Monday, 22 October 2012

What's wrong with the Coal Industry?


There is no denying that Central Queenslands future prosperity is closely linked to the coal mining industry. However the fundamentals to Australia's potential future coal mining industry are strong. What is wrong about it from my perspective at the moment is the following 4 points.
1. The Australian Dollar is too high. Partly due to the exponential capital being invested at the moment.
2. The unions are struggling to get along with the corporations. Disputes that have been going on for two years now have gone too far for my belief. Im not going to get into a debate about what is right or wrong. However my point of view is that it is no ones right to have a job. Therefore  our jobs and industries are not fail proof. We are putting to much pressure on the business environment in this country.
3. Two new taxes have been introduced, a) MRRT b) carbon tax. It always takes time for people and industries to see how this will, in reality, affect them. Leading up to an election, the large corporations with so much at risk always attempt to have their political sway buy affecting the environments and aiming to have people vote for a party which the industries believe will benefit them long into thw future.
4. The cost base of our mining industries are exponential. In fact, just last week BHP made an announcement that it was time to be more conservative with their operating expenditure. When commodity prices go sky high, the miners will do whatever it takes to get the stuff out of the ground as quickly as possible. most of the time, oblivious to costs. 
this is summed up in a statement from BHP.
"While our resource base in Queensland is very high quality, the heavy cost of taxes, royalties, declining productivity and a strong Australian dollar means that further investment to grow these operations is much less likely," BHP CEO Marius Kloppers said in notes for a speech in Brisbane.
When all of the 4 factors sort themselves out to some extent, we will be back on track. times like these have happened before, and they will resolve themselves, and most likely happen again. 
Back to Emerald. It will also be the hub for many future projects, which will, at some point, go ahead. I would recommend for everyone to due a lot of due diligence into the mine closures at present as there is a lot to be understood about them.
As investors follow each other, i believe we will not see many new properties being built from July next year. This will, as it has in the past, provide time for the market to soak up an increase in rental properties which have been bought, usually at inflated prices, to investors who jump on board with the hype without understanding the market fundamentals or even its short, medium and long term outlook. This will see rents increase when, inevitably, there is limited supply and high demand, and investors will, once again, push the market even higher than the average. 
Luckily, yesterday (22/10/2012) the majority of BMA's 3000 strong workforce voted in favour of the latest employment agreement. ending a 2 year long dispute, Thats one problem solved, now for the other three!

Thursday, 2 August 2012

Regional Qld market update



The end of financial year has been and gone, we all bought our new large screen TV’s as the retailers gave hefty discounts to move them out the door. However, it seems you can still get them for a song even after the EOFY sales have meant to have finished. Consumer confidence rose 3.7% in the month of July however businesses are still doing it tough. The unemployment rate has been creeping up and over 5% since its may low of 4.9%.
It will be interesting to see August statistics as economist talk down the lynch pin to our economy, mining. Deloitte Access Economics have made a bold statement that the mining boom will be over in just 2 years. This is obviously a vast contrast to what we have all read and educated ourselves on for some time now. I have provided commentary on this topic as has Terry Ryder. PPI’s Facebook page has all that you need to inform yourself otherwise.

The question is, has the low consumer confidence over the past couple of months hit the ever buoyant mining regions of Queensland? Arguably, yes it has. Whilst the EOFY period is traditionally slower in investment sales as people finalise their financial position and set goals for the year to come, the property industry generally gets a little breather. However it has been a deeper breath than usual as it appears the former Qld Labor Governments $10,000 new home boost didn’t boost overall new home starts, it appeared to have brought many buyers with the intention to purchase is 2012, to do so in the first 4 months of the year. Many people have experienced reduction in sales south east Qld of nearly 70% since the boost ended. For the sake of humanity, I refuse to believe that we can be encouraged to buy a house in order for the cash gain of $10,000. As such, I am left with the opinion that this boost only brought buyers forward.

Going Into the regions now for an update as I see it. Overall, we have seen rental prices increase for a number of reasons. Many purchases from last year and the start of this year have finished construction and added considerable amounts of new stock to the market. Camps that were planned have seen stages of completion so companies moved out of houses and into the camps. BMA (BHP & Mitsubishi Alliance) have intensified their debates with the unions and this has seen a pause in new contracts being issued. With 6 (previously 7 prior to the Norwich Park closure) mines in the Bowen Basin they are a major employer and create a lot of demand for service related industries also.

