It has been said on many a recent occasion that the primary drivers of Queensland's economic change over recent times has shifted from the fallen mining and resources investment boom of yesterday toward a resurgence of the tourism industry in Queensland. With the devaluation of the Australian dollar it’s a case of out with mining town good fortunes and in with tourism towns, particularly for Queensland.
TOURISM AND CONSTRUCTION
Queensland's visitor economy is now experiencing sustained growth in both domestic and international visitors and expenditure.
“Cairns now hosts 34% of all visitors to Queensland, and tourism is experiencing steady growth with increases across a variety of markets. China is now our largest market with 217,000 visitors per annum (up 31% on the previous year), followed by the USA (up by 18%) and Japan (up 17.6%). Indian visitation is growing rapidly, with a 25.6% rise over the past year.
Cairns has been hailed as “the leading hotel market in Australia” and a “thriving hotel market with strong prospects” by the US-based International Hotel Investment Forum.
This growth supports the case for new developments and Cairns is now a hot-spot for local and international investors. Hundreds of millions of dollars are being invested in city-defining projects, giving confidence to others to invest. The new $65 million Cairns Aquarium has just opened its doors and Aspial Corporation’s $550 million Nova City is also taking shape. The GA Group has committed $100 million to redevelop the Rydges Tradewinds and a further $200 million for two new CBD hotel/apartment projects.
Other planned projects include the $500 million C3 retail/residential project and Kur-World’s $640 million integrated resort at nearby Kuranda”.
Reference: Developing Northern Australia Conference 2017.
While real estate agents in Cairns still don’t use the term “boom” for good reason, the fundamentals for Cairns are more than sound, from positive population growth, housing affordability and job creation in tourism and construction. Rather than that of the “golden years” of rapid, unsustainable growth our city experienced before the GFC there is a realisation that a gradual, consistent rate of growth is more desirable this time around.
Others are not so conservative about Cairns’ prospects over the medium term.
“BIS Shrapnel chief economist Frank Gelber has labelled Cairns a “boom city”, predicting the next five years through to 2020 will see “enormous” cyclical and structural economic shifts in Australia that will benefit tourism-dependent cities”.
Here are a few things to consider when investing in Cairns’ property market
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