Darwin-Inpex decision getting closer

[Ajax]

http://www.ntnews.com.au/article/2011/05/18/233491_nt-business.html

http://www.dredgingtoday.com/2011/0...ter-approves-inpex-project-in-darwin-harbour/

http://www.upstreamonline.com/live/article256741.ece

"Australia’s Northern Territory has given its approval to the development of a LNG plant in Darwin Harbour for the Japanese company Inpex’s Ichthys project, clearing the way for a Federal Government decision. "


http://www.businessweek.com/news/20...nth-after-australia-lng-project-approved.html

"Inpex Rises Most in a Month After Australia LNG Project Approved
May 17, 2011, 8:49 PM EDT
May 18 (Bloomberg) -- Inpex Corp., the operator of the proposed Ichthys liquefied natural gas project in Australia, rose the most in a month in Tokyo trading after winning government approval to proceed with the venture.

Inpex gained 3.4 percent to 555,000 yen as of 9:04 a.m. on the Tokyo Stock Exchange, headed for the biggest advance since April 21. The benchmark Nikkei 225 Stock Average climbed 0.7 percent."

Final decision by Inpex is expected in the last quarter of 2011.

Might result in a reversal of house price trands...Darwin house prices down about 2.5% over the last 12 months in some reports.

http://www.inpex.com.au/careers/darwin-vacancies.aspx

"As the Ichthys Project nears a final investment decision, INPEX will be increasing its presence in Darwin. We have already established a Darwin office.

To better facilitate recruitment, INPEX has created the Darwin careers page to provide direct access to local job vacancies, as well as an opportunity to lodge an Expression of Interest (EOI) for a career with INPEX.

If you are interested in working for INPEX, we encourage you to create a personal profile within the career portal to either apply for a specific role in our vacancies section or lodge an EOI for future roles. Your details will be stored confidentially in a database which INPEX will use to search for candidates to fill vacancies as they arise.

Please ensure you provide as much detail as possible on your work history to enable INPEX to better match potential candidates to suitable roles. Once your profile is established, please return and update your information as required. "

 

[Ocean Architect]

Everyone is waiting with baited breath about the Inpex final decision, which will likely come towards the end of the year. There are at least 15 highrise buildings in Darwin that I know of on hold because they can't get finance, and buyers are a little skittish or can't get finance themselves.

If the deal goes through, you're looking at billions per year being pumped into an economy of 100 000 people. Much of the work is going to be done overseas and freighted over here by ship, but there is still a lot of peripheral construction that will go on done by local contractors, which imo makes Darwin a good candidate for either CA or at least, shielded from price contraction in other states.

Simultaneously, this years NT budget includes 1.5 billion in infrastructure spending, which will obviously contribute.

Imo stay away from CBD structures because they're oversold (the inside numbers on those are horrible, plus banks are freaking out and refusing to supply finance) but we should see a good pick up in suburban developments right away. If you do go the CBD route the time to buy is probably now, where are lot of distressed sellers/developers are selling cheaply, and if the inpex deal goes through there is the potential to do well on those ones, but long term holding at sticker prices is risky imo.

Disclaimer: I am constructing a suburban highrise, but am not spruiking. Do your due diligence and I don't want to hear anyone saying I'm trying to sway market sentiment. I just personally think it's a good idea based on market fundamentals compared to other capitals

 

[want2bewealthy]

Well. I was speaking with my boss this afternoon after his meeting with Inpex Boss regarding another project we're undertaking and upon questioning this is what he said:

'I've been working on this project for 10 years now and have spent $190,000,000 within that period. Do you really think we're going to pull out now. . ?'
This was followed by a hearty laugh from both parties alike.

In my opinion. If you are looking to buy in Darwin, now is the time to do it.
I've been on the ground attending open inspections all around, city, rural, and Palmerston for the past two months.

 

[Ocean Architect]

Well. I was speaking with my boss this afternoon after his meeting with Inpex Boss regarding another project we're undertaking and upon questioning this is what he said:

'I've been working on this project for 10 years now and have spent $190,000,000 within that period. Do you really think we're going to pull out now. . ?'
This was followed by a hearty laugh from both parties alike.

Yeah but they also upped the investment from 7 billion to 30 something billion. Until they spend serious money on actual infrastructure, I'm on the sidelines. That being said, I hope to the tips of my toes that it goes through, cos if it does, I'm set bigtime

 

[redwing]

My sister in Darwin has recently moved out to Humpty Doo and despite the "beyond the black stump" name...its still expensive

 

[Jody in Darwin]

Imo stay away from CBD structures because they're oversold (the inside numbers on those are horrible, plus banks are freaking out and refusing to supply finance) but we should see a good pick up in suburban developments right away. If you do go the CBD route the time to buy is probably now, where are lot of distressed sellers/developers are selling cheaply, and if the inpex deal goes through there is the potential to do well on those ones, but long term holding at sticker prices is risky imo.

I agree totally with what you are saying OC.

From a property management perspective there have been long periods in the last few years where the 0800 postcode vacancy rates were over 10% - even up to 12%!!! When a balanced market is generally agreed to be a 3% (& I saw a well argued case for 2% being the new 3% recently) - a 12% vacancy rate is insane. This rate was due to the excess of executive stock (over $600 per week) and compounded recently by the local downturn. Investors who didn't meet the market had their properties sit vacant for months (defeating the purpose of the exercise in my opinion).