Mackay regional council has been inundated with building approvals and is struggling to keep up. Very limited land is available that would be ready to build on within 3 months as sales of new estates is at an all-time high. New 4 bedroom homes are being sold in the low to mid $500,000 range in many estates. Rents seem to be going well with similar housing achieving in the low to mid $600 per week range. However many rental appraisals have come down below $600 from the local agents and this may be in anticipation of more stock coming on the market from the glut of builds this year. However I stand by my prediction that Mackay is an outstanding investment. Just don’t expect a BOOM, the only reason that it will boom are investors. And that’s not a real boom. Long term steady growth is achievable in Mackay and that’s what we should be expecting. Land developers are only putting their prices up because we are paying it. Let me say, they’re making hay while the sun shines. As competition increases in land supply, it will be good to see the arrogance and feeling of self-importance of land developers be levelled once again. Mackay still sits proudly as a growing regional hub with no factors that would see a construction workforce misconstrue what is really happening.

Gladstone has seen a cautious buying market as many more land developers release their stock compared to last year. We are being hounded by developers in Gladstone to sell their product, considering last year they didn’t want to know anybody associated with investors their tune sure has changed. The rental marked has subdued and you can now rent a new 4 bedroom house for under $600 per week. Perhaps an oversupply due to investors buying in on the hype and not looking properly at the long term fundamentals? This is still a market that I suggest to stay away from if you don’t have thick skin. Many more development sites are also now for sale compared to last year. The justification of spending $530,000 - $560,000 ($100,000 over the states median sales price) to get a rent of $600 per week doesn’t look that great to me. But maybe I’m just spoilt for choice?

Moranbah would have to be one of the most interesting case studies of QLD at the moment. Making headlines only 12 months ago about the lack of disparity of rents with Gold Coast mansions to not coming to a standstill and having over 150 properties to rent at any one time. Poised as the fastest growing region on the continent, how could this happen? This is mainly due to the BMA and union led disputes. Again, I bring reference to another post about this. The ULDA has released their land at the wrong time also. It seems the take up of their original target market being locals and small businesses was miniscule. With the council looking to lodge a Development application in the future for residential lots, it appears Moranbah may be able to breathe again and get back some life and attract the families back. People are underestimating the importance of this to happen so the town can be a vital hub to the colossal number of projects around it. Rents are still high at $1000 plus per week for good units and up to $2000 per week for houses. If they can stand this time, I believe they are here to stay. However at least now people can buy some affordable housing and the town can continue to grow properly so it can serve the region for decades to come. I still tip a good buy in Moranbah as a good long term investment.

Emerald Is doing its usual cycle that I am use to. Six months hot and six months a little cooler. BMA has inevitably had an effect on the town in the short term. Couple that with some more stock coming on the market and we have seen rents on 4 bedroom houses shrink to $750 or so per week from their highs of $900 - $950 just 4 months ago. I don’t like saying it, but I told you so. It was inevitable. The Emerald market was not ready for a steady $900 per week. The market fundamentals just weren’t there to support it long term. Argue with me if you will however for a purchase in the high $400,000’s with a rental return of $750 per week, this still has to be one of the best investments around that I can find for a typical 4 bedroom house. This is also due to the long term fundamentals that are at play in this regional hub were poise it for long term population growth with a very high median household income and company support for accommodation. There are a few estates coming online in the future which will see a broader range of property investment opportunities. If you’re not getting value in Emerald right now, then wait for the right one, it will come. Again, I couldn’t recommend a better place to invest with a 5-10 year perspective. We haven’t seen any impact from the Alpha mines yet and I believe it will be a couple of years from now until we do.

Monday, 23 July 2012

So…Is the mining boom over like economists say?


My understanding of the widely reported publication from Delloitte access economics is they have made an assessment on when they expect the continual flow of new project announcements to dissipate within a couple of years. This view is synonymous with what we are also hearing from some of the mining giants like BHP and Rio Tinto.

What the widespread publications of this report outline to me, is that as investors, we need to read the facts, not the headlines and also look beyond the article too. I have had a number of comments made to me saying “did you read? the boom is over”! My response is usually accompanied by a chuckle as I realize how people continue to take small, misconstrued headlines and pieces of information and make decisions based on them.

If for a moment we thought that the continued commitment of multi-billion dollar capital expenditure projects was going to be around forever, we really weren’t thinking into things too much. The level of financial commitment by large, medium and small mining companies over the last couple of years has been unprecedented and will continue to be for another two years let’s say. Should some proposed projects not be committed to like the Olympic Dam mine in South Australia, or the $20 billion construction of the outer harbour at Port Headland from BHP we should not start to say the boom is over.

