ARTICLE FROM THE AGE
'Reef change' drives investment
"Big developers are fighting for a piece of Palm Cove, writes Stephen Dabkowski.
There is a variation emerging in the traditional sea-change phenomenon to explain the major investment in coastal development. It is being called "reef change", and it probably explains why around $1 billion is expected to be invested in just one small north Queensland town by the end of the decade.
Palm Cove, which is 20 kilometres north of Cairns, has barely two kilometres of beachfront, but that hasn't stopped the biggest developers in Australia fighting to grab a piece of it.
The biggest new development in the area is the $450 million Argentea project being backed by Thakral Holdings and Babcock & Brown.
The first stage of this project, was launched a few months ago and has already sold heavily. Eventually, 930 dwellings will be spread over a 35 hectare site, with more than 20 hectares retained as natural forest.
It was Thakral Holdings managing director John Hudson who coined the phrase "reef change", as cheaper air fares and increased airline capacity are making north Queensland and places like Palm Cove potential long-weekend getaways for people in Melbourne and Sydney.
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Advertisement"We know that the Argentea site is very special due to the local biodiversity of the area. We have made the environment a focus in order to set a new benchmark in integrating resort-style living while protecting the environment," he said.
Development has been a way of life in Palm Cove for the past three years. In 2004 Juniper completed the first resort in its Sea Temple chain at Palm Cove.
Juniper reported just last week that a penthouse in the Palm Cove project originally bought off the plan for $775,000 had resold for $1.05 million.
Indigo's project, Drift at Palm Cove, will be a $70 million transformation of the 189-room Clarion Resort into 123 self-contained apartments.
The units will cost from about $270,000 up to $1.4 million, fully furnished. However, the asking prices for beachfront villas range from $2.7 million to $3 million.
Also being advertised nationally at the moment is a 18,520 square metre parcel previously known as Triton Palace in the heart of Palm Cove - with beach frontage - which is being tendered with a deadline of August 10. Once new owners have been found another major development will be under way.
Triton Palace - which was supposed to have a major new Sofitel hotel and development - is one of the few projects in Palm Cove that didn't immediately take-off.
The Amphora Resort - also completed by Thakral - was only opened a year ago and the Novotel Palm Cove on the edge of the town is being redeveloped into a master-planned community after also getting new owners this year.
The biggest new development in the area is the $450 million Argentea project.
Photo:Carolyn Cummins
If ever it was possible to create a "destination" for tourists and developers - which like Port Douglas or the Gold Coast only require their name to describe their features - Palm Cove is fast becoming another example.
It has been carefully shaped over years of planning to turn into what some are calling the "Noosa of the north". Some forward-thinking beautification of the beachfront years ago was inspired by the popularity of Hastings Street in Noosa.
Melbourne-based developer and architect Leigh Ratcliffe played a large role in convincing the local council more than a decade ago to turn the front strip along the beach into an enjoyable boulevard.
He also played a role in at least two subsequent developments in Palm Cove, including the Outrigger Beach Club.
He remembers coming to Palm Cove 20 years ago, when beachfront property was available for a small fraction of house prices in Melbourne and Sydney.
The council has been strict in not allowing any development to exceed the height of the palm trees that line the front beach - three storeys.
"That's the secret of Palm Cove. It's got the beauty, but restrictions on the size of the development has meant it has retained its village feel. Now cafes and restaurants have sprung up along the front strip," Mr Ratcliffe said.
According to PRDnationwide Consulting, as demand for living in the area has grown and the major developers have arrived, house prices across the board have risen. It says the median house price in December 1999 was $190,000, whereas in December 2004 it was $625,000.
"This growth represents an annual compounding growth of 27 per cent. This highlights the premium associated with the Palm Cove brand," PRDnationwide said in a recent analysis.
New unit sales in projects from Cairns to Port Douglas totalled $92.6 million in the March quarter - above expectations - a track record expected to encourage even more development along that valuable strip of land.
