SOHO Construction well on its way at level 19

Transcription

1 SOHO Construction well on its way at level 19 NEWSLETTER February

2 View of Darwin at night taken from the North West corner of where SOHO will be built. NEWSLETTER February Hi Everyone, Welcome to 2014 from Darwin, currently one of the wettest places in AUSTRALIA! The news on Darwin s economy has started on a high note. We have included a MEDIA RELEASE here from Dave Tollner, our DEPUTY CHIEF MINISTER, which makes some interesting points. 1. The Territory economy grew at the highest rate of all states and territories in the last 12 months. 2. The Territory Economy is predicated to continue as more MAJOR CONSTRUCTION commences. 3. International exports private housing investment private equipment investment all will underpin our growth over the next five years. Coles Express now open in Coolalinga. All of this is great for the Territory LONG TERM and places us here in the NT at the forefront of growth in AUSTRALIA. I am reminded that Real Estate INVESTMENT is a LONG TERM INVESTMENT that requires growth and Employment and Infrastructure spending to underpin CAPITAL GROWTH and the availability of LONG TERM well paid tenants to provide high yields. The combination of these two makes DARWIN probably the SAFEST PLACE in AUSTRALIA to invest right now as no other CAPITAL CITY can match our figures for projected growth in our ECONOMY. Many people I meet as I travel around AUSTRALIA, speaking about DARWIN S growth prospects, mention we are more expensive then DOWN SOUTH to buy property. My observations have always been that what is more expensive in the long run as an INVESTOR? A cheaper property with minimal growth prospects and fewer TENANTS to rent your property and a high holding cost. Or The higher price you pay in Darwin but which is matched by the HIGHEST Rents in AUSTRALIA with good Capital Growth and holding costs at ZERO. Continued overleaf. McDonalds Coolalinga opening for business very soon.

3 View of Darwin at night taken from the North West corner of where SOHO will be built. NEWSLETTER February Here at GWELO we are so convinced by the future of DARWIN that we are offering a 10 YEAR Rental Leaseback on our CBD LENZ PROJECT, which gives you NO VACANCIES for 10 YEARS. THAT S CONFIDENCE. Soho in Woods Street CBD is moving towards completion so if you have invested in this development we will be contacting you soon to start to set up your settlement. All The Best for Now Jim Downs Mobile: Phone: Fax: Jim@gwelodevelopments.com.au The Lenz A new project that will follow on from SOHO and has planning approval.

4 NT News: Darwin s rental yields Darwin continued to lead in rental yields, with houses and units producing the highest in the country for investors. Houses hold a gross rental yield of 6.2% and units 6% - well above the national averages of 3.9% and 4.7% respectively Treasury Economic Brief: Preliminary Residential Property Statistics January 2014 The median price of houses sold in Darwin and Palmerston has increased by 7.4% in the year to January Treasury Economic Brief: APM Unit prices December Quarter 2013 Compared to the December quarter 2012, the median unit price in Darwin increased by 8.4% Colliers International: Darwin Residential Q Darwin maintains some of the highest median property prices in the nation Year-on-year there was a 15% increase in the total sales value of houses At the conclusion of 2013 Darwin boasted the highest rental yields in Australia. The last quarter of 2013 finished on a strong note for the Darwin property market with overall volume and value of transactions up Multiple high-end sales continued to feature with 22 house sales recorded over $1 million. This highlighted the dominant demographic of affluent secondary buyers In terms of location, Darwin CBD recorded the most sales. Of all sectors in the residential market, apartments are anticipated to be closely monitored in the year ahead in 2014 a large volume of new unit stock is expected to come to the market. The strong investor appetite should continue to absorb a large portion of this supply. In the rental market, Darwin maintains the highest yields in Australia. The Darwin rental market continues to maintain the strongest returns in the nation Average rental returns are anticipated to remain firm this year Robust rental returns in Darwin continue to attract strong levels of investment activity. As 2014 is welcomed in, it is anticipated that Darwin will enjoy a prosperous New Year with robust economic conditions that will outpace the rest of the nation NT News: Upmarket rentals fetch $2,500 a week Rental prices in Darwin are as high as $2500 a week for some properties that are aimed at the executive market, according to the industry s peak body Treasury Economic Brief: Building Activity September Quarter 2013 Residential building work done in the Territory increased by 31.2% to $192M. The quarterly increase was driven by the construction of units, which increased by 68.0% to $122M, the highest quarterly level on record. This reflects construction work on a number of large unit developments, primarily in and around the Darwin CBD Property Observer: capital city Darwin has been Australia s best performing capital city over the five years with an average change in median values of 7.24%. Demand for additional accommodation has come from major projects such as the Ichthys LNG plant, a marine supply base, and correctional facility.