What the boom is to an economist isn’t exactly what a boom is to a property investor. The economists are counting the continued financial capital expenditure commitment as their “boom”. As property investors our “boom” is seeing these large projects come to fruition and putting long term demand on housing in regional hubs throughout Australia. That “boom” is long term as a result of the short term “boom” that the economists look at.

There are three main reasons that it was always expected the boom in commitments was short lived:
1        1.    Access to capital funds and exposure from the funding market to one industry.
2        2.      Access to skilled workforces to bring the large amount of projects to fruition within a relatively short time frame.
3        3.       Increased costs of construction due to the boom in demand for labour and materials in a relatively short time frame.

I believe that in 5 to 6 years we may see another boom in capital commitments. This will be after the above three factors have all eased a little bit. In the meantime, for property investors, your time frame must remain long term and your desire to jump in with the crowd must be restrained  otherwise people will pay above the odds and will not see good yields on their property or good capital growth, so you may as well invest in a capital city.

My next blog will be about investors hype and the danger everyone is putting their selves into with the tunnel vision a lot of investors seem to invest with. Property investing is about strategy, not just buying property. If you really want to be successful at this, it is time to be smart.

Until next time, good luck with your property investing!

Josh

Monday, 25 June 2012

Moranbah, the fastest growing municipality in the country and its inevitable growing pains


Quoted by one of the countries most renowned demographers, Bernard Salt, as “the fastest growing municipality on the Australian Continent” The Isaac region and its hub of Moranbah is certainly going through some growing pains. But what does it all equate to?

2011 was a year that produced some of the best results for property investors in the country. The median sales price rose over 30% and rents sky rocketed to record levels, providing investors with 17% rental yields at purchase price.

With the FTE population set to double, why has this thriving hub come to a grinding halt? It should be no surprise to anyone who is actively looking to invest in the Bowen basin that the BMA (BHP & Mitsubishi Alliance) union led strikes are causing havoc throughout the region. The recent closure of Norwich Park mine just down the road in Dysart sent shockwaves through the property investing community. BMA claim the mine was running at a loss and the union disputes was what tipped them over the edge of the cliff.
As Terry Ryder pointed out, watch what they do, not what they say. Is it convenient that the tail of the Minerals & Resources Rent Tax is being discussed and BHP is a key player in the negotiations with the Labor Government on this tax? The closure of a mine puts them in the box seat when they are arguing there point against taxes, not to mention union involvement within their mining operations.
Close eyes need to be kept on Dysart and local insight and networks are vital to ride the wave successfully into the future. None the less, some great opportunities will be had in the long term future.
But the union disputes don’t stop in Dysart, the shockwaves have reverberated to its neighbourhood hub of Moranbah. The housing market has come to a standstill as new leases aren’t being signed by key players including BMA, and in fact, people are vacating as there employment contracts aren’t being renewed by BMA.

The lay person would put this down to the fact that BMA simply refused to pay the rents landlords were asking. Allow me to clarify one thing here using an example of one of my clients who owns a house in Moranbah. With a quality, low maintenance tenant in his property in July 2011 he was achieving $900 per week in rent. He anticipated that upon a lease renewal in January 2012 he may receive above $1000 per week. Renting direct through the a contracting company, he contacted the housing manager to ask their opinion on the matter. In one phone call, the company offered an increase of $300 per week. However when the lease came up for renewal in January, it was time to formalise the increase to reflect market value. The company immediately offered $1900 without even being asked by the landlord.
I tell this story to illustrate that it was not the landlords who demanded such increases in rents, it was the companies offering it as they are completely aware of the demand for housing and their reliance upon it both now and in the future. The thought that Moranbah’s housing market has slowed down at present is actually, completely un-related to the prices they were paying for rent. It has to do with a political standoff between BMA, the Unions and the Government. The fact that Moranbah’s housing market has retracted, is nothing less than a by-product of an 18 month old bitter dispute with the unions.

What does this mean for Moranbah’s future. To get a true understanding of it, I believe it is important to look at 2 things:
1.         The current change of local government which has seen the Isaac region become one of the last Labor Strongholds of QLD.
2.         What items are already agreed upon in the currently negotiated EBA’s (Enterprise Bargaining Agreements).

The new local government are anti-mining camps that will impact the township and its service providers who were originally there to service the full time residents, not a fly-in-fly-out workforce. The new council are pushing strongly for more family housing to be built to grow the community for the long term. The newly elected LNP government has since handed back decision making power to local councils that hastily became powerless to the ULDA (Urban Land Development Authority) who were appointed to take over development control in certain regional councils throughout Qld.

