmen that need a more detailed appreciation of the water charging legislation that covers the types of products and the standard to which they must comply with the federal legislation, the WELS (Water Efficiency and Labelling and Standards Scheme) website is a useful source of information at www.waterrating.gov.au/

Mr Mcleod clarified that residential tenants with an existing tenancy agreement which does not specify 100% water charging is applicable are most likely on a scheme that allows the Landlord to charge excess water usage only. The property must still be separately metered.