News
Major Projects on the Front Burner as Confidence returns to Far North
The federal government went deeply into deficit to fund recovery. It could have saved us a lot of money if it knew how to bottle and sell confidence. The level of confidence is a key ingredient in any economic or real estate cycle. Economists don’t understand our residential markets because you can’t factor confidence into a mathematical formula. The boffins who think computer models dictate the workings of the world can’t fathom why Australian property prices are high relative to other countries, because they don’t understand the confidence factor. Australians are confident people. You can see it every week in the sporting arena. Our soccer team has no right to foot it with Argentina or The Netherlands but it competes because the players always believe they can win. Our cricket team has lost some of its greatest talents to retirement but it still wins because losing never enters Australians’ heads. Jack Nicklaus reckoned the most important factor in golf was confidence. It’s true of any sport, or indeed, any human endeavour.
Our economy is punching above its weight and jobs are being created faster than the economists can comprehend because confidence is rippling through the community. Property markets are rising again on the back of growing optimism. No place demonstrates the impact of self-belief better than Townsville, in north Queensland. Townsville has become a very confident city, buttressed by an economy with numerous sturdy elements: tourism, administration, manufacturing, education, the military, resources. Its residential market had five strong years from 2003 to 2008, before taking a breather over the past 18 months. During that down phase, several major development proposals were deferred. Now everything is back on the front burner. The announcements since the new year have come so fast it’s hard to keep up. Stockland has been planning an expansion of its Townsville shopping centre for several years. It was ready to go when the global financial crisis started messing with people’s heads. Now it’s back on. Stockland says its $180 million expansion, which includes a Myer store, will begin this year creating 400 retail jobs, 660 in construction and 1000 flow-on jobs.
The centre’s lettable area will grow from 32,000sq m to 46,000sq m, making it the region’s largest shopping centre. Delfin Lend Lease says it expects a federal government decision soon on its environmental impact statement for the $1 billion Rocky Springs development. Then the project will advance to the next stage, seeking Townsville City Council approval before launching late this year. The project, approved by the state government in September, will create up to 18,000 homes and an Enterprise Park across a 1600ha site over the next 30 or so years. A $25m Bunnings superstore is expected to be completed in Townsville before the end of the year. Bunnings has council approval to build a 13,OOOsq m warehouse, creating 150 construction jobs and 130 retail jobs. It will be the second Bunnings store in Townsville, complementing the Domain Central store built in 2004, which employs 300 people. Meanwhile, the much discussed revamp of the Flinders Mall in central Townsville is close to a construction start. Work on the $60m project is scheduled to begin next month.
Townsville is a long way from mining country around Mt Isa but a lot of resources wealth passes through the city. Mining entrepreneur Joseph Gutnick says he’s proceeding with a $2bn phosphate rock project and Townsville will benefit. The product is to be railed to Townsville’s port and exported to India. Clive Palmer, much in the news for his announcements about a massive coal deal with China has become a key figure in the Townsville economy. Palmer is credited with a financial turnaround at the Yabulu nickel refinery. It is reportedly booming six months after Palmer bought the failing BHP Billiton plant and saved 950 jobs. It had reportedly been losing $40m a month. The city’s port is becoming increasingly important. Sea freight feeder company Q Coast is launching coastal shipping services at Townsville, to operate weekly services between Brisbane, Gladstone and Townsville. It seeks to compete with rail for haulage of goods, particularly heavy equipment. Also newly introduced is a fortnightly service from international shipping operator Mariana Express to Townsville port. The service links Singapore, Taiwan, Shanghai and Darwin with Townsville. The state government has announced $118m in funding for marine facilities at the mouth of the Ross River.
Australian CONTACT US for our House and Land Packages in Townsville
18/02/2010 Page: 33
By: Terry Ryder Section: Property Region: Australia Circulation: 131246
Type: Australian National Size: 407.00 sq.cms Frequency: MTWTF
view all