Opteon Central Queenslandconsortium which involved the former Qld Premier, Campbell Newman. This was...

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Opteon Central Queensland

Inside This Issue

Office Locations

Whitsundays

Mackay/ Commercial/ Industrial

Rockhampton

Mackay

Wide Bay – Bundaberg

Wide Bay –Maryborough & Gympie

Gladstone

Whitsunday

Rural

Biloela

Contact us

February 2017 Edition

Visit our website www.opg.netOffices: Airlie Beach | Biloela | Emerald | Gladstone | Wide Bay | Mackay | Rockhampton 2


Opteon Property Group (OPG) is a national provider of valuation and property advisory services. With 75 officelocations nationwide we have a team of over 800 staff including more than 500 valuers. Our specialist team canassist with all manner of valuations, from residential mortgages to more complex valuation assignments. Ourintegrated valuation and property advisory services are built across eight national business units: Commercial,Residential, Government Services, Agribusiness, Plant & Equipment, Advisory, Tax Depreciation and QuantitySurveying. The extensive reach of our valuation and advisory network enables us to provide fast, reliable andindependent valuation and advisory services for any property type.



Well 2016 is now well behind us and we hope Santa left some confidence under the Christmas tree to start the new 2017 year off well.

Transactions are still occurring and developments are still being planned for our region.

A property at 91 Connors Road, Paget sold in July 2016 for $9.7 m to a consortium which involved the former Qld Premier, Campbell Newman. This was the company’s first foray into the Mackay market and with UGL as a tenant with a long remaining lease term the income stream is assured for at least the next 8 years. Estimated yield in the vicinity of 9.1% net.

It was also announced recently that funding had been secured for the CQ University Sports Precinct. Funding levels are in the vicinity of some $20 million with the development comprising an Aquatic Centre, Gym, Indoor sport and recreation facility, a site for a future child care centre, café and sports bar and several sporting fields. Funding has been secured from several levels of governments with the first sod anticipated to be turned some time in 2017.

In December Toyworld marked a return to the retail landscape with opening a pop up store in Caneland for the run into the Christmas period...let’s hope trade was good and they stay.

Other notable developments announced were the following developments:

• A new cinema complex at Caneland Shopping Centre. An application was lodged with Council with construction anticipated to commence in 2017.

• The new ICON Oncology Centre was announced to be constructed at Mount Pleasant near the Mater Hospital. This is anticipated development in the $20 million range.

• A proposed solar farm to be developed at Paget.

• An extension granted for a small industrial subdivision (39 lots) at Production Avenue, Paget.

Mackay Commercial/Industrial

Your Local Contact:

Paul Krause

07 4957 2821

91 Connors Rd, Paget

Proposed ICON site



Some notable recent sales include:

Greyhound Facility at Gateway Drive - $2,650,000 August 2016.

IGA Complex West Mackay - $9,250,000 December 2016, est yield some 7.06% net and was purchased by a Private Investor.

The new Dudley Denny Library opened recently and has been well received by the public. It is a modern facility with interactive displays and modern appearance.

And the news to be pleasing to all is the announcement of the Adani Coal mine is to commence operation. Mackay has been named as the maintenance hub for the company which will auger well for the area of Paget and the service industry sector. Other industries which will also do well with be support industries of rail and the Port. Let’s hope this adds fuel to the fire for a good 2017.

Mackay Commercial/Industrial…cont’d

Your Local Contact:

Paul Krause

07 4957 2821

Greyhound Facility, Gateway Drive

IGA, West Mackay

Dudley Denny Library



Rockhampton

Your Local Contact:

Adam Bray

07 4927 0893

The last quarter of 2016 witnessed some confidence returning to the market, mainly due to recent announcements from Adani Coal and an increase in commodity prices.

We have witnessed an increase in buyer activity with agents reporting properties in sought after locations selling within weeks of being placed on the market, multiple offer situations and properties selling over listing price. We have not witnessed this kind of activity in the Rockhampton market for many years.

Gallery Apartments started construction in early December, with construction expected to take approximately 12 months. The project has over 40% unconditional under contracts with all buyers being owner occupiers.

Artist’s impression – Gallery Apartments



Mackay

Your Local Contact:

Gemma Hulme-Moir

07 4957 2821

The Mackay residential team remains optimistic that we have seen the bottom of the market across most localities in the residential sector. While there is still some uncertainty about the year ahead, there has been a lot of positivity around prices stabilizing, lower vacancy rates, increased listings and shorter selling periods. Local agents are reporting an increase in general interest in the market, which is a good sign in the New Year.

The Mackay residential market has been showing signs of easing in values over the last 3 years from 2014 to 2016. Below is a graph depicting the median sales price growth chart for three main suburbs in the Northern Beaches. The last 12 months saw one of the tougher years for residential values in Mackay, with value reductions evident amongst most suburbs. The graph below outlines the median sale prices across these suburbs in this time frame and considering all factors, it is a positive reflection for 2016.



