De-amalgamation and the property market
Monday 10 December 2012
De-amalgamation and the property market
The additional cost to ratepayers should de-amalgamation occur is unlikely to have a significant impact on the region's property market, according to two leading Port Douglas Real Estate Agents.
Alan Crossman of Ray White Port Douglas told The Newsport that when speaking with potential clients, rate cost concerns are overshadowed by those held over body corporate fees.
"It's not a major concern from prospective buyers that I'm aware of," he said. "They're not bringing it up whereas they would on body corporate fees. Rates don't come to top of mind by comparison."
He admitted the predicted rate rise on de-amalgamation of around $700 in the first year and $462 thereafter "...is going to be another negative that we would have to overcome."
But added: "For most purchasers, whether the status quo remains, or whether we de-amalgamate, will not have a great influence on the real estate market."
Mr Crossman said investors have been returning to the Port Douglas property market in 2012.
"This year has been a particularly good year for occupancy for holiday and permanent letting so the income that a property has earned has been better this year.
"Income figures are looking better, and generally there seems to be a change in attitude where buyers are thinking now is the time to buy."
Mr Crossman said he expected the improvement in the property market experienced this year to carry on in 2013.
Interestingly, Mr Crossman said his day-to-day dealings with Cairns Regional Council in property sale matters have been much smoother than that of the former Douglas Shire Council.
David Cotton (pictured) of Raine and Horne Mossman and Port Douglas reiterated Mr Crossman's assessment of the property market currently.
"The last three months has probably been the best three months that we have seen in the last three years," he said.
"I think people are finding confidence in the marketplace again. They're realising that the prices that were around five years ago are gone. A lot of vendors have changed their prices to meet the market."
Mr Cotton said that while potential purchasers make comment on rate costs, it ultimately wasn't a deal-breaker.
"A lot of people understand there are a few reasons as to why (rates are higher). We're a sprawled Shire with not a lot of people, and my understanding of economics is if there are less people it's going to cost more to run a council."
He said that while the additional costs predicted for ratepayers would have a short-term negative impact, there would be opportunities to recoup that money with new opportunities under a Douglas Shire Council.
"You've got to look at the long term not the short term. $700 is going to hurt everyone's pocket, everyone is struggling in the Shire as it is, the old Shire.
"There must be so much employment in this area, that could stay in this area without the Cairns Regional Council prostituting it out to the Cairns people.
"If you look at $700 a year, you'd like to think with the Douglas Shire reinstated you might get that much more work instantly," Mr Cotton said.