Townsville Enterprise acting vicariously for the Townsville City Council, is boasting about the significant economic stimulation that the Adani project, rail and port upgrades, military deal with Singapore, solar energy projects, stadium project and the "Smart City Deal" are going to inject into the local economy.
Although a noticeable inflow of jobs could occur during the construction of these mostly industrial and infrastructure projects, the majority of the stimulus and ongoing gross domestic product (GDP) will occur in districts outside of the Townsville City boundaries.
Adani's coal operations are located in Central Queensland, west of Mackay, and the port is located in Bowen as part of the Whitsundays district. Even the proposed military base for the Singapore Army is located in the Charters Towers district, not Townsville.
Although Townsville can claim Adani's head office in the city, once again relatively low ongoing jobs and employment is derived from the mostly management and administration positions. With the anti-coal movement alive and kicking, including Australia's banks, advocating against Adani's coal interests, these jobs could still be under serious threat.
Moreover, the "value add" criteria codified in the Smart City Deal, is the formula from which all future majority federal and state government funding is linked. Private capital investments in projects outside Townsville's economic zone such as Adani's coal mine, would not be worthy of critical federal and state infrastructure stimulation in the Townsville rate payer districts.
The Smart Cities Plan and "City Deal" contract was signed by Council, State and Federal Governments in December 2016. Because of this Darwinian decision, Townsville's civic policies are being hijacked by individuals career agendas within the Townsville Enterprise leadership focusing and advocating on projects outside the "value-add" parameters of the City Deal.
The Townsville Enterprise focus is "Townsville North Queensland" and not the Townsville districts, meaning its real focus is on council districts across North Queensland rather than an exclusive agency of Townsville City Council and the ratepayers of the City. In addition, the Townsville City Council is seemingly incapable of formulating or delivering commercial enterprise initiatives. The lack of real funding for Townsville districts in the recent Dumb federal budget could wipe out property owners, is evidence of the very convoluted organisational model of Townsville Enterprise, Townsville City Council and various advisory boards being established to direct Smart City initiatives.
If Townsville Enterprise is allowed to continue a convoluted agenda, in light of new smart technologies in government, energy, transport and manufacturing, it will be economic suicide for Townsville district property owners and residents. Unless restructured urgently in line with Smart Cities funding eligibility, international entrepreneurship and global enterprise investment pathways, Townsville districts will be neglected in future federal budget initiatives. Townsville Enterprise CEO, Patrica Ocallaghan provided a statement to the Townsville Bulletin confirming the federal budget did not address any of the priority initiatives identified in their pre-budget wish list, but pledged to continue working with the federal government on the Smart City Deal.
Property owners and rate payers are being fooled, as the current disjointed governance organisational framework is cementing Townsville as a social welfare dependent district, instead of fostering major industrial and infrastructure projects with the federal funding criteria set by the "City Deal" contract.
This federal budget in the context of the "City Deal" contract, is driven by "value-add" initiatives and it is biting property owners where it hurts the most, with reduced cash flows and valuations. This market and government dysfunction could force further value decline in property investments. With this fresh analysis undertaken by TREN, the property owners and stakeholders of Townsville North Queensland can forge a conclusive understanding of the impacts from the federal budget from local real estate investors and owner-occupiers.
Do you have an opinion about the federal budget? The TREN community wants to hear your story.
What feels like a drop of water on ancient stone carving out the future geometry of the earth's rivers and streams, the mass sum of Townsville's solar energy projects is making less than a drop in the national energy market even with the launch of the $155 million Sun Metals Solar Farm project, 15 km south of Townsville. The Korean-owned Sun Metals project comes on the back of the $250 million solar farm announced for construction on a disused mango farm in the Upper Ross last year, about 20 km south-west of Townsville. A facility of this capacity is expected to add 450,000 photovoltaic modules, which will deliver clean energy to 50,000 households. Over half a dozen clean energy power stations have been built across North Queensland in the past two years. Yet these power stations add less than 1% to the national energy market. Combined with the existing small-scale 1350 residential and commercial installations (although not supplying wholesale spot prices) across the City, solar energy is boosting Townsville's electricity capacity steadily enough that the perceptions of victory by non-fossil fuel proponents could have inspired right-wing politics to parade a fist full of raw coal through federal parliament this week. The additional solar capacity at Sun Metals will be connected to their existing 33/132 kV substation to supply power to their refinery, offering incidental net inflow capacity to the power network. However, their reliance on wholesale power will be reduced by up to 116 MWac as the extra one million solar panels being used will cover 130 hectares. This type of project is what is slowly reducing demand for consumption on the 540 trillion watts feed into the national energy market.