When looking at some agreed points in the EBA, there’s some positive news for property investors. Firstly, miners were against being housed in 30+ year old houses were there standard of living was decreased significantly to that of the city life. They are demanding a higher standard of accommodation from their employers, which both parties are agreeable to.

As a result, an amount of $2000 has remained as a weekly contribution to the employees rent. This in itself is a true indicator of where Moranbah’s rental market will inevitably end after nearly two years of bitter disputes between one of the country’s largest mining companies and the CFMEU.

With an increased demand for high quality accommodation around the $2000 range, it leaves the older houses to be used to service sectors that simply cannot pay such high rents. Industries such as health services, construction, retail and small professional services will once again be able to thrive, and help Moranbah continue to become the hub that it was designed to be.

The next five years is planned to see more expansion projects and new mines under construction within a 50km radius of Moranbah than any other time in history. Over 5000 full time employees need to find accommodation as nearly $13 billion dollars of private Capital Expenditure comes to fruition.

Could now be a prudent time for sophisticated investors to enter the market, and take advantage of weaker market conditions in preparation for the potentially prosperous years ahead?

Monday, 21 May 2012

Emerald, Central Qld


I've been looking forward to reporting on Emerald for some time now, it was this time last year that investors were looking at me with a clear "are you crazy" look on their faces when I was boasting about the prospects of this town. So it is with great enjoyment that I get to mention the performance that has been seen in the last 12 months.


 Once sleepy town of only a few thousand has grown to over 17,000 permanent residents with a lot more growth to occur. Situated on the Nogoa river, 270km west from Rockhampton, this thriving town boasts a diverse regional economy which is thriving on the prospects of Qld's mining industries growth.

The local council body, Central Highlands Regional Council pride themselves on creating a harmonious community between the strong agricultural industry and the buoyant coal mining companies as well as local residents. Emerald is the industrial and service hub to the mining operations in the south of the Bowen Basin and is expected to grow even further as the Alpha projects start which are only 150km west.

Contrary to the beliefs of many pessimists of investing in a mining region, Emerald has provided a safe haven for investors wanting to get their feet wet outside of major cities for over 20 years. Recording only 1 year of negative growth in 2008 of 2.5% over the last ten years, Emeralds median price has shown what has to be recognised as unprecedented and sustainable growth, including a significant rise in the median sales price between 2004 and 2006 with 2005 showing growth of 39.5% over the 12 months. Last year Emerald achieved a 9.5% rise in the median sales price, compare that to the majority of areas around Australia and you would struggle to argue that it's not one of the best CG regions seen in 2011.

The capital growth is not all that Emerald contributes to your portfolio. The rental yields are amazing and should not be overlooked. Returns of 8.5 - 10% are not uncommon at the moment. 12 months ago we were renting 4 x 2 x 2 homes out for $650 per week, now the market his seeing the same house rent up to $950 per week unfurnished.

Emerald truly is the best of both worlds at the moment for a property investor with rental yields to make the city investors cringe all the while actually achieving capital growth in what is a fairly flat overall property market Australia wide.

The recommendation does not come without a word of advice to novice regional Qld investors. The rental market does fluctuate as it sees record spikes due to a number of factors including staged land releases, contracts and just the normal aspects of a rental cycle. This could see the current highs of $950 per week go to $850 per week for a while. Does that mean that property prices and rental yields are decreasing? In my opinion, the answer is no. With my experience in mining regions, this is absolutely normal. I believe to get the best indicator, you have to look at rental yields on an bi-annual basis to see how they have moved in real terms.

Land releases throughout Emerald have always been patchy and look set to continue that way. Estates seem to release 50-70 lots at a time which does not help out the rental shortages much.

Unlike many other inland mining towns, Emerald has an array of shopping centres including a newly finished Woolworths and Big W centre, 2 centro centres and an ever expanding commercial shopping precincts. Some of the largest names in Australia are making sure they have a market share of this town which also boasts some of the highest average male wages in the country. 15 minutes from the town is one of the largest freshwater holdings in the southern hemisphere, Fairbairn Dam. Boasting fishing and boating activities to the locals and tourist from afar.

In my personal opinion, Emerald is a town that should be on property investors radars both now and in the future. The prospects are second to none for this thriving town that boast an array of lifestyle activities and employment opportunities.