Regards
Daya
'Reef change' drives investment
"Big developers are fighting for a piece of Palm Cove, writes Stephen Dabkowski.
There is a variation emerging in the traditional sea-change phenomenon to explain the major investment in coastal development. It is being called "reef change", and it probably explains why around $1 billion is expected to be invested in just one small north Queensland town by the end of the decade.
Palm Cove, which is 20 kilometres north of Cairns, has barely two kilometres of beachfront, but that hasn't stopped the biggest developers in Australia fighting to grab a piece of it.
The biggest new development in the area is the $450 million Argentea project being backed by Thakral Holdings and Babcock & Brown.
The first stage of this project, was launched a few months ago and has already sold heavily. Eventually, 930 dwellings will be spread over a 35 hectare site, with more than 20 hectares retained as natural forest.
It was Thakral Holdings managing director John Hudson who coined the phrase "reef change", as cheaper air fares and increased airline capacity are making north Queensland and places like Palm Cove potential long-weekend getaways for people in Melbourne and Sydney.
Advertisement
Advertisement"We know that the Argentea site is very special due to the local biodiversity of the area. We have made the environment a focus in order to set a new benchmark in integrating resort-style living while protecting the environment," he said.
Development has been a way of life in Palm Cove for the past three years. In 2004 Juniper completed the first resort in its Sea Temple chain at Palm Cove.
Juniper reported just last week that a penthouse in the Palm Cove project originally bought off the plan for $775,000 had resold for $1.05 million.
Indigo's project, Drift at Palm Cove, will be a $70 million transformation of the 189-room Clarion Resort into 123 self-contained apartments.
The units will cost from about $270,000 up to $1.4 million, fully furnished. However, the asking prices for beachfront villas range from $2.7 million to $3 million.
Also being advertised nationally at the moment is a 18,520 square metre parcel previously known as Triton Palace in the heart of Palm Cove - with beach frontage - which is being tendered with a deadline of August 10. Once new owners have been found another major development will be under way.
Triton Palace - which was supposed to have a major new Sofitel hotel and development - is one of the few projects in Palm Cove that didn't immediately take-off.
The Amphora Resort - also completed by Thakral - was only opened a year ago and the Novotel Palm Cove on the edge of the town is being redeveloped into a master-planned community after also getting new owners this year.
The biggest new development in the area is the $450 million Argentea project.
Photo:Carolyn Cummins
If ever it was possible to create a "destination" for tourists and developers - which like Port Douglas or the Gold Coast only require their name to describe their features - Palm Cove is fast becoming another example.
It has been carefully shaped over years of planning to turn into what some are calling the "Noosa of the north". Some forward-thinking beautification of the beachfront years ago was inspired by the popularity of Hastings Street in Noosa.
Melbourne-based developer and architect Leigh Ratcliffe played a large role in convincing the local council more than a decade ago to turn the front strip along the beach into an enjoyable boulevard.
He also played a role in at least two subsequent developments in Palm Cove, including the Outrigger Beach Club.
He remembers coming to Palm Cove 20 years ago, when beachfront property was available for a small fraction of house prices in Melbourne and Sydney.
The council has been strict in not allowing any development to exceed the height of the palm trees that line the front beach - three storeys.
"That's the secret of Palm Cove. It's got the beauty, but restrictions on the size of the development has meant it has retained its village feel. Now cafes and restaurants have sprung up along the front strip," Mr Ratcliffe said.
According to PRDnationwide Consulting, as demand for living in the area has grown and the major developers have arrived, house prices across the board have risen. It says the median house price in December 1999 was $190,000, whereas in December 2004 it was $625,000.
"This growth represents an annual compounding growth of 27 per cent. This highlights the premium associated with the Palm Cove brand," PRDnationwide said in a recent analysis.
New unit sales in projects from Cairns to Port Douglas totalled $92.6 million in the March quarter - above expectations - a track record expected to encourage even more development along that valuable strip of land.
Regards
Daya