Image: Thanks to Inhabitat
The real estate investors in Townsville have to be wondering what the impact of these larger scales energy projects will have on the economics of accommodation and the cost of power supply in the broader community. After all, households and small business that are impacted by energy prices are also critical players in the recovery of the property market more broadly. The truth is these installations will have a negligible impact on retail power capacity and minuscule effect on prices. History might suggest that where a large investment in solar power equipment occurs, the retail price of electricity increases to make up for downward pressure on supplier cash flows. But while the demand for existing infrastructure maintenance overheads and replacement costs continues, prices have continued to rise in excessive of the annual Consumer Price Index (CPI). The Queensland Energy Minister, the Hon. Mark Bailey has made his pitch for more renewable energy projects flying in the face of federal conservative politics and local Townsville business leaders calling for urgent action on building a coal-fired power station in the region.
Premier Hon. Annastacia Palaszczuk with Queensland Energy Minister, Hon. Mark Bailey Image: Thanks CourierMail.com.au
Grandstanding on surpassing his election promise of supporting 40mW of renewable energy by announcing the fact that 300mW was delivered as part of his Solar150 policy, Mr Bailey is banking on competition and more solar production, the cost of which has reduced by as much as 80% since 2009 the State Minister claims. Independent customer satisfaction researcher and rating business, Canstar Blue, said that location is a major factor in electricity pricing. "The amount (price) energy companies charge for power is dependant on a number of factors, the location being one of them." The independent rating company also identified that the "Queensland Productivity Commission found that deregulation would boost competition and potentially lower electricity prices - and it's easy to see why when you compare average costs in Brisbane with those in Victoria, the most mature energy market in Australia. But so far overall prices show no sign of coming down, so it's important to find the best deal of the bunch currently on offer."
Queensland has the highest concentration of electricity suppliers in Australia, and over 50% of the capacity and demand is serviced by government-owned black coal-fired power stations. What's more, Queensland has a surplus of supply making the State a net exporter of electricity to other states. Energy prices are set by the retailers and the free market. Energy is still regulated across the board in regional and rural Queensland. However, only if use is below 100mW. This stops in June this year and the $500 million Community Service Obligation (CSO) paid by the State government to subsidise distributors like Ergon and limit energy pricing will be passed on to consumers. South-east Queensland has had deregulated pricing since July 2016. Although a federal labour's carbon price was to blame, the Newman government realised at the LNP election loss, increased electricity prices on households are political suicide, especially aggressive increases which putting a price on carbon caused. The sensitivity of price increases in a recession-ridden economy like Townsville, quite possible under a utopian clean energy agenda, means catastrophe at the ballot box is inevitable for pro-futurist politicians like Mr Bailey. Unless the $500 million SCO subsidy is renewed, prices are indirectly regulated for the benefit of regional Queensland in addition to the regulations that end in this June. However, Mr Bailey would find it difficult to justify politically why the $500 million CSO subsidy is renewed come July 2017. Because you would assume the government will be serving the people to keep retail prices down so Ergon need not increase their costs in regional Queensland. Trusting deregulation and the influx of retailers in regional Queensland would reduce prices to offset the CSO cuts and increased competition to the majority government-owned power generators, is inconsistent and unlikely with location constraints reported by the independent rating company, Canstar Blue. Townsville is hotter than Brisbane and power leakage, being great distances from base-load generators, is costing the State $130 million dollars per year in lost energy. But a $1 billion federal Northern Australia low-interest loan to a consortium of private and Chinese investors, who are now otherwise paying 6-10% interest on borrowings, would reduce the demand on taxpayers for government subsidies, practically eliminate wastage by power leakage, reduce the spot price of wholesale power by adding healthy spot price competition in the generator market, and serve the economic interests of North Queensland. With a combined clean coal/carbon offset revegetation program to achieve carbon reduction targets, an additional 100-200 mW capacity could put downward pressure on electricity prices with a new base-load power station. But most importantly, it would deliver North Queensland the necessary industrial muscle needed to secure its economic prosperity and lessen the need for subsidies from taxpayers.