Sunday, 11 September 2011

Mackay, Central QLD


This coastal town is located about half way between Cairns & Brisbane, originally a sugar cane town, Mackay now enjoys the diverse benefits of other industries supporting it. Only a 1.5 hour drive from Airlie Beach, the gateway to the Whitsunday Islands, and a 2 hour drive to the thriving hub of the mining activities of the Northern end of the Bowen basin.
Only few regions in the mining industry get to identify themselves, as Bernard Salt would classify, a muscle town. That is, the strength of the industries and services of the town are vital to the efficiency and productivity of the enormous minerals and resources sector that is rapidly expanding all throughout regional QLD. Separating themselves from a “motel town” is something that takes decades of infrastructure investment and smart governing on a local and state level.
The Mackay regional council has a population of just over 120,000 people. With unprecedented growth expected over the next 20 years. It is poised to be one of the largest growth regions by in QLD over the next decade. Mainly attributed to the benefits of the mining industry, people will choose to call Mackay home rather than living in a “motel town” closer to work where lifestyle, education and diversified employment are not comparable to that of a regional centre in many ways.
These factors make what I believe to be a property investor’s haven, especially considering the performance results of many areas across Australia as of late. Mackay is further developing itself as a vital muscle town to a diverse range of expanding, prosperous industries. With new shopping centres opening and expanding, along with educational opportunities, the current economic climate in Mackay is upbeat and making a strong progression towards its goal of being one of the highest growth regions in QLD over the coming decades. In 2009-2010 The Mackay region (Mackay-Isaac-Whitsundays) generated over $18.1 billion in economic value.

In the below Development Register from REDC, there is an outstanding amount of private and government investment to come in the region of Mackay and its surrounds. It appears that a significant amount of development is planned and occurring to achieve the predicted growth levels. The main factor that will hold communities such as Mackay, Emerald & Gladstone back is the slow release of land and developments which will hinder the population growth. Fortunately enough, as is shown below, the Mackay Regional Council are extremely co-operative in ensuring this problem does not exist.

Whilst you could assume that such aggressive levels of land releases could hinder capital growth in a region like Mackay, my opinion is that this won’t be the case. Mackay will continue to have a sustained, long term future when it comes to housing. Capital growth will be the envy of many property investors around Australia, whilst rental yields should get stronger. As an investor, you need to recognise the importance of a region like Mackay and invest for its security and long term growth that it will provide. It does not provide an investor with the rental yields seen further inland like Moranbah and Dysart, if it did, you would not see so much economic and infrastructure development that helps sustain and take Mackay in to the future. Muscle towns must provide affordable, quality housing to people, that’s why it’s a muscle town.

People use, and will continue to use Mackay as a home town. Many will bus or drive in from the mines in the north of the Bowen basin for their shifts, and returning home to spend their pay cheques. As Mackay provides a lot of the trades, services and equipment to the Northern Bowen Basin, the jobs in this sector will grow massively in the coming years, providing direct employment within the mining industry whilst living and working in MacKay. Couple this along with enormous external economic contributions that the mining sector provide to the rest of the economy, it is not hard to see how and why Mackay is poised for unprecedented growth in the coming decades.

As a property investor, I take the view that Mackay is a place for long term buying in order to capitalise on continuous growth in housing prices. Whilst holding property there, you should find yourself fairly close to being neutrally geared (after tax) at capital value for the first couple of years until CPI takes you into positively geared territory. Whilst on a local level, “rents are rising dramatically”, this seems to be at a more subdued pace than other mining regions. However, over the next 5 years as we see many of the below projects begin construction; a large reliance will fall on Mackay to provide the goods and services to make all this possible.
When it comes to areas for investing, the Northern side of Mackay is where a lot of the current development is occurring, with a little bit to the west. However, for a simplistic approach, I believe that the Northern beaches areas and towards the CBD will be the most popular places to live as they provide proximity to all Mackay has to offer with the beach lifestyle to the North. However, I don’t think that capital growth will differ that much within the different regions as the population growth will put significant demand on the housing market and no matter what property you have, there will be a need for it. 

