Sunday, November 30, 2014

Terry Ryder cuts loose on Aquis; retains buy on Cairns

Just over a year ago I posted an opinion from well know real estate commentator Terry Ryder on Cairns and Aquis: Reasons to invest in Cairns?
There are many reasons to consider buying in Cairns. But a grandiose plan for a $4.2 billion resort complex should not be one of them.

Ryder came out again this week with a positive opinion on the Cairns property market and a spray at Aquis: Not all doom and gloom for Cairns, despite $8 billion resort falling through
The most predictable thing to happen in Australian real estate this year is the decision not to proceed with an $8 billion resort in Cairns. 
The alleged Hong Kong billionaire who was allegedly planning to spend billions building an extravaganza in North Queensland has reportedly decided to spit the dummy because he can’t get what he wants. 
Terry's comments on recent  property performance in Cairns are more exuberant than I currently think is justified given the so far modest recovery in median values more broadly across the city has been patchy but regardless:

Here’s the question every investor must ask when they get excited about a location on the basis of one major proposed event: If this major event does not go ahead, is this still a good place to invest?
If the answer is no, don’t buy there.
Fortunately, the answer in the case of Cairns is yes. For the past two years, I have been recommending Cairns a good place to consider for property investment. The Fung furphy was never part of the equation that led me to that recommendation. When I first put Cairns in my hotspots reports, the grandiose resort had not been announced.
Cairns stacks up for other reasons...........

The City Leaders are having nothing of any "Fung furphy" and cheered on by the Cairns Post have journey'd off to Hong Kong bearing gifts of frankincense, gold and myrrh: Cairns Mayor Bob Manning leads delegation to show support to Fungs over Aquis casino resort plan

I wasn't previously aware or missed that Fung had also donated $10,000 to the LNP sometime last year*. Maybe that's why he was so annoyed when probity wasn't simply waived through? Always uncomfortable with such a close alignment of politics, business and media in what can be an insular provincial culture. There was a good lesson of where things can go badly wrong in those circumstances a few decades ago: With a nod and a WA Inc


* http://www.parliament.qld.gov.au/Documents/TableOffice/TabledPapers/2014/5414T5411.pdf
* http://www.parliament.qld.gov.au/documents/hansard/2014/2014_07_15_EstimatesSDC.pdf


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