As the Upper Ross and Sun Metals investments and future clean energy investments like them continue, the clean energy sector will inevitably seek to protect not just their ideology but their growing investor cohort seeking to secure and protect their ROI in the energy markets. Demand for energy has been steadily reducing as residential and commercial solar projects like Sun Metals come online and the Australian manufacturing sector has dwindled. The battleground between old money and new money (green certificates) is set to evolve into all-out warfare in the boardrooms and dare it to be said, in the unemployment centres of Townsville unless a sensible decision can be made by a rebellious climate industry to pragmatically serve the wellbeing of the entire community desperate for short-term mining and industrial jobs. "The Sun Metal project is set to commence in April 2017 and create 250 jobs in the construction phase as one of the largest solar farms in Australia", winning contractor Dr Paul Dalgleish, Managing Director and CEO of RCR Tomlinson said. Sun Metals reports that an extra 100 jobs ongoing will be employed but this is due to the investment of another $150 million increasing zinc production capacity by 20 percent. Sun Metals currently employees a total of 300 locals. To put this into perspective, Townsville is seeking to create 20,000 new jobs in the next 5 years. So Townsville is in a serious quandary on solar investment just as it is in big data, artificial intelligence and robotics, technologies that are likely to eliminate demand for processing labour despite the political headliners of job creation during construction. It's like the people are constantly being sold a cute puppy; cuddly and soft at first but we never stop looking for the stolen shoes in the yard. And it has been recurring like a bad nightmare or the American "groundhog day" for the past 6 years. Some would argue longer as politicians have become experts at breaking promises and pulling the wool of over voter's eyes. Further reading: Turnbull trio caught with smoking gun
There is a growing sense with the rise of One Nation and Trump that the extreme left has deposited so much social progress in Melbourne, Sydney and Brisbane post the Howard-era, that the entire green movement in Queensland backed by Mr Bailey is selling Townsville a cuddly pup and the drip of small broadly dispersed solar farms as industrial power stations. Employment for the construction of new technologies is temporary while skills and expertise in facilities maintenance, fossil fuel processing, business administration and technology programming are recurring and more sustainable. Not to mention however new skilled jobs that will be created in the digital economy offsetting industrial job losses. But these jobs are what is driving capital city growth and tearing the heart out of regional towns, where time and time again, talented trainees or graduate students move to the capital cities. Townsville needs industry and business that creates sustained employment for existing residents and sufficient employment for population growth, but the clean energy campaigners and smart technology campaigners by their nature are ardent in their beliefs of saving the planet and rescuing ignorant climate change-denying people from themselves. What the jealous and emotional teenager thinks and what the parents think are by nature two very different values, at least the circumstances are perceived differently, and the argument about right and wrong can become destructive and even threaten relationships. Instead of finding common ground, the arguments are based on who has the higher moral ground. One being to feed and secure the entire family and the other resist and fight for the freedom of ideology, which less than a decade ago, had control of the balance of power in federal parliament with the independents.
And it all comes down to power and control of everything. With such utopian and extreme mindsets playing the game, the wellbeing of the people is being defined around electoral affluence and the movement of the lobbyist elite, as Mr Bailey felt the need to deny his association with "latte sippers" and "champagne drinkers" in a recent statement. This is not the identity of solar users as he defended. But the reality of green campaigners and protesters hanging out on Brunswick Street in Fortitude Valley, or trendy boutique villages around Yeerongpilly in their cycling paints to plot their next alliance is happening. The opposition to these movements is bearing fruit in the United States where left-wing aggression is headline news. District and federal judicial officers are blocking the highest traditional authority in the system, the President of the United States. While in Australia the right-wing One Nation Party and Pauline Hansen may become a serious contender as the third major party in Australia the way things are going. Moreover, Townsville has been blessed with both clean energy and cleaner fossil fuel resources on our doorstep yet the ideologies and political leveraging of fail-safe governance and political extremism are crippling the opportunities of the Townsville economy and the prosperity of this region's people. Nearly 5.70-kilowatt hours per square metre of solar irradiation exists under the skies of Townsville producing practically zero CO2 into the environment. A massive asset to the local economy and the most abundant levels anywhere in the world. The sunshine state is alive and well. Of course a smart inclusion in any energy strategy for a nation and city over the next millennium. The Galilee Basin is blessed with the best quality coal in the world and over fifteen mining companies actively seeking to bring it to the global market, including Adani's new Carmichael mine, whom by some accounts may be in receivership any day now due to excessive company debt through its Indian operations. The CO2 emissions of the Galilee Basin coal are the best product compared to domestic and international standards, producing 1.1 tonnes of CO2 per megawatt hour of electricity generated, some 30% fewer emissions than Indonesian coal.