Mackay…cont’d

Your Local Contact:

Gemma Hulme-Moir

07 4957 2821

The Mackay residential market is still being affected by negative factors including an oversupply of investor stock and an active mortgagee market. The oversupply has put downward pressure on prices in both sales and rentals.

The previous 6 months has seen some relief with a reduced vacancy rates and an increased number of sales occurring across most suburbs. Local real estate agents have reported faster selling times and a substantial increase in interest in listings.

As 2017 unfolds, we expect to see an increase in the level of sales in Mackay. With values lower and confidence returning, we are optimistic the residential property market will regain strength across the region.



2016 saw the residential market in the Bundaberg region remain flat with a slight decrease in value for both units and houses.

The median house price fell from $298,000 in 2015 to $295,000 in 2016 and the median unit price fell from $270,000 in 2015 to $250,000 in 2016.

Good news was that the rental vacancy rate fell to 3.8% for the December quarter in 2016, which paired with strong rental returns is ideal for investors.

There are a also a few major projects that are continuing into 2017 including the Bundaberg Sports and Community Centre, the Rubyanna Wastewater treatment plant and the Knauf Plasterboard plant which should bring improved confidence to the Bundaberg market.

Wide Bay - Bundaberg

Your Local Contact:

Alexandra Marles

07 4123 2499

Bundaberg Sports and Community Centre

Rubyanna Wastewater Treatment Plant under construction

Artist’s impression – Knauf Plasterboard plant



Wide Bay

Your Local Contact:

Tracey Werder

07 4123 2499

Maryborough

The most recent data released by the REIQ shows the median sale price for the residential house market in Maryborough has fallen 7% from the September 2015 quarter to September 2016 quarter. The annual median sale price is $187,500 which is down 5.1% compared to 1 year ago and down from $228,000 compared to 5 years ago which shows a decrease of 17.8%.

175000

180000

185000

190000

195000

200000

0

10

20

30

40

50

60

70

80

Qtrly No. Sales Qtrly Median Sale



Wide Bay

Your Local Contact:

Tracey Werder

07 4123 2499

Maryborough…cont’d

Although the REIQ has not yet released data for the December 2016 quarter, research indicates that the median sale price in Maryborough is around $210,000 with 43 settled sales indicating 2016 has ended better than the previous year and up from the September quarter.

The highest recorded sale in Maryborough for 2016 was at 354 Ann Street which sold for $445,000 in May. The property comprises a 1917 built, detached high set Queenslander dwelling, of timber construction, with a corrugated galvanised iron roof. Accommodation comprises 4 bedrooms, 2 bathrooms and detached garage for 2 vehicles. Ancillary items include in-ground swimming pool, 27 sqm rumpus room, clothes line, well maintained and presented lawns and gardens, boundary fencing of mixed materials, concrete driveway and concrete paving. Living area 200 sqm, car area 44 sqm, outdoor area 97 sqm and other area 27 sqm. Site area 1,865 sqm. The residence is a well known local landmark known as 'Charlcombe'. Property sold mortgagee in possession.

The following shows the median rents over the last four quarters for houses:

‘Charlcombe’



Wide Bay

Your Local Contact:

Tracey Werder

07 4123 2499

Gympie

The residential house market in Gympie has seen a different picture. The median sale price in Gympie has shown an increase of 10.4% from the September 2015 quarter to September 2016 quarter. The annual median price is $242,000 which is up 0.8% compared to 1 year ago and only down very slightly from $242,500 compared to 5 years ago which only shows a very small decrease of 0.2%.

$215,000

$220,000

$225,000

$230,000

$235,000

$240,000

$245,000

$250,000

$255,000

0

10

20

30

40

50

60

Qtrly No. Sales Qtrly Median Sale



Wide Bay

Your Local Contact:

Tracey Werder

07 4123 2499

Gympie…cont’d

Our research indicates that the median sale price in Gympie for the December quarter is around $230,000 with 61 settled sales recorded. Although there seems to have been some increase throughout the year, data available is indicating that 2016 ended slightly down on the previous year and down on the September quarter.

A notable sale in 2016 is of 40 Red Hill Road which sold for $600,000 in May. The property comprises a renovated, 1900 built, detached two storey dwelling, of timber construction, with a corrugated galvanised iron roof. Accommodation comprises 7 bedrooms, 4 bathrooms and attached garage for 2 vehicles. Ancillary items include in-ground swimming pool, covered outdoor area, children's playground, well maintained and presented lawns and gardens, full boundary fencing and concrete driveways. Site area 1,940 sqm.

The following shows the median rents over the last four quarters for houses:

40 Red Hill Road



Gladstone - Residential

Your Local Contact:

Mark Galway

0498 451 700

The Gladstone Region residential market struggled through the third quarter of 2016 with further decreases in capital and rental values. The residential property market in the Gladstone region remains slow, with employment opportunities continuing to be limited and job security considered to be low. This continued to have a negative effect on the local property market throughout 2016. Both the median sale price and median rent fell for the September 2016 quarter.