MACKAY POPULATION GROWTH

 MACKAY REGION POPULATION GROWTH


DEVELOPMENT REGISTER (www.redc.com.au)

PROJECT NAME
DETAILS
PROPONENT
EST. COST (M)
TIMING
STATUS
AGRIBUSINESS

Cogeneration plant
Construction of a 36MW cogeneration plant at racecourse Mill
Mackay Sugar Pty Ltd
$120
10’-13’
In progress

Ethanol Project
Installation of a 600ML pa fuel ethanol plant at racecourse mill
Mackay Sugar
$85
2015 (completion)
Not started
Sarina Distillery Upgrade
Fuel-grade ethanol production to be upgraded from 38 million litres to 60m litres a year at Sucragen distillery Sarina
Conneq Infrastructure Services Aust
$18
08-09
completed
TOTAL  AGRIBUSINESS


$223


COMMUNITY INFRASTRUCTURE
Botanic Gardens Upgrade
Redevelopment of Mackay Botanical Gardens including developments of an outdoor performance centre
Mackay regional council
$13
11’-12’
Not started
Mackay Base Hospital Redevelopment
New 3 story hospital on current site, able to accommodate up to 318 new beds. New emergency and outpatients departments, renal support services, day oncology, dental services unit, birthing and delivery suites, special care nursery, ICU.
QLD health
$405
09-13
In progress
Mackay Showgrounds Upgrade
New and improved facilites at showground
Mackay Show Assoc.
$10
2011
Not started
Mackay Sports stadium
Sports stadium for Rugby League games. The stadium will hold 15,000 spectators
Woollam Constructions
$11
07-11
In progress
Ooralea Racetrack Redevelopment
Redevelopment of Racecourse into a top-class racing and community venue
Mackay Turf Club
$18

Not started
COMMUNITY INF. TOTAL


$457


CONSTRUCTION
Andergrove Urban Development Area
Up to 180 lots on site, quality affordable housing
Urban Land Development Authority
$4.2
11’-12’
In Progress
Andergrove UDA – stages 2-3
Development approval for 41 residential lots on Bedford road, Andergrove
ULDA
$4.8
 2010
Not started
Blacks beach Cove
Housing development in Blacks beach. 850 site, 350 developed so far
Private developer
$60
09’- current
In Progress
Breezes Retirement Resort
Residents community centre, over 50’s lifestyle village with 221 two and three bed villas. Stage 1 = 206 homes and 11 apartment
Becton Property Group

07-11
In Progress
Bunnings Warehouse
Proposed hardware store for Holts Road, Richmond
Bunnings Warehouse

2010
Not started
East Point
Integrated development including an international standard hotel, apartment complex, resort villas, retirement villas, retirement village, shopping village, residential lots and a cultural centre – 250 rooms
Eastpoint Mackay Pty Ltd
$150
12’-20’
In Progress
Glenrowan residential estate
340 lots, built in stages, stage 1 and 3A developed and sold with houses built. AV Jennings now doing balance of stages 2-9
AV JENNINGS Mackay Pty Ltd
$34
07-current
In Progress
Inspire CBD
Office precinct, retail. 149 room hotel and 130 residential unit and townhouse development
Pointglen developments
$170

Not started
Leichardt on river
11 story mixed use development comprising dual key, residential apartments and restaurants – 168 rooms total
Martinek Pty Ltd
$35

Not started
Nabilla meadows
500 lot subdivision at Marian
Pointglen developments
$20
10’
In Progress
NB services
5 warehouses and offices for “service” industry use
Gros-Dubois
$2.5

Not started
Pacific Parks Estate
9 stage development with parklands, open spaces, rec facilities, high and low density
Pacific property developers

07-10’
In progress
Parklands Estate
Refurbishment and development of buildings to accommodate mixed residential, commercial and retail uses
Nebo Rd Pty Ltd
$102

Not started
Pioneer lakes
Stages 1-8 33 residential lots with further exoansion to include another 170 lots. Stage seven will include 173 retirement villas. Also industrial and childcare
Pioneer lakes pty ltd

09
In progress
Plantation Palms
2000 residential lot estate in the Northern beaches. 60% parkland.
Xcel properties
$1,500
07-20’
In progress
Richmond Hills
500 lot residential subdivision
Pointglen developments
$200

Not started
Settlers Rise
100hectare masterplanned 12 stage community
Cougar Development
$120
2011-
In progress
Shoal Point Waters
Small tourism precinct with commercial facilites, high & low density residential developments. Over 1000 alotments
Pointglen developments
$600
01’-11
In progress
The Beach
Four stage residential development
Pacific coast developments
$200
07’-
In Progress
The Pier
2 residential towers, restaurants & Boardwalk. 54 apartments

$87
07-
In Progress
The Waters @ Ooralea
236ha housing estate including 250 retirement dwellings. 10,000sqm commercial and 2321 house and unit sites
Cougar developments
$80

In Progress
Town beach Dev.
Tourism/res. 266 units, 15 houses, retail
Pointglen dev.
$150