Image: Thanks to ABC
The fossil fuel industry, right-wing politics and Townsville's own News Ltd press, is lobbying for the $16.5 billion Adani coal mine project to proceed urgently along with a new coal-fired power station to be built in Northern Australia. Meanwhile, the chief executive of the Clean Energy Finance Corporation (CEFC), Oliver Yates, says coal-fired power would be "an inappropriate investment in exposing taxpayers to". Even the rules governing the eligibility of clean coal as an investment for the CEFC makes coal an unacceptable risk to taxpayers. Yet the Australian Energy Regular confirms Queensland's fossil fuel power stations are keeping the lights and cooling systems going across the nation during peak hours and excessive heat waves. While federal and local politicians are seeking to manage affordability and their appeal to the electorate, the increasing power of the anti-carbon emissions movement and clean energy capital raising bodies like the CEFC is overwhelmingly unfavourable to a politically dispensable economy like North Queensland. Most credible scientists and commentators are saying the cost of building coal-fired power stations, even carbon capture plants, compared to solar and renewables far outweigh the economic benefit to the community. But saying that to a jobs-hungry community like Townsville still getting used to being weaned off projects stimulation and a government funded economy, is nearly impossible. Just as the people of the rust belt of middle America gleefully elected the most unelectable President in Donald Trump, because they were sick and tired of becoming irrelevant to centralised control during an era of globalisation. Lacking vision in energy policy, meaning supporting any form of coal production, is tantamount to threatening the entire nation's future. This is the rhetoric of southern splinter journalists, incensed with utopian climate protection ideology and a dogged determination to prove sympathetic scientists right. And the reality of this point of view is that Townsville's economy, unfortunately, could reflect the experiences of the people of South Australia where "blackouts" and industrial scarcity is a way of life, while Townsville is promised jobs only to find out they are mostly casual, part-time or fixed-term contracts and perpetually being sold a cute puppy. Further reading: Industrial space critical to Townsville smart city future Get used to the fact the attitude of the left and the environmental movement is here to stay. Just as the attitudes of the politically correct advocating on behalf of racism, feminism, socialism, capitalism, etc. are here to stay. Ideas and what we think is a god-given right. Anyone with a twitter account has political influence and there are plenty of authoritarian voices with scientific profiles in their resumes actively claiming an ology, ism, doctorate, ist to their name. Perhaps a poor attempt at humour, but given a platform, conscientious people will continue to influence and disrupt politicians, courts, corporations and people seeking to derive their living from an industrial system built on fossils. For an ordinary family in Townsville seeking a good life, the fossil industry is their only prospect of income, which will continue to be the case for many decades to come despite technology advances. A new global order is fighting for supremacy and Townsville is in the heartland of the battle for power and control over resources, even self-determination, futurist ideology and utopian safety and security, neither of which are disconnected from the immediate pain and suffering of the community. Meanwhile, the paralysis of governments, institutions and agencies incapable of agility is likely to continue in the immediate future, impacting the certainty of jobs and economic opportunities for a bright City seeking to advance its claim as the largest economy in northern Australia. With the prospect of further delays in all industrial fossil extraction projects - dam building ventures included, and any industry business dependent on fossil fuel energy, further protests, court action and political grandstanding will remain important tactics by highly organised and sufficiently funded clean energy campaigners. Editorial attention by News Ltd supporting a coal-fired power station in the local Townsville Bulletin is a real measure of the frustration being experienced by a community with massive economic promise in what has become a perpetual "go and no-go" zone in the climate change and clean energy fight across the world. With the question still open as to the future viability of all coal and fossil power energy solutions in North Queensland, Townsville's aspirations to develop industry and jobs will be plagued with further uncertainty unless the citizens rise up and get behind pragmatic political and business leadership seeking to secure the funding promise of the $5 billion Northern Australia development fund. If recent history and events are anything to go by, it is difficult to see a strong, proud and caring regional community like Townsville lay down and let jobs and opportunities pass them over because of left-extremism has gained momentum with a green army under the stewardship of capital city elites dictating "it's the way things are around here."
