Port Douglas Business & Property Sectors Changing Fortunes
By Cassandra Pulver
Published Friday 10 July 2015
“It’s a fantastic time for anyone thinking of investing in Port Douglas at the top end” says Raine & Horne Port Douglas agent Barbara Wolveridge.
The RBA are in “wait & watch mode’ after having delivered 50bp (basis points) of monetary policy cuts in H1 (first half of this year) and the central bank expressed continued concern over the exuberance of the housing markets in Sydney and Melbourne.
Despite APRA’s Chairman Wayne Bryce stating a housing “bubble” was hard to define and identify, but risks were rising, given the low interest rates and high levels of banking competition, causing APRA and ASIC to target banks pursuing the most aggressive lending strategies, there remains a growing attraction in the business and property sectors in Port Douglas.
According to Michelle Singer’s article that appeared in last weekend’s property section of the Weekend Australian Review, Port Douglas is maintaining its “tropical attraction” in the business and housing markets beyond the GFC.
In the article several Port Douglas business and real estate operators expressed that there was renewed market confidence in their sectors which indicates a slow but promising outlook since the GFC.
Barbara Wolveridge from Raine & Horne stated that it’s a fantastic time for anyone thinking of investing in Port Douglas at the top end stating that the luxury property market is starting to see an increase in quality listings and genuine buyer interest from professionals, retirees and expats.
“The market is definitely changing. There are lot more people coming into town now. There’s about a 25% increase in the lower end market so now is a good time to get in. The high end market was at a low for a long time but so many out of towners are coming in from Melbourne and Sydney in particular from Adelaide for a sea change and they are around the 40-50 year old age bracket. Things are looking good.” Barbara said.
Long-time resident and agent Tony McGrath has seen some changes since 1986 especially since 2004/2005 when the market peaked.
Commenting in the article about the new generation of buyers in the high end market he says that it’s not about the money at that level. It’s about where the vendor or buyer is in their life.
“The market has been through a very flat period. High end properties will not receive the prices they would have 10 years ago. Something that was $7million or $8million then might fetch $5million or $6million today. So if a vendor has been sitting on something for years there is now an opportunity to sell but they have to give something to buyers. The vendor and buyer need to be rational on both sides and consider whether the market fits with their current lifestyles. There is renewed market confidence growing from the bottom up driven by low interest rates.” Tony Said.
Vicky Kurth from Port Douglas Weddings and Hire also stated in the article that the wedding industry is booming in Port Douglas, stating that they are so busy, with three weddings on that Saturday. She stated that Between April and December they will oversee no less than 80 weddings at various locations around Port Douglas stating the peak wedding season has begun, and business is better than ever.
“It is obvious Port Douglas is picking up and the wedding market is playing a big part in this. The cost of an average wedding in Sydney or Melbourne for around 50 people will cost approximately $50-$60K, while in Port Douglas it could cost approximately $25K.” Vicky said.
No doubt there is a ripple effect on the business community with the increase in weddings to the region. “Other businesses in Port Douglas benefit from weddings, even if they don’t realise it. We are about creating destinations weddings”. Vicky said. What traditionally would be celebrated over one evening, “a destination wedding can be celebrated for up to 4 or 5 days” Vicky said.
There is no doubt that apart from the weather and cost factors, we have high quality venues, caterers, regional produce and food and tour operators that value add to a destination wedding which flows on to economically benefit the Port Douglas business sector.
In the article Anthony Halas, chief executive of Australian home-grown swimwear and leisure retailer Seafolly, says it is a unique Australian up-market tropical destination that has great appeal that will remain popular in the years to come.
While the full impact of the RBA cuts remains to be seen and APRA continue flagging the heightened risk in the property market, Port Douglas Business and Property Sectors are benefiting from an immediate ripple effect while demand is high, median house prices are on the rise and the forecasting of a buoyant outlook in our region fosters continued economic confidence and interest in the Port Douglas region.