Not started
Universal Self Storage
Self storage facility
Pilot Group
$4

Not started
WaterFront Landing
9 story residential complex. 41 units
JD Dodds
$35

Not started
TOTAL CONSTRUCT


$3,558.5


MANUFACTURING/INDUSTRY
Evolution Paget Industrial Estate
242,073 SQM industrial. 41 lots. High impact industry zoning
Mirvac & ICPS
$200
08’ -
In Progress
Harbour City Central
32 Industrial sheds/office development
Res. Dev. Mackay
$20
08-11
In Progress
Industroplex
Industrial Estate stages 5 and 6
FKP Property
$40
11-12’
Not started
South Mackay Industrial Estate
Major industrial estate
QLD dept infrastructure and planning
$7
08’-
In Progress
TOTAL MAN./IND.


$267


PORTS (AIR & SEA)
Dalrymple Bay Coal Terminal 9X
Construction of another 2 berths, 2 rail recieveal routes and new stockyards
North QLD Bulk Ports Corporation


Not Started
Dalrymple Bay Coal Terminal 8X
Work on existing yards
NQBPC
$1,000
09-18’
Not started
Dudgeon Point Coal Terminals
3 new coal terminals to join Dalrymple bay and hay point. Expanded port will export between 250 – 300 mtpa
NQBPC
$8,000
2013
Not started
Hay point coal terminal expansion
Port capacity to increase from 44mtpa to 55mtpa
BHP/Mitsubishi alliance
$2,340

In progress
Mackay marina expansion stage 4
Stage 4 planned with approximately 50 more berths
Port Binnli
$8
2010-
Not started
Mackay Airport upgrade
Terminal and runway revamp/upgrade
Mackay Airport
$10
10-100’
Completed
TOTAL PORTS


$11,358


PROFFESIONAL SERVICES
Dentist Training facility
Dental training facility and refurbishment of a 32 unti comples for student accomodation.
James Cool University
$2.57

Not Started
Emmanual Catholic Primary School Expansion
Classrooms and school hall expansions
ECPC
$2.8
09-11
In Progress
GP Super Clinic
Construction of GP super clinic
Aust. Govt.
$7

Not started
Mackay Christian College Campus Dev.
Development of a new primary school campus and a mutli purpose hall
Mackay Christian College
$15
09-11
In Progress
Mackay GP superclinic
Construction of new GP super clinic with 12 rooms, pharmacy, chiropractor, dentist etc
Dr John Mcintosh

10-11
In progress
Mater Hospital Clinical training facility
Construction and fitout of a new 2 story clinical training facility  at the Mater Hospital
James Cook University
$2.6

Not started
SMART centre
Sustainable Mining Automation and Robotic Technologies Centre
CQ University
$42
2012
Not Started
TAFE training centre
Engineering College for apprentices and adult learners
TAFE
$32.5
2012
Not Started
TOTAL PROFFESIONAL

$104.47


RETAIL
Bunnings Warehouse
New bunnings warehouse approved
Wesfarmers
$30

Not started
Canelands Central Expansion
Expansion of existing major retail centre & MYER. From 38,000 SQM to 66,000 SQM.
Lend Lease
$220

In Progress
Dan Murphy Mt Pleasant
Expansion of Mt Pleasant Tavern to include Dan murphy’s store
Dan Murphy
$5

Not started
Homemaker centre
Bulky Goods Homemaker centre
Lancini group
$60

Not started
Marian Town centre
3200sqm supermarket, 1500sqm specialty stores, 36 lot residential subdivision
Tipalea Partners
$38

Not started
Mt Pleasant shopping centre
Expansion to mount pleasan shopping centre
Colonial First State
$50

Not started
Northern beaches central expansion
Stage 2. Woolworths, McDonalds, 17 specialty stores, 3 commercial suites. Bilo will change to coles.
Stockwell Building and Development
$250

In Progress
Orchid valey commercial
Retail convenience centre in Marian
Equitrust
$20

Not Started
The Avenue
Mixed use development
Woollam
$10

In Progress
TOTAL RETAIL


$683


ROADS
Mackay Regional Council & dept. main roads

$407.3


Tourism





Aus south sea islander cultural centre
Diversified tourism attractions including visitor info centre
Mackay Tourism
$6.9

Not Started
Clarion Hotel extension
50 rooms
Clarion hotel Mackay


Not started
Eungalla EDGE Project
Eco resort
Mackay Tourism
$13.2

Not started
Harrup Park country club
70-100 room proposed accomodation
HPCC
$10

Not started
The Beacon
12 story development with 23 x 3 bed apartments
Port Binnli
$30