OPINION: Townsville's future as a sports, entertainment and events centre for North Queensland has been secured with the announcement by all levels of government that the North Queensland Stadium will proceed to construction as early as May 2017 with expected completion before the 2020 NRL season.
The campaign by local leaders has been relentless over the past couple of decades. Without question, the will and energy of the City, depicted by local sporting and arts personalities such as Country Music Legend, Adam Brand and sporting legend, Johnathon Thurston is infectious as illustrated in the following promotion video.
The North Queensland Cowboys NRL Grand Final victory in 2015 certainly did the "yes" campaign no harm. North Queensland's victory became the catalyst for Prime Minister, Malcom Turnbull to announce a $100 million Federal Government contribution, after NQ Cowboys co-captain, Johnathon Thurston, effectively lobbied the government in his podium victory speech.
"Building a resourceful, resilient and technically superior enterprise culture in the City will ensure second and third tier employment and business growth for decades to come.",
Townsville Real Estate Blog.
Artist Impression: www.morethanastadium.com.au
The Prime Minister commented in the Sydney Morning Herald, that the Townsville stadium will do for Townsville what the Sydney Opera House has done for Sydney. This could bring a massive transformation by the way the rest of the world will view the City, one of the largest regional cities in Australia
Townsville Enterprise, North Queensland's commercial and marketing body, announced: "Expressions of Interest have opened today for principle consultants to put forward their design teams for the North Queensland Stadium."
The Townsville Enterprise press release identified the opportunity for local businesses to tender for the design and construction phase of the project with works estimated to cost $250 million, which will be administered by the office of the Minister for State Development, Dr Anthony Lynham.
Artist Impression: www.morethanastadium.com.au
The construction phase of this new signature North Queensland development is estimated to generate 750 jobs. Of course the local Mayor of Townsville, Jenny Hill is encouraging local businesses to 'strike while the iron is hot' to ensure the jobs and business revenues are returned to the Townsville economy. Yet the vision for global trading in the throngs of the current Information Age has been left out of the specific plans and objectives by the Mayor and State Minister. In fact, no international outputs have been considered despite the Prime Minister's reference to changing the way in which the international community views Townsville as a City.
Based on a revised Integrated Stadium and Entertainment Centre (ISEC) economic impact analysis compiled by Townsville Enterprise, the following estimates were identified:
$1.9B - ISEC will accelerate the development of the planned $1.9B waterfront redevelopment
1,650 jobs created in the construction phase
$130M in wages and salary in the construction phase
$675M in additional economic output in the construction phase
$5M annual gross value add once ISEC is complete
37,000 new visitors to the region each year
$2M annual visitor spend once ISEC is completed
The North Queensland Stadium has a scaled back scope, which will not include the Entertainment Centre, with less than half of the 1650 jobs being created as defined in the above estimates. This being said, an extra $1-2 million annual visitor spend once the project is complete is equivalent to the annual salary package of 50 full-time management employees.
We haven't seen the final designs but the location of the site is positioned on the waterfront of Ross Creek. The site is immediately adjacent to Reid Park, home of the annual V8 Super Cars Event. To the South is the southern access corridor (Saunders Street) into South Townsville and the City heart, and directly across Ross Creek from Honeycombs's Central and Holborn Apartment development on Blackwood Street, which includes a small cluster of existing food and entertainment shops. The head works footprint for the stadium is expected to connect these urban spaces to the stadium forecourts and promenades via a footbridge over Ross Creek.
The estimated 17-hectare parcel of land on the boundary of Saunders Street was owned by QR National, now purchased by the Townsville City Council, is the ideal site for a new international standard stadium. The 30,000 seat stadium would include 100 open-air corporate boxes and 25 enclosed corporate suites.
Of course, the big question for property investors is;
Will this national sporting and events stadium bring economic prosperity, and specifically, increased yields and capital growth to the local property market?