5 Treasury Economic Brief: APM House and Unit rents December Quarter 2013 APM reports the median weekly asking house rent in Darwin increased by 2.9% from $680 a week in the September quarter 2013 to $700 a week in the December quarter In annual terms, Darwin s median weekly asking rents for houses increased by 7.7%, the strongest annual growth of the capital cities. Median weekly asking rents for units in Darwin increased by 3.6% to $ Property Observer: property price growth Cities that were left out of last year s property boom - Canberra, Darwin, Brisbane - could take over and produce another 10% national average price growth year, business commentator Alan Kohler has suggested sourceable.net: Northern Territory tops construction league table Work on the massive Ichthys LNG Project has propelled the Northern Territory to the top of the table in a ranking of states and territories within Australia in terms of the dollar value of construction work done against historic averages The Territory also topped the charts in terms of economic growth (and) is also undergoing a boom in housing construction Logistics Magazine: Toll wins $90 million LNG project contract As part of the 10-year contract Toll will design and operate the project s offshore logistics base in the Northern Territory as well as provide ongoing logistical support for the project in the Browse Basin Toll will also own the yet-to-be-built INPEX-dedicated facility to be located in Darwin s East Arm Business Park Precinct The West Australian: INPEX dredging in Darwin Harbour Gas giant INPEX says it has completed the most technically challenging section of its dredging program in Darwin Harbour NT News: Santos Work has begun on the Bayu-Undan Phase 3 project to increase capacity. Phase 3 will see two new subsea wells tied in to the existing platform with gas expected in Gulf Times: LNG export surge boosting prices for Australia buyers Australia s gas exports will rise to 81% of its total production by 2018, from 53% in 2012 LNG will displace iron ore as the main source of Australia s export growth this decade, according to the Bureau of Resources and Energy Economics, the government forecaster. LNG export earnings will increase fivefold to more than A$60bn through June NT News: Higher gas prices limit future options Expansion of the two Darwin gas plants is the most likely future gas development

6 News: In the pipeline: A big year ahead for INPEX Manager of project construction Chris Wheeldon says it s taken about 690,000 tonnes of steel to manufacture the pipe It ll be the longest subsea pipeline in the southern hemisphere and the fifth longest in the world it ll take around two years to lay pipe along the 889 kilometre route, with work to begin the second quarter (of 2014) NT News: ASCO unveils growth plans Marine Supply Base manager ASCO Group says it has major expansion plans across Australasia and its Darwin base will play an important role in the growth ASCO has significant plans to expand its footprint across northern Australia Central Petroleum Ltd: Quarter ended Grant of the Surprise West Production Licence imminent with production facilities and equipment project ready Phase 1 of the Southern Georgina Work Program expanded by US$35million to US$95million Having received the Federal Minister s consent to the agreement with Traditional Owners on 28 January 2014, Central Petroleum should receive the first onshore Production Licence in the NT since the Mabo decision Junior Mining Network: Crocodile Gold Canadian company, Crocodile Gold Corp, has entered into three key contracts to support the Company s mining operations (Cosmo Gold Mine) proactiveinvestors: Korab Resources to mine phosphate in NT Korab Resources has been granted authorisation to mine phosphate from its Geolsec Project approximately 70 kilometres south from Darwin PR Newswire: GPM Metals Inc. GPM Metals Inc. through its wholly owned subsidiary DPG Resources Australia Pty Limited announces signing of Earnin/Joint Venture Agreement with Rio Tinto Exploration Pty Limited for the Walker Gossan lead-zinc-silver project, Northern Territory NT News: Ore-some increase Bootu Creek manganese miner OM Holdings has reported an 80% increase in ore production in the December quarter thanks to newly developed deposits. The Bootu Creek mine produced 271,971 tonnes of ore at a 35.5% grade in the December quarter Bootu Creek has the ability to produce a million tonnes of manganese ore a year SBS: Thiess wins $135m iron ore contract Thiess has won a $135 million contract from Western Desert Resources to lead the mining operations at the Roper Bar iron ore mine ABC News: Sherwin Iron Sherwin Iron is borrowing $8 million for an expansion of its Roper River mine, 500 kilometres SE of Darwin The company wants to mine 18 million tonnes of ore over the next six years.

