North Queensland

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The peak body representing Queensland’s 77 councils is urging the Federal Government to establish a national reinsurance pool to help reduce the cost of property owner insurance premiums in North Queensland and across northern Australia.

The Local Government Association of Queensland President and Sunshine Coast Council Mayor Mark Jamieson said figures contained in the Australian Competition and Consumer Commission’s inquiry into insurance in Northern Australia, released in December, were stark.

“The ACCC found insurance premiums had risen by up to 178 per cent in Northern Australian over the last decade, compared to 52 per cent elsewhere,” Mayor Jamieson said.

“More than 62,000 properties in North Queensland are currently uninsured, with more than 95 per cent of those uninsured property owners citing cost as a reason, the ACCC found.

“This is just simply unacceptable in a state as highly vulnerable to natural disasters as Queensland.

“Our member councils want a reinsurance pool established to help reduce those costs so their communities are not unfairly burdened, and we support their call.

“We urge the Federal Government to work with the councils as leaders of their communities to ensure an effective scheme is implemented before the next disaster season.” 

Townsville Mayor Jenny Hill said the Commonwealth Government could no longer continue to bury its head in the sand on the issue. 

“The ACCC took three years to complete its investigation into insurance in Northern Australia and over that time the situation has further deteriorated. 

“Homeowners, renters, businesses, body corporates – the prohibitive cost and, in some cases, lack of availability of insurance, is seriously impacting communities.

A reinsurance pool already exists through the Australian Reinsurance Pool Corporation, set up by the Howard Government in 2003 to address a previous instance of market failure for terrorism reinsurance scheme.

“The insurance market in Northern Australia has clearly failed and it’s time for a national reinsurance pool to help reduce the cost of insurance premiums.”

Whitsunday Regional Council Mayor Andrew Willcox said it was frustrating that the recommendations in the recent ACCC report did not go far enough to protect his community against huge insurance premiums that are double the rest of Australia.

“It is really difficult for the people from the Whitsundays and North Queensland who are paying so much insurance so we are calling on the Commonwealth to help us develop the north.
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jchancellor

Queensland councils urge government to reduce the cost of property owner insurance premiums

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The depth of the horticultural market in far north Queensland will be tested with a large mixed avocado and sugar cane property being offered to the market, according to the latest Herron Todd White (HTW) rural report. 
The report notes the property, located at Arriga (pictured below), comprises 1,576 hectares developed with 31,483 young Hass variety avocado trees and a sugar operation producing around 120,000 tonnes per annum.
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The irrigation water allocation of 8,732 megalitres is one of the larger allocations in the region.
Combined with extensive structural improvements and supporting infrastructure, it is expected to generate interest from corporate buyers and local larger family operators.
The market for well-watered Atherton Tableland grass country continues to be strong with numerous recent sales to western graziers and others seeking drought proof fattening country.
The latest is a 120-hectare piece (pictured below) at Moregatta on the southern Tablelands that sold under the hammer for $1.24 million at auction with strong interest.
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The sale analysed to $7,802 per hectare ex-structures.
"What makes it a bullish sale is that it was a deceased estate / administrator’s sale in run down condition requiring repairs, however this is consistent with the recent bullish trend," HTW said. 
The report notes reliable high rainfall is the main driver in this market with rainfall throughout the Atherton Tablelands ranging between 1,500 millimetres and 2,500 millimetres per annum.
Recent wet seasons in north Queensland have been above average and this is consistent with Bureau of Meteorology rainfall statistics borne out in the below illustration.
"If rainfall trends continue, it is likely that Atherton Tableland grass country will be a hot spot for west graziers for many years to come," the valuation firm said. 
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Reliable high rainfall - the main driver in North Queensland rural property market: HTW rural