It will create jobs immediately which the City desperately needs. Townsville Chamber of Commerce, Stephen Motti said: "the stadium would boost businesses in and around the CBD" (Anthony Templeton, Townsville Bulletin). Townsville's unemployment reached 13.9 percent in April this year. Due to the number of skilled tradesmen and workers leaving the City for greener pastures, the population dropped in the tens of thousands in the last 12 months since Clive Palmer's Qld Nickel refinery declared bankruptcy. Unemployment dropped sharply this month to 9.7% due to people, skilled workers, abandoning the City. Also, the City has the highest bankruptcy rate in the country. A number of local developers are dusting off their plans for further residential development in and around the stadium site, including Honeycombs, Lancini Group, Parkside and others. For existing property owners of lower yielding apartments in the City precinct, the collateral developments are set to be rolled out by the local movers and shakers.
"This additional residential construction activity will stimulate short-term demand in the City from construction activity, but long term further increase in supply in the City market could keep vacancy rates above the 2-4% threshold. At this range or less, demand driven value increases, filter through the supply chain impacting more favourably on yields", stated Mr McLeod, Director of Rapid Realty Australia.
Mr McLeod also commented; "Unless sustained employment growth and business start-up investment occurs on the back of the stadium development, local business confidence improves and cutting edge innovation and technology developments are leveraged, the stadium development could be an impairment, further pushing steady and even bearish yields for investors."
The momentum risk for the Townsville political and enterprise leaders is that they may get caught up in the media attention and buzz of an unprecedented development for the City. "Group think" among the usual influences, planners and administrators are evident in the stated objectives of the project. Thinking it will be the 'silver bullet' that will solve all of the City's economic adversities is a massive mistake. It is not the be-all and end-all, but still a very positive development in the City which is screaming for real employment, entrepreneurship and economic growth.
Artist Impression: www.morethanastadium.com.au
Existing unit and house owners in the immediate City and fringe suburbs will see increases in rental inquiries, causing a reduction in time on market statistics. But a sustained increase is unlikely to occur with rental prices. Already, suburbs in the immediate area of the site such as Railway Estate, South Townsville and Townsville City have seen an increase in buying inquiries. Immature and even scrupulous investors thinking they will reap rapid capital gains from Townsville's property market are kidding themselves. But a prudent investor, disciplined for long-term returns, and knowledgeable with values and "street to street" targeting in Townsville at a median price of $336,000 compared to the national median of $800,000, is positioning themselves for favourable results in the long term. Townsville's median house price dropped 5.5% since June 2015.
Herron Todd White Townsville in Focus August 2016 Report
Herron Todd White, in their Townsville in Focus August 2016 Report commented that; "There is very little in the way of local stimulus or broader economic drivers that would indicate any short term change from this position". Broadly speaking the sentiment that had been building in the commercial and industrial markets has all but evaporated and these markets remain at the bottom of the market cycle."
The depth and breadth of the broader regional, national and international economic constraints, perpetuated by the conventional wisdom of politicians, economists and Townsville's mastermind groups that base policy on a scarcity of resources is a risk. Although counter-intuitive, this prevailing mindset is economic and political suicide in an Information Age. Leading international economist and author of multiple books including the "The Next Millionaire", Paul Pilzer, says the scarcity model is incongruent with the modern Alchemist Economic approach of accurate forecasting.
This conventional wisdom, in contrast to the Alchemical Economic models, is the belief that the region's resources are limited based the City's industrial niche of education, administration and management, real estate and manufacturing and of course mine processing. These sectors are the top sectors contributing to Townsville's Gross Domestic Product (GDP).
Artist Impression: www.morethanastadium.com.au
Change and innovation in technologies cause the expansion to economic capacity and capability, including infrastructure investment. Instead, state and local planners and policy leaders are seemingly fixated on government investment in "real estate" infrastructure as the treatment for sustained jobs creation. This is a short-term purpose, however, again programmed around a scarcity conscience, political agenda and time frame. This is evident in the constant appeal for government funding by local institutions like Townsville Enterprise, council, politicians and business influencers. Just this week as a case in point, The Honorable Coralee O'Rourke, Minister assisting the Premier, The Honorable Annastacia Palaszczuk said; "In the future, footy fans will come to a North Queensland Cowboys game and stay for a holiday and the North will be able to attract a variety of events that will attract new visitors and investment to the region." Since 1995, Townsville has had an NRL events calendar attracting footy fans to the City. Many visitors stay with family overnight and then return to their home. By definition, this is not a holiday stay.
