I’ve been having a look at the Canungra area. Briefly, the Aquis group, run by Chinese billionaire Tony Fung and his son Justin Fung, have bought Nathan Tinler’s Patinack Farm, which is about 4 minutes from the Canungra township. These are the guys who have bought Canberra Casino, and also have a huge development planned in Cairns. According to the net, Aquis is running the Canungra site (now called Aquis Farm) as a thoroughbred facility for now to generate income while they develop their plans, which are said to include a golf course and resort (http://www.beaudeserttimes.com.au/story/3412420/top-gold-coast-trainer-moves-into-former-patinack-farm-site/)
In the last 2 months, prices seem to have jumped in Canungra http://www.yourinvestmentpropertymag.com.au/top-suburbs/qld-4275-canungra.aspx.
Quite apart from Aquis Farm, the suburb seems fairly solid to me; it has an army base nearby, lots of passing tourists, and is only 32.6km to Surfers Paradise (https://www.google.com.au/maps/dir/Canungra,+Queensland/Surfers+Paradise,+Queensland/@-27.970785,153.2265968,12z/data=!3m1!4b1!4m13!4m12!1m5!1m1!1s0x6b9121177c31ea0d:0x502a35af3dea140!2m2!1d153.1646321!2d-28.0173054!1m5!1m1!1s0x6b910fe19fd1c2b7:0x502a35af3dea680!2m2!1d153.4283167!2d-28.0011707)
I’d like input.
(1) Is the recent apparent spike due to news of the planned resort, or some other factor?
(2) Are house prices in Canungra likely to continue rising?
(3) If the resort gets built, are they likely to increase further?
(4) Does anyone have any further information about the area that may be of interest?
(5) Is it a good spot to invest, do you think?
Thanks for your input.
Originalsinner.
P.S: a few more relevant links, in case anyone is interested:
http://www.beaudeserttimes.com.au/story/3010487/big-plans-for-horse-properties/
Hi OS,
I know nothing more than the next bloke about Canungra. It is a pretty little town that has become a bit of a meeting place for travellers, and there has been some (limited) growth in the centre of town over the last several years. It was always (for me) a place to drive through, rather than “to go to” – as there was nothing there that would attract me, apart from the occasional “pub lunch” when touring.I was rather shocked at the figures you showed (Returns around 4%, median values ~$450k, rents $390) as I would have expected differently (like, more positively geared, and lower cost). Anyway, though the growth figures presented could indicate a growth spurt, they could also be a factor of the low sales. e.g. With just 23 sales, the median value will be the twelfth from the bottom, or from the top. ie. the middle price of 23 prices.
Now, we KNOW four of those prices were for Mr Fung buying up large lots and this would likely have lifted the median by occupying the top four places on the list of 23. If NO real movement were happening, the median would still reflect the value of “Eighth from the top of the rest, with twelve more homes below that new median” – thus lifted somewhat from normal. IYKWIM – it is hard to explain…..
One to watch – I don’t know for sure WHEN Mr Fung’s purchases would have actually shown up (did he buy them 3 months ago?). I guess one would need to visit there to assess the mood, and talk with RE agents and shop-owners to get a better feel for what is really happening. Anyway, OS, thanks for letting us know. I will take a bit more notice of things when I next pass through Canungra.
Benny
I think the Patinack properties changed hands sometime around March 2015, so well before the last 2 months.
Thanks for your response Benny, I appreciate your thoughts!
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