7 NT News: Thor s find Thor lodged a mining application with the Northern Territory Government to begin gold mining operations at Spring Hill via a near-surface short term gold extraction operation estimated to yield between 40,000 and 45,000 ounces of gold over a 2/3 year period. The company hopes to start mining within a year, subject to regulatory approvals, with milling via toll treatment at Crocodile Gold s nearby Union reefs processing plant Weekend Australian: Entry visas extended for Chinese. Chinese visitors will be eligible for new 3-year multiple-entry visas under a move designed to expand Australia s biggest tourism market NT News: Territory to benefit from investment rule change A Chinese rule change on foreign investment will increase foreign investment in Territory companies Previously, the limit was typically $US10 million. Now, most companies will generally be able to invest up to $US1 billion without having to go to the government for permission first. China watchers think this means Chinese corporate management should now be able to react more quickly to investment proposals as a result. Australia China Business Council NT president Daryl Guppy said the move was part of an increase in investment in Territory companies Parliament of Australia News: A broad-ranging new inquiry into the future of Northern Australia will seek to help define the region as an economic powerhouse for the nation. The inquiry by the Joint Select Committee on Northern Australia will examine economic, taxation and infrastructure policies which could help support development in the parts of Australia north of the Tropic of Capricorn, which includes large parts of Western Australia, Queensland and the Northern Territory An interim report is due by the end of May with the final report to be delivered to parliament on or before 6 July Beef Central: CashCow project One of the largest and most comprehensive cattle research projects ever conducted across northern Australia has unearthed a treasure trove of opportunity to improve the region s reproductive performance NT News: Buffalo bound for Vietnam 600 buffalo shipped out of Darwin bound for the province of Dong Nai A second shipment is expected to leave the Northern Territory within the month NT News: Beefing up demand for NT live cattle NT Livestock Export Association chairman Kevin Mulvahill said Indonesian import quotas have increased dramatically to between 650,000 and 720,000 for 2014 and most of them are live export feeder cattle NT News: New markets open up for cattle exports Mr Bowen (NT Cattlemen s Association executive director) said China was one market providing promise for live animal export. China is doing huge escalation of growth in demand for beef and other proteins, (and) that is likely to increase.

8 Financial Review: InterContinental Hotels embarks on year of growth The chief operating officer of InterContinental Hotels Group s (IHG) Australasian and Japanese operations, Mr Watts will oversee a significant expansion in Australia Mr Watts says IHG is actively looking in Darwin and the Northern Territory NT News: Darwin rated a top spot Darwin has been named one of the 20 must see destination of 2014 by UK publication The Telegraph The write-up notes Darwin as Australia s boom town in the tropics NT News: Indonesia tips new air route Garuda Indonesia airlines is looking at a new route between Denpasar, Dili, and Darwin in a new agreement with Timor Air The Australian: Infrastructure Shortfall Former Treasurer Secretary Ken Henry told The Australian that there were questions about whether Australia had sufficient port, road and rail links to export its materials Why don t we explore the possibilities west and north out through the Port of Darwin? And think about what that would do for the Northern Territory Media Release: Great Aussie railway celebrates 10th anniversary Trains on this line now carry everything from consumer goods to bulk minerals, as well as providing one of the world s great rail journeys on The Ghan. Volume of freight from Adelaide to Darwin now averages an impressive 600-plus containers a week on six trains each 1.8 kilometres long carrying around 5,910,000 tonnes of intermodal freight each year. GWA also operates 24 trains a week, between mine sites and the Port of Darwin transporting bulk minerals, in excess of 3 million tonnes per annum NT News: Putting out welcome mat Thousands more international passengers passed through Darwin International Airport in the past six months compared to the previous year, new figures show a 17.3% increase in international passenger numbers through the first half of International passenger numbers have almost doubled in the last 5 to 6 years. In the 6 months to Dec 2013, 185,000 passengers passed through the Top End airport, up by 27,000 on the same period in Media Release: Extra Qantas flights for NT Qantas is continuing to show its confidence in the Territory with an increase of 10 domestic service flights to Darwin. The additional Qantas flights represent an estimated 15% increase in its existing frequency and a 10% increase in its existing seat capacity to the Top End Chief Minister Adam Giles: Recent months have seen a significant increase in air capacity to Darwin and confidence in the NT s aviation industry is continuing to grow NT News: SilkAir puts on extra flight The airline will increase flights from the Top End capital to five times a week SilkAir s vice-president commercial Ryan Pua said the company had seen encouraging demand from the Darwin market. We have also seen increasing interest in the Northern Territory as a leisure destination from our SilkAir and Singapore Airlines passengers.

