Tranquile in the Whitsundays

Mon, 2008-03-31 08:30 — Guest

What is the Tranquile resort project?
 

  • Tranquile is a mixture of 2 and 3 bedroom townhouses and apartments, plus some dual key 3 bedroom apartments set on a 2.15 hectare site. NOTE there are no 3 bedders or dual key apartments left available.
  • Central lagoon style pool and spa
  • Intercom security

 
Why is Tranquile such a SOUND investment?
The underlying reason is that there is very little land left to be developed in the area as it is surrounded by National Parks.
The median price for land in the 12 months to June 2006 increased by 45.6 percent, and the five year annual growth rate to June 2006 was 33.6 percent (Source: PRDnationwide Whitsunday Research & RP Data). So it doesn’t matter what you build on it, if the cost of your land is going up at that rate, then that is where tomorrow’s capital growth in residential property will flow from – the lack of supply to meet demand.
Why invest in Tranquile?
Wisdom states that you make your profit in an investment property deal not when you sell but when you buy – and that is the opportunity you have with Tranquile – the opportunity to buy off the plan, and obtain all the advantages that come with that.
The most common reason for buying off-the-plan is the attraction of buying a new property at today’s prices but not having to pay for it right away. In a strong property market this locks in the price so that when it comes time to settle on the property you already have built in equity through capital growth during construction of the project. And you can enter into the contract by just putting a 10% deposit bond in place for a minimal outlay.
Capital Growth
Your best tool for predicting future capital growth is undoubtedly past performance – if a location has shown sustained growth over a reasonable period in the past, you can rest assured that unless something drastic has happened, then the same fundamentals will provide for similar growth into the future.
The Cannonvale Unit/Townhouse/Duplex Annual Median Price Growth Rates as at December 31, 2006 were as follows:

  • Last Ten Year’s Growth Rate 14.9 percent p.a.
  • Last Five Year’s Growth Rate 25.9 percent p.a.
  • Last Year’s Growth Rate 25.0 percent p.a.

Of the 79 units/townhouses/duplexes sold in the six month period ending December 2006, 53 were re-sold properties. These properties were held for an average time of four years and generated an average capital growth of 15.9 percent. (Source: RP Data)
What is happening in Airlie Beach and Cannonvale?
Current and planned projects providing continuing employment and spending into the local economy include:

  • A $750 million golf course resort to be built over the next ten years
  • Gold Coast-based Resort Corp's $130 million five-star resort and convention centre
  • $120 million first-stage integrated residential estate by Clough Property Developments Pty Ltd

These developments join another $1 billion in projects already approved and waiting to start plus another $1 billion worth of development under way, which include the $500 million Port of Airlie Marina which will add 240 marina berths, a hotel and luxury residences.