If the Inpex project goes ahead, the executive market in the city will definitely pick up. Inpex are already pricing new to market, fully furnished 1 bedroom units - with a max. of 100 in the 4-5th (final) year of construction, despite their plans to have a workers camp in the rural area.

KR,
Jody

 

[kero]

sealed, signed and delivered

not to mention the federal govt giving the tick on the enviromental approval.

 

[MJD]

I am glad that Inpex is going ahead, one of my property in Palmerston was vacant for 8 weeks, eventhough rent reduced. Anybody experience the same ?
MJ

 

[Ajax]

Federal government environmental approval is another milestone acheived.

From page 4 Fin Review today (29 June 2011)..."Japan's Inpex has secured government approval for its $US25 billion Icthys liquified natural gas project in northern Australia...A final decision (by Inpex) on the project is slated for the December quarter".


And this from Fairfax media regarding the robust financials of the Icthys project:-

"The Ichthys project is considered more robust than most other proposed LNG export projects in Australia because its gas will come to the surface with a rich stream of condensate (light oil) and other petroleum liquids. The condensate and other liquids will be stripped from the gas stream at Ichthys's offshore location, with the gas then piped to the LNG plant in Darwin for eventual export, mainly to Japan."

http://www.businessday.com.au/business/gas-project-green-to-go-20110628-1gp3s.html

 

[kero]

mjd, which suburb in palmy are you in? i have been renting out my place to the same tenant for the past 4 1/2 years and the IP is in palmy.

8 weeks vacant is quite unheard off in darwin. are you charging high rent? i think the rental market has cooled a fair bit since late last year.

 

[MJD]

thanks Kero
my IP is in Bakewell, rent reduced to the price of 2 year ago ( 420pw for 3 beds home).

 

[Darwinite]

MJD I have just experienced the same thing, duplex in Gray and it also took 8 weeks. I had to reduce the rent significantly which is $80 under what similar duplexes rented for 2 years ago. Hopefully the increase in Defence personnel will also boost the slowing market. Really hoping Inpex do make a decision this year and don't drag it out any longer.

 

[kero]

i hope the situation improves guys.

mine is in durack. my PM did mentioned rents are slowing tho.

 

[Ajax]

This article is promising

http://www.steelprices-china.com/ne...O_pipes_in_September_for_Ichthys_project.html

"700000 tonnes of UO pipes in September for Ichthys project - 25 Aug, 2011
TEX reported that negotiations on 700,000 tonnes of UO pipes for the Ichthys project of which development is led by Inpex Browze, the subsidiary of Inpex Corporation of Japan is anticipated to come to the most important stage as early as in September 2011..."

 

[SamSiam]

I lived in Darwin years ago....had 5 acres at Humpty Doo, wish I still did now.

 

[NBS]

Heading Darwin way myself, be there Wednesday in fact for a month, but looking around Anula, Wagaman Jinguli areas. Daughter lives Anula so Wife want to be close otherwise I would head out Humpty Doo Coolinga way. Looking forward to the trip.

Brian

 

[Ajax]

Another article on Darwin:-

http://www.ntnews.com.au/article/2011/08/27/256321_realestate.html

SiamSam.

5 acres at Humpty Doo would have been a great investment.

What interests me is the 5000m2 blocks closer in to Darwin. Amazes me you can buy these blocks (at a significant price) 20 minutes away from a capital city.

 

[investor2009]

No way.. I believe your IP is in the same street as where one of ours is..!

We watched it plummet each morning on the way to work from the high 4's to $400 in the end unfortunately. Tough times indeed. We were expecting our let to be of the same nature but it was rented within a week for full price just last week. But we had spent lots of money on it and had it furnished really nice. It looks nowhere near as appealing unfurnished and I'll bet we would be in a similar predicament if we'd moved out earlier.

thanks Kero
my IP is in Bakewell, rent reduced to the price of 2 year ago ( 420pw for 3 beds home).

 

[Ajax]

Just had a look at property for sale in Gunn.

Was surprised to see almost half were under contract

http://www.realestate.com.au/buy/pr...activeSort=price-asc&includeSurrounding=false

The Inpex decision is gettign closer. This article says decision in November.

http://www.ntnews.com.au/article/2011/09/12/259791_nt-business.html

Japanese gas company Inpex is expected to make a decision in November on whether to build a gas plant near Darwin which could take up to 3000 construction workers at its peak.

And this:-

http://www.theaustralian.com.au/new...-in-the-pipeline/story-fn6njxlr-1226122979392

"this tiny capital of about 120,000 people, perched closer to some Asian cities than to the main Australian capitals, is facing an enormous - $20 billion - infrastructure build connected with the INPEX liquefied natural gas project. LNG from the Indian Ocean will be piped 820km to Darwin for processing, storage and export.

The final INPEX go-ahead is expected this year. Once it begins, this $20bn spend will put ferocious pressure on Darwin's infrastructure and its capacity to house the expected population boom, which, by some reckonings, might double Darwin's present 120,000-strong population in decades."

 

[Jaggannath]

MJD I have just experienced the same thing, duplex in Gray and it also took 8 weeks. I had to reduce the rent significantly which is $80 under what similar duplexes rented for 2 years ago. Hopefully the increase in Defence personnel will also boost the slowing market. Really hoping Inpex do make a decision this year and don't drag it out any longer.

I wouldn't count on it, Defence seems to be moving away from Darwin. Boat people patrols will be run from Learmonth in the near future IMO, and they've already re-located Army to Edinburgh.