Sales volumes of houses dropped slightly in the September 2016 quarter in comparison to the previous quarter. House sale volumes are down significantly in comparison with the corresponding September quarter of 2015 whilst residential unit sales remained very limited through this period. Sales volumes of units decreased through the third quarter of 2016, however with such a small number of sales for both periods, there is not enough data to derive any significant conclusions. With such workforce instability and uncertainty coupled with an over-supply, it is expected unit sales numbers to continue to be very low.

Rental values continued to decline also through this period in the Gladstone Region in comparison to the previous quarter and from the corresponding quarter in 2015 for both houses and units.



Gladstone - Residential…cont’d

Median sale prices of houses fell for the September quarter of 2016 by a staggering 17% from the previous quarter for houses in the Gladstone Region. It is also down 20% on the corresponding quarter in 2015.

The Gladstone Region residential rental vacancy rate continued to improve through the September 2016 quarter for the second quarter in succession to 8.9%, down 1.3% from the June 2016 quarter. It is up 1.8% from the corresponding quarter of 2015.

Your Local Contact:

Mark Galway

0498 451 700



The Department of Natural Resources & Mines has 24 resorts registered on leasehold land in the Great Barrier Reef Marine Park. Two of the most well-known, Hamilton Island and Hayman Island, have become larger and benefited from upgrading to meet the peak and troughs of tourist trends. Last year Hamilton Island advised during school holiday periods of close to 100% occupancy which is an exceptional statistic given the state average for holiday properties hovers around the 65% - 70%.

Of the 24 leasehold resort properties 13 are currently trading and open for business and the remaining 11 resorts are closed. The Department of Natural Resources has advised that 3 resort leases have been issued Notice of Intention to Forfeit since October 2015 and 9 of the closed resorts have plans to redevelop.

Daydream Island is owned by Chinese Capital and Investment Group and will shut the Island in 2018 and commence a major redevelopment and room upgrade. Hook Island under ownership from a company associated with David Mariner remains closed. Long Island has 3 small resorts with two closed and one open. South Molle Island was sold to Chinese Capital and Investment Group last year and is currently closed.

Increasing flights into the Whitsunday and Hamilton Island airports have seen tourism arrivals in the Whitsunday region increase. Queensland Tourism has released numbers for the September quarter 2016 which showed that domestic overnight visitors increased by 25% over the year to 516,000 and international visitors increased by 9% to 229,000. Reopening island resorts in the region would be a benefit to the local economy and the operators can be confident of customers.

Whitsunday

Your Local Contact:

Tim Adams

07 4948 2966

Hayman Island

Hamilton Island



Rural

Your Local Contact:

Justin Robert Smith

07 4957 2821

Australian Food and Fibre (AFF) has been in negotiations to buy ‘Koramba’ (below) for a little over $100 million. The Goondiwindi farm covers 14,166 hectares including 5,400 hectares of flood irrigation used primarily for cotton. The property has 31,105 megalitres of water and a cotton gin with a capacity for 140,000 bales. ‘Koramba’ is being sold by United States interests.

Capella property ‘Matilda Downs’ (below) has sold under the hammer for $4,750,000. The property covers 2,312 hectares of which 1,400 hectares is dry land farming country. The sale reflected $2,054/hectare.



Over the last month we have noted a slight increase in the level of residential transactions in Biloela. These have been for the medium to lower end of the market with well-presented dwellings selling to a narrow and generally selective market segment. Even some of the smaller resource towns around the district have noted some sales including Baralaba and Theodore that have seen a very low number of sales for several years.

We continue to see some limited enquires in the town of Moura but these appear to be from be local workers who are currently renting and are now looking at taking advantage of the multiple Mortgagee sales. We have seen some better quality stock in Moura also go under contract however these are at levels that are below half the value for when the market peaked.

The commercial market within the region has been slow with several contracts falling over in the last couple of months. The movement in rural properties has also been steady. We are aware of several sales that are not settled of smaller properties. One such sale is a small irrigation property between Biloela and Thangool that appears to support the sound demand for irrigation properties.

Biloela

Your Local Contact:

Murray Davis

07 4957 2821

Residential Biloela property under contract



Airlie Beach

7/400 Shute Harbour Rd

Airlie Beach QLD 4802

Ph: (07) 4948 2966

Biloela

54 Callide St

Biloela QLD 4715

Ph: (07) 4995 6690

Gladstone

Ph: (07) 4972 1656

Wide Bay

5 March Lane

Maryborough QLD 4650

Ph: (07) 4123 2499

Mackay

14 Victoria St

Mackay QLD 4740

Ph: (07) 4957 2821

Rockhampton

3/145 East St

Rockhampton QLD 4701

Ph: (07) 4927 0893

Central Queensland

Contact your local valuation & property advice expert today.

Opteon Central Queenslandconsortium which involved the former Qld Premier, Campbell Newman. This was...

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