For property buyers, long-term investment in Townsville is prudent with the City likely to attract further lifestyle capital from the legacy of the principal stadium development, at least in the immediate City fringe precinct. Flow on investments, which will include boutique retail, residential and commercial developments in the City, and could extend South to the Dean Street precinct, including the old industrial railway yards. It too has been earmarked for an Integrated Entertainment Centre, indoor events and transport blueprint because the existing entertainment centre is aged and not certifiable.
Mr Turnbull's vision of a Sydney Opera House concerning the stadium is duplicitous. This vision statement is the type of statesmanship expected of a Prime Minister, but it could be seen as appeasing the Canberra elite. The City's civil leaders working locally but thinking globally is not enough. We need now, more than ever, to have an international thinking and working mindset. This Turnbull vision would be better served in infrastructure that could add profound value to the global and domestic trading capacity of the City. Instead, the Sydney waterfront vision would be better directed to the waterfront at the entrance to the Townsville City port and Strand precinct.
This waterfront vision presents a great opportunity to demolish the "swamp", which is the name given to the ageing entertainment centre and home of the now defunct Townsville Crocodiles Basketball Team and develop an architecturally appealing Commemorative War, Marine Nature and Indigenous Arts Theatre on this Opera House style site. The development would create a monumental signature image, unique in architecture, character and function on an international scale and appealing to our largest trading partners and markets in China, United States of America, Japan and Europe. It would also add attraction demand inflows for the tourism, arts, education and innovation sectors, instead of the narrow events and domestic tourism focus outlined for the stadium.
Sydney Opera House, Australia
The strengths of Townsville's location to the Great Barrier Reef, indigenous arts and heritage, and the strategic importance and operational role Townsville played during World War 2; battles of the Coral Sea, Kokoda and the broader Pacific campaigns is epic in a historical context. Yet this unique North Queensland story is not showcased anywhere in the nation expect the National War Memorial in Canberra, some 4000 kilometres away.
This harbour-side location, which includes the existing "The Ville" Casino, offers a unique and unprecedented opportunity to attract tens of thousands of tourists to Townsville from all over the world, and capitalise on a massive $9 trillion and growing travel industry.
The North Queensland Stadium in good time will be famous for its beloved NRL stars. But more potent would be the stadium's catalyst impact creating an additional lifestyle and functional economic developments with a far-reaching international appeal. A gauge of the appeal of Townsville's military history will be tested on 15th of October 2016 with the Defence Air Show. Below is the objectives on the Queensland State Development website http://www.statedevelopment.qld.gov.au/major-projects/north-queensland-stadium.htmlfor the stadium project.
Queensland State Development Stadium Objectives
Attracting more people to the City to be amused, entertained and educated is fine economic commentary. Building a resourceful, resilient and technically superior enterprise culture in the City will ensure second and third tier employment and business growth for decades to come. Unfortunately, the Queensland State Development Objectives fall short of this bold vision.
Visionary leaders could emerge and flourish in this environment of adversity and infinite opportunity. Following are some of the favourable conditions for Townsville's competitive advantage, including;
Northern Australia development zone investment maturing
Free trade arrangements with China and the United States not long dry completed
Federal Government seeking private capital sponsorship for better terms of trade infrastructure
Scaling back of the Aquis Resort and Casino Development in Cairns due to casino licensing restrictions.
Property investors are encouraged to maintain a diligent lookout for either civil, political or business leaders that have the courage, purpose, plan and associations to leverage the political, trade climate and economics necessary for contemporary infrastructure investment, both digital and "real".
With seemingly impaired vision at all levels of leadership, the Townsville property market is not expected to flourish off the back of a national sports stadium development. By and large, the existing 1300 SMILES Stadium, which hosted concerts and sporting events at Willows, is being replaced. The North Queensland Stadium is far from being a "greenfield" development. Significant value-added trading infrastructure, resources and technologies, combined with innovative digital information and entrepreneurial industries, must be leveraged within the next 5-10 years. Bringing back the 20,000 people that have left the City in the past 12 months, reducing unemployment and cultivating a digital and industrial driven economy is critical. A positive sign for property investors is not government funding program announcements, but the cultivating of more digital business Joint Ventures with international, national players and local business and institutions. This must be acted upon in order for Townsville investors to decide the feasibility of a short to medium term trigger. Otherwise, the Townsville property market long-term investment and holding strategies will continue into the foreseeable future.