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Queensland's North and North Western agricultural property markets are experiencing a wide variety of different trends in 2019, according to property valuation firm Herron Todd White (HTW). 
The valuation firm found that some areas were experiencing strong selling conditions, while others were providing more opportunities for buyers.
In regards to grazing, the national drought is bringing buyers to North and North West Queensland, it noted.
Sale activity continues in the downs country to the south of Richmond/Julia Creek to Kynuna and Corfield. 
Current sale contracts are reflecting similar value rates as the peak period just after the monsoonal event in February. 
These are ranging from $321 per hectare ($130 per acre) to $395 per hectare ($160 per acre) in general with a peak to $432 per hectare ($175 per acre). 
The demand for property with any grass at all is still high, according to the report. Current sales have varying amounts of available grass and varying quality of grass. 
Sales contracts in February/March were at similar levels to the last property market peak in 2008/9, HTW noted. 
"There was a short period after March (when the grass did not grow after the flood) where a few softer priced contracts were struck. 
"These were at prices that were closer to 2018 values. 
"There are very few local buyers in the mix in this area," the October report noted.
Some stakeholders told the valuation firm that they believe that these value levels are ‘where they should be, previous years pricing was when the country was in drought and had no grass’, and ‘there is more in the market yet for value increases’.
Others are sceptical saying that this market is ‘over priced’ and ‘when it rains in other areas of Australia, this market will take a dive’. 
It is a good sign that there are competing thoughts and theories – vendors will sell, buyers will buy, HTW suggested. 
"This keeps the market active."
Around Charters Towers, demand for country is strong with very little country on the market for sale. 
Recent acquisitions have been by local buyers.
The lack of property being offered to the market is forcing the buyers to pay higher prices.
Variation in the respective markets means the locals are active in one market area, while out of district buyers are active in the other. 
The rest of North and North West Queensland is not as busy, there are a few deals on the go and demand is there from a mix of locals and out of district buyers. 
There are a couple of higher priced deals on the go that are reflective of a change in use, or an expectation of a higher and better use (farming). 
"This is a positive dynamic for those market areas. 
"Not all potential property vendors will benefit. 
"This means that they will have to remain realistic as to what their property is worth when offering their property for sale," the report concluded.
 
 
In regards to suger cane however, the firm found that values for suitable farm land have been under pressure due to lower returns.
There has been some degree of value weakening.
As a result of the margin pressure that these farmers are in, they have been forced to either diversify or sharpen their operating costs again. 
Those that are diversifying into break crops of Mung Beans, Beans, Chick Pea and in some cases, Sorghum are reaping the returns on the back of strong pricing. 
The drought in the southern growing areas is benefiting these farmers. 
A winner here is the soil, which is benefiting from a change in crop. 
As a result of the southern growing areas drought, the Burdekin is the winner.
Given the pricing of cane land and the water, the Burdekin is looking affordable at present.
Recent contract prices are from $15,000 to $18,000 per hectare for marginal cane land. 
Of this some of the buyers have intentions of targeting the shorter growing cycles and present high pricing of grain returns. 
The report concludes that "This is an exiting era of rural property market dynamics in North and North West Queensland."
Despite  continuing concerns around drought, there are positive signs in the region. 
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Queensland's North and North Western rural property markets showing mixed signs

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Beef producer, the Australian Agricultural Company, has confirmed heavy rain and severe flooding in North West Queensland has “severely impacted” four of its 21 pastorals properties.
Wondoola is the most affected of the company’s Gulf of Carpentaria properties.
AACo’s earnings and profits are likely to take a significant hit from the flooding, but also drought elsewhere.
The four Gulf stations were subjected to rainfall of 500 millimetres.
Wondoola Station, about 480 kilometres north east of Mount Isa, lies between the Saxby and Flinders river systems on open downs country where AACo runs Brahman breeders.
Canobie, Dalgonally and Carrum stations, which have a total herd of 50,000 head, were expected to sustain “lower but still material losses”.
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"Our immediate focus is on our people, the welfare of our animals and the tight knit communities in which we operate," the AACo boss Hugh Killen said.
"The current conditions are still challenging and a credible assessment of the impact on livestock and infrastructure will only be possible once the flood waters have started to recede."
This is likely to occur over the coming weeks, with Killen noting there is still a possibility of further wet season storms.
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Floods affect beef producer, Australian Agricultural Company

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A timber cabin on five acres is coming up for auction just out of Mackay, in North Queensland.
Hazledean is both the name of a small township and the cabin itself.
The marketing agent Hayley Van de Ven says it’s ‘cute as a button’.
The one-bedroom house has electricity, hot and cold running water, a fire place, a kitchen and bathroom.
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The property is fully fenced, and close to a dam where you can fish or catch yabbies.
Van de Ven describes Hazledean as ‘a cabin straight out of Dr Quinn Medicine Woman’, the American Western drama series set in Colorado Springs in the late 1860s, which went to air in the 1990s.
"It is easy to imagine Jane Seymour as Dr. Quinn knocking on the cabin door to visit a patient!"
The June 2 auction is on behalf of the Wiri Yuwiburra Community Benefits Trust, with the property now surplus to the requirements of the Trust.
Hazledean is a 40 minute drive on bitumen road from Mackay, along the Peak Downs Highway.
Van de Ven says an adjoining property, also on the market, would make an ideal B&amp;B, with two houses already on the site.
Offers of over $375,000 are sought for this 3.5 acre property, which has a running creek and secret garden, sheds and containers onsite.
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Unusual Mackay cabin with frontier touches listed for auction