9 NT News: New air and sea ports slated in Darwin plan A second airport and a third sea port are among a raft of future-proofing measures in an ambitious draft Darwin land use plan Mantra Pandanas update: Average occupancy 93%. Occupancy increased by 9% compared with The corporate sector was again dominant with long stay business as a significant contributor NT News: Canadians pumped about biofuel plant future A Canadian company has bought the Territory s abandoned $ 50 million biofuel plant Lignol Energy wants to reopen the plant in the second half of this year. It can produce 140 million litres of biodiesel per year Media Release: A Year of High Economic Growth Treasurer Dave Tollner said independent analysis of the Territory economy points to continued above average performance and job growth both the latest CommSec State of the States report and the 2013 Business Outlook Publication from Deloitte Access Economics were bullish in their outlook for the Territory economy. Both reports indicate our economy is performing strongly. This growth is expected to continue in 2014, driven by healthy retail spending and low unemployment. Our job growth will be driven by continuing to develop opportunities for Territory business. The private sector is where the real economic growth potential exists and the Country Liberals Government will continue to work hard to attract private and overseas investment and to create an environment that is good for business. Deloitte Access is forecasting: The Territory economy to grow at an average annual rate of 4.7% between and This is the highest growth rate of the jurisdictions and well above the 2.9% forecast for Australia over the same period. The Territory economy to grow by 4.9% in , the highest growth rate of the jurisdictions. Growth in is expected to be primarily driven by private equipment investment related to major projects. Private construction investment will remain at record high levels. Growth in the Territory between and will be driven by international exports, private housing investment, private sector consumption, private equipment investment and retail. International exports are expected to grow by 4.6% in and by 18.7% Private sector consumption growth to average 3.7% between and , while private housing investment is expected to grow at an average of 10.2% per annum over this period. Retail is expected to grow by an average of 3.3% per annum to CommSec s analysis found the Territory has the second strongest economy and economic activity in the Top End is more than 40% above long term output levels Research by Colliers International predicts the Territory Government s focus on re-zoning of land will drive sales of large development sites in The Colliers research found there had already been a steady improvement in land supply for development and this trend was expected to continue.

10 Treasury Economic Brief: Labour Force January 2014 Year on year employment growth increased to 1.7% in the Territory in the year to January This was also the highest growth of the jurisdictions and compares to 1% nationally Treasury Economic Brief: Building Approvals December 2013 In 2013, the number of residential building approvals in the Territory increased by 19.9%, (nationally, the number increased by 15.7%) Treasury Economic Brief: Consumer Price Index Sept Quarter 2013 In year on year terms, Darwin s CPI increased by 3.9% in 2013 as forecast by the Department of Treasury and Finance in the Budget. Nationally the CPI increased by 2.4% Treasury Economic Brief: International Trade November 2013 In the year to November 2013, the Territory s international good trade surplus increased by 68.8% to $1.3B The Territory s top two merchandise export destinations in the year: Japan reflecting LNG exports from the Darwin LNG plant; China predominantly mineral ores (manganese and iron ore) and concentrates (zinc/lead) Treasury Economic Brief: Population June Quarter 2013 Compared to the March quarter 2013, the Territory s estimated resident population increased by 0.7%... Along with WA, this was the equal highset quarterly growth rate of the jurisdictions Treasury Economic Brief: Sensis Business Index December 2013 The net balance confidence level of Territory Small and Medium Enterprises (SMEs) in their own business prospects over the next 12 months increased by 11 percentage points The Northern Territory and Victoria recorded the second highest net balance for attitude towards government policies after Queensland NT News: We re cashed up, confident and still spending The Territory economy is rocking along, according to the latest figures from the Commonwealth Bank total spending in the Territory grew at the second-highest rate in the nation, up 1.4%... Territory spending has grown in trend terms for 30 months in a row, the longest golden run in Australia. Disclaimer The above information has been compiled by Gwelo (the Agent) from third party providers. The Agent has not verified whether the above information is accurate and does not have any belief one way or the other as to its accuracy. The Agent does no more than pass on the information. The Agent does not accept any responsibility to any person for its accuracy. All interested parties should make and rely upon their own enquiries in order to determine whether or not the information is, in fact, accurate.