References:
Queensland Government Statisticians Office - www.qgso.qld.gov.au
The Reserve Bank of Australia (RBA) has shocked the markets
today with a cash rate drop to 2.25 percent after being left on hold at 2.5
percent since August 2013.
The changing conditions in the housing market across the
country featured in the RBA policy announcement today as a measure to assess
and contain economic risks, typically driven by an easing in capital city
prices.
RBA Governor Mr Stevens said; “Credit growth picked up to
moderate rates in 2014, with stronger growth in lending to investors in housing
assets. Dwelling prices have continued to rise strongly in Sydney, though
trends have been more varied in a number of other cities over recent months.
The Bank is working with other regulators to assess and contain economic risks
that may arise from the housing market.”
The overwhelming majority of economic commentators expected
the RBA to leave interest rates on hold. Based on the finder.com.au survey of
30 economists and commentators, they found that 28 expected the cash rate to
remain unchanged.
Mr McMullen from RAMS said that with consumer confidence and
inflation low, the RBA would cut rates to help boost the economy and depreciate
the Australian dollar.
Consumer confidence has been weaker, cheaper prices in the
global oil market and the weakening of the Australian dollar were major factors
in the decision.
“Market sentiment has fundamentally shifted over the past
two months as oil prices have plummeted and concerns about deflation in Europe
grow. This has led to markets expecting 0.50 percent in the rate cuts in the
first half of 2015, “Mr Caelli from ME Bank said.
Today’s rate cut would normally provide a boost to the local
market and lead to improvements in building starts if it were not for low
business confidence and high unemployment numbers in the local North Queensland
market, Mr McLeod said from MCINC Investments and Consultancy.
Providing cheaper mortgages for first home buyers and
existing mortgage holders on variable rates is a relief for the local market, Mr McLeod commented.
However, in a low confidence market positive downward
movements in cash rates need support by businesses leveraging a lower Australia
dollar to attract export dollars, and more favourable private and government
investment in critical infrastructure and facilities developments to kick start
the economy with more jobs and cash flows, Mr McLeod said.
Reflecting on 2014, the Townsville real estate market experienced significant challenges with record unemployment, higher vacancy rates for rentals than the City has ever experienced in recent history, and a slowing economy with record low business confidence. Reductions or even a correction in median prices for houses and units available on the rental market has caused anxiety for landlords and investors alike. This year has been a favourable period for consumers, both renters and buyers.
Strata unit median sale prices have reduced by 12 percent while house prices increased by 3.5 percent. Economic conditions contracted to levels ofunprecedented low confidence for business while the national fiscal framework left the cash rate on hold at 2.5 percent for record consecutive periods.
The article "ready the spinnaker - the winds of fortune" provided some important insight for investors in the prevailing conditions in the market. For those investors seeking an indication of cycle timing and favourable movement in the market, this article offers some valuable direction.
Townsville Real Estate Blog (TREB) broke a leading story about a Gold Coast based building contractor having their licence withdrawn by the newly established QBCC. Contractors and investors experienced the trauma of financial losses linked to southern spruikers promoting boutique residential investments in the City. The story was picked up by main stream media including ABC national radio.
December 2014 brought the introduction of streamlined legislation for real estate professionals, both agents and auctioneers, that deregulated commissions for residential sales. The Property Occupations Act 2014 brought down the curtain on decades of formulated commissions.
An opinion piece highlighting the role of residential land and unit development moguls in the City impacting the over supply of housing attracted interest that propelled the readership of the TREB to over 12,000.
The TREB now boasts a profile and position in the content creation community for real estate professionals that is second to none. We are now the most popular independent blog recognised for grass roots research and dependable commentary about the Townsville real estate market.
We look forward to bringing you more facts and opinions about the Townsville real estate market, the players and risks, opportunities and threats that we trust will assist you with your own research, planning and decision making.
Townsville offers an extraordinary opportunity for investors to place their wealth creation assets in the City. Citizens enjoy a tropical lifestyle and family friendly community desired by many people across the globe. We live in a beautiful and resourceful part of the world for which we all can be grateful.
TREB wishes you and your families, friends and loved ones a wonderful Christmas. Be safe if you are travelling over the holidays. We look forward to a more prosperous 2015 for our readers and supporters. The TREB would like to thank our readers for their support this year and hope for continued support in 2015 with greater interaction and contribution from our readers. It is a privilege sharing exciting and interesting stories with you about the Townsville real estate market.
