Chinese investor snaps up town block
REAL ESTATE
PORT Douglas realtor Steve Doble may be cautiously optimistic, but does believe there is greater international interest in this area following his recent Chinese acquisition involving a block of land on Mowbray Street that sold for $800,000.
In responding to whether Port Douglas is no longer the best kept secret and overseas investors are looking seriously at this part of the world, Doble said he did not expect to see a major rush specific to Port Douglas or the Shire.
“But in a rising market, opportunistic buyers become more active or speculative. The Great Barrier Reef is clearly our most massive drawcard and perhaps the Chinese reinvention of Pelican Inn to be a dive centre; and investments in the Sheraton Grand Mirage Resort Port Douglas has raised some greater international awareness of our local opportunities.
“Then, of course, there is the proposed redevelopment of the marina to take into account,” said Doble, whose specialty is property sales and marketing with LJ Hooker Port Douglas.
Doble said the sale involving a Chinese investor came about after he was initially contacted by their Sydney-based negotiator after she had visited the site, and after seeing it marketed “on one of our 110 real estate websites that we promote”.
In terms of how we are positioned – locally and overseas – Doble has a number of interesting observations regarding Port Douglas as a whole.
“In responding to why we are so attractive to potential overseas buyers, I think back to a university study which surprised many people.
“The summary findings identified that locals thought visitors came here for the Reef, rainforest, climate and the beaches. Yet, it was the ambience and relaxation that figured high on the list and the rainforest at the bottom.
“So the way we are as a shire and our friendly welcoming is a key to our attractiveness,” he said.
He added our area has diverse beauty which is highly marketable but does not feel that those who are attracted actually end up experiencing it all, kicking back sometimes takes over.
“We have some high-end properties, but we also have a property begging opportunity and I think some people like to reinvent or rejuvenate key locations for their enjoyment (eg holiday let property investors).
“And it’s worth noting that overseas buyers are a bit limited by Foreign Investment Review Board (FIRB) rulings, and although many who visit would like to invest, they are unable to do so unless it’s a new development.”
Doble says his company, LJ Hooker, sees itself as Australia’s most progressive and recognised brand and is exposed to more than 100 international real estate markets.
“We tend to centre on where Aussie ex-pats are and certainly China offers a massive market where, if we only touched the surface, it could be huge.
“There are some similarities to the growth to our FNQ area in the Japanese market 20-30 years ago especially when the Japanese started to become ‘free independent travellers’ making their own location and activity choices rather than the sardine tin package tours only.”
The newly-planned marina redevelopment, which Doble sees as “absolutely fantastic”, could be an ideal opportunity for overseas investors, despite the FIRB rulings.
“It exposes another visual variant of our landscape to enjoy and spreads business wider than just Macrossan St. As it is a new venture the FIRB rulings may allow overseas investment in the project.
“I think there will be existing Port Douglas property owners who will trade what they have, to something new so they will sell and re-buy. It creates another ‘marketable’ angle for the area and may help increase the boating, reef and fishing industries as well.
“I can’t see it affecting general property values but it may well put extra upward pressure on weekly rental values when the influx of extra workers arrive,” said Doble.
In reviewing the past year, Doble said sales of residentially zoned properties, especially houses, has been a shining light in the port ahead of the general holiday/tourism-only zoned properties.
“In the past three years or so, housing has probably increased in value around 25%, perhaps 30% in some sectors.
“Residential units and villas have possibly grown by 10%. Holiday let overall has just started to grow, with top returning performers doing very well but overall there is still too much competition from competing stock for the number of buyers for values to change much.
“Also, Port’s permanent population has grown in recent years placing demand on the residential stock.”
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