Not started
TOTAL TOURISM


$60.1


MINING – Incorporating Mackay, Isaac & Whitsunday Regional Councils
Anthony Molybdenum Open Cut mine
Isaac regional Council (IRC)
Zamia metals
$200
2015
Not started
Broadmeadow Underground expansion
IRC
BMA
$850
2013
Not Started
Byerwen Open Cut
IRC – 10mtpa coking coal
Qcoal
$1,500
2013
Not started
Charmichael coal mine – Rail line
IRC – From Charmichle mine to Moranbah to join Goonyella rail system to Hay point.
Adani Mining
$6,900
11-14
Not started
Charmichael Open Cut mine
IRC – up to 60M thermal coal
Adani Mining
$4,100
2014
Not started
Caval ridge mine
IRC – Open cut coal mine (5.5mtpa)
BMA
$4,000
2014
Not started
Codrilla Open Cut mine
IRC - 3.2mtpa PCI & thermal coal
Macarthur Coal
$250

Not started
Daunia Coal Project
IRC – new open cut coking coal and PCI. (4.5mtpa)
BMA
$1,600

Not started
Drake Mine
WRC - Open cut coal mine, 17km south Collinsville
Qcoal
$350

Not started
Eagle downs underground
IRC - New underground mine producing 4.6mtpa coking and PCI coal
Aquilla resources/Vale
$988

Not started
Dysart east open cut & underground mine
4mtpa coking coal mine
Bengal coal Ltd
$450

Not started
Eaglefield downs underground – stage 1
New underground mine producing 6.8mtpa
Peabody
$1,400

Not started
Ellensfield underground coal project
IRC - New underground mine for coking and thermal coal. 4.7mtpa
Vale Australia
$640

Not started
Foxleigh Plains
IRC - Expansion to 3.3mtpa
Anglo American
$620

Not started
Goonyella riverside expansion
IRC - Expansion project to  21mtpa
BMA
$1,000

Not started
Grosvener underground coal
IRC – Construction and operation of new longwall mines. 6.5mtpa coking coal
Anglo American
$1,300

Not started
Isaac Plains Coal
IRC – increase production from 1.9 mtpa to 2.8mtpa
Aquilla
$118

In Progress
Jax open cut mine
WRC - 1.8mt coking coal
Qcoal


Not started
Jellinbah east open cut
IRC – mine expansion/extension to 2mt
Jellingah group
$100

Not started
Lake Vermont
IRC – expansion of lake Vermont mine to 6mt capacity
Lake Vermont resources
$220

Not started
Lenton Open cut
IRC - New mine producing 1.5mtpa coking/thermal
New hope coal
$120

Not started
Middlemount Coal Project
IRC - New open cut mine. 3mtpa
Macarthur
$500

In progress
Millenium open cut expansion
IRC - Expansion of current mine
Peabody
$276

Not started
Moorvale underground expansion
IRC - 2mt coking and PCI
Macarthur
$180

Not started
Moranbah south project
IRC - New underground mine producing 3.5mtpa coking coal
Anglo American
$1,300
Finish 2017
Not started
Mt Carlton open cut
WRC - Copper-Gold-silver mine
Conquest mining
$127

Not started
Newlands Northern underground
IRC - 7.5mtpa thermal coal
NCA JV (Xstrata coal ltd 55%)
$140

In progress
Olive Downs Nth Open cut coal project
IRC - New open cut mine to produce 1mtpa
Macarthur coal
$20

In Progress
Peak downs open cut expansion
IRC - Expansion from 9mtpa to 11.5mtpa
BMA
$1,000

Not started
Saraji East open cut
IRC - New underground mine to produce 5mtpa
BMA
$1,000

Not started
Sarum open cut and underground
WRC - New project to produce 5mtpa
Xstrata
$700

Not started
Talwood
IRC - New mine to produce 2mt PCI & thermal
Aquilla resources


Not started
Twin hills gold-silver
IRC – redevelopment trial mining planned
Conquest
$6

Not started
Wilunga Open cut
IRC – pre-feasability underway
Macarthur


Not started
Winchester sth open cut
IRC – 4mtpa coking and thermal
Rio Tinto


Not started
TOTAL MINING


$30,855








TOTAL INVESTMENT IN MACKAY REGIONAL COUNCIL


$17,118,37




References: REDC & Mackay Regional Council