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Demand is heating up for forest breeding country in the Burdekin River Valley from the Belyando in the south to Mount Garnet, Einasleigh and Georgetown in the north.
There is a shortage of forest breeding country on the market, valuer Herron Todd White's recent rural report suggested.
"There is a market disrupter in the room in the form of the Department of Defence," the firm suggested.
HTW advised as this year progresses, the property clock for this region of North Queensland is likely to rise from the nine o’clock (rising) position towards twelve o’clock (peak).
"Depending on how the Defence negotiations play out, this market may see record values later in the year. 
"There is a distinct possibility of vendors re-entering the market as buyers with significantly enhanced cash and reduced debt to acquire replacement cattle stations for the ones that they may have just sold to Defence.
"It will be interesting to see if any of the deals break the springs of the property clock!"
The valuation firm suggested there  ay be some overflow of demand in neighbouring market areas.
"These may include the Desert Uplands and the Hughenden basalts and the Georgetown, Einasleigh and Mount Garnet areas," it suggested.
The following table provides a run around the ridges of the north and north-west Queensland grazing property market areas:
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Defence acquisitions could boost North Queensland rural market: HTW

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A Charters Towers City three bedroom house has been sold by mortgagees for $66,500.
It was sold by Kym Whelan from Ceaneys Real Estate earlier this month.
It last traded at $183,000 in 2009, and at $74,000 in 2006 and $56,000 in 2004.
<a href="https://www.realestate.com.au/sold/property-house-qld-charters+towers+city-127434326" target="_blank">Located at 3 Regent Street</a>, the northern Queensland home comes with three bedrooms, kitchen, outdoor entertaining area and two bay sheds.
The land size is 941 square metres. It had a $52,000 official land value in 2015.
The suburb's median house price sits on <a href="https://www.urban.com.au/property-observer" target="_blank">$125,000</a> according to CoreLogic. 
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Northern Queensland three bedroom house sold by mortgagee

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Banana growers in north Queensland affected by Panama disease are encouraged to contact their bank to access a range of hardship measures on offer. 
Australian Banking Association CEO Anna Bligh said banks understood the challenges facing growers in the region because of the new outbreak of the disease and were on hand to help. 
“This is a challenging time for banana growers in north Queensland who are contending with the effects of the Panama disease or the threat of it,” Ms Bligh said.
“An outbreak, or threat of outbreak, can have a significant impact on income and cashflow, causing heavy financial strain on farmers. 
“We strongly encourage farmers who are concerned about their financial situation to contact their bank as early as possible to access the many forms of assistance available.
“Banks understand that agriculture can be heavily impacted by weather and seasons therefore can be flexible where needed to help customers in need,” she said.
Over the past few months Australia’s major banks have met with representatives from the Queensland Government and the banana industry about the effects of Panama disease.
The type of assistance offered will depend on individual circumstances, but may include a deferral of scheduled loan repayments, waiving fees and charges, interest free periods or no interest rate increases; and debt consolidation to help make repayments more manageable.
Find out the contact details of your bank’s financial hardship team <a id="m_2170294376519089879LPlnk518030" href="https://www.ausbanking.org.au/images/uploads/ArticleDocuments/206/Banks%20hardship%20contacts%20Jan%202016.pdf" target="_blank" data-saferedirecturl="https://www.google.com/url?hl=en&amp;q=https://www.ausbanking.org.au/images/uploads/ArticleDocuments/206/Banks%2520hardship%2520contacts%2520Jan%25202016.pdf&amp;source=gmail&amp;ust=1519947570499000&amp;usg=AFQjCNH89cc-F2BIrugqnxfiqrn0N6B11g">here</a>.  
 
 
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Support from banks for Panama disease affected banana growers

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Businessman Peter Bond has let part of his Dunk Island sub-lease lapse, but has told The Australian he is re-tendering for the site.
The Dunk Island Resort in far north Queensland was bought by Bond in 2011.
The resort and island had been devastated when Cyclone Yasi tore through that year.
Dunk Island Resort occupies 150 hectares, the largest in what is known as the “family group of islands”.
The founder of the failed Linc Energy group let the sublease on the Dunk Island Spit lapse.
Bond told The Australian he is retendering for the Spit site, which is adjacent to his luxury resort, which is almost ready for business after the cyclone.
Tenders for the Dunk Island Spit site are due February 28 next year.
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