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CONSTRUCTION Skills Queensland (CSQ) has identified seven major trends in the construction industry that are having an impact right now in the state – and elsewhere in Australia.

From this research, to help construction companies plan ahead, Construction Skills Queensland’s Evidence and Data Team put together a list of hot trends likely to shape the industry in 2016. 

Return of new builds – Traditionally new builds account for about nine out of 10 building projects in Queensland, with the balance coming in the form of additions, alterations and conversions. In the years following the Global Financial Crisis (GFC), many people opted to renovate instead of build new, so the proportion of new builds dropped to as low as 80 percent. Data indicates the historical pattern is being restored, and CSQ predicts the share of new builds will stabilise around the 90 percent norm in 2016.

Healthy residential sector – Residential building has been picking up the slack left by the steep wind-down in mining construction in recent years. Both 2014 and 2015 saw double-digit growth in building starts in Queensland. While this trend will soften in 2016, CSQ expects solid single-digit growth for Queensland building starts, probably around 5 percent.

Labour surplus to peak – The decline in total construction activity across Queensland in recent years led to a surplus of construction workers. There are simply fewer projects than people ready to work. CSQ predicted this surplus would peak in 2016, and begin its return toward balance. It is estimated the number of unemployed construction workers in Queensland will average around 16,000 in 2016, about 8 percent of the construction workforce.

Prefabrication and modular homes – An increasing amount of both residential and commercial construction work will be completed in controlled building environments. Prefabrication has the potential to offer time and cost savings over conventional construction methods. CSQ is already starting to see whole townhouse communities built using modular components.

Timber resurgence – Cross laminated timber (CLT) or ‘tilt up timber’ is popular in Europe and North America. On the back of some recent successful trials here in Australia, CSQ expects this technology to be adopted more widely by the industry. Strong and lightweight, CLT offers a stylish alternative to concrete and can be used to form complete floors, roofs and walls. As a timber product, CLT is also often a more sustainable choice.

Smart homes – Home automation platforms are making it easier than ever for homeowners to centrally control entertainment, air-conditoning, lighting, appliances, alarm systems and locks from their tablets. These systems are becoming more common in new homes and often require complex electrical work to install.

Opportunities in installation services –  The Australian Government Department of Employment expects building installation services to become a substantial source of jobs growth over the next five years. The number of workers in the category, which comprises awnings, curtains, elevators, escalators, flywire screens and insulation, is set to jump by 20.7 percent over the next five years.

www.csq.org.au

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CSIRO research on future agriculture prospects across Australia’s north is underpinning early action in the region.

The CSIRO reports are being used to help drive investment in Northern Australia agricultural development, at events such as the recent Northern Australia Food Futures conference in Darwin on April 12, attracting more than 300 industry and government representatives. 

Northern Australia, comprising 40 percent of Australia’s land mass, is already the world’s fifth largest beef and sugar exporter, with 12 million cattle and 3000 sugar farms bringing in more than $3 billion each year.

According to the Australian science agency, CSIRO, this represents a only fraction of the region’s agricultural potential.

"With its highly variable landmass and four distinct climatic zones, northern Australia can support all sorts of agriculture and horticulture," CSIRO research director Peter Stone said.

Dr Stone said following the release of the Federal Government's Developing Northern Australia and Agricultural Productivity White Papers in June last year, CSIRO has been focussed on unlocking the potential of the area that stretches from the Pilbara to Rockhampton.

“More than 100 researchers are currently supporting the Australian Government to deliver on these commitments – looking at opportunities to innovate along the entire value chain, from the soil and water availability through to expanding market opportunities,” Dr Stone said.

The Northern Territory Farmers Association convened the Darwin conference, featuring expert panellists discussing topics such as regional and global investment, crop production and supply chains.

CSIRO chief research scientist Andrew Ash said a number of opportunities had stimulated renewed interest in agricultural development for Northern Australia.

“These include proximity to Asian markets, increasing global demand for food and natural fibre as well as the development of economically sustainable regional communities,” Dr Ash said.

"Understanding the agronomic opportunities and constraints in conjunction with development and operating costs and market drivers is crucial for northern Australia’s developing irrigated agriculture sector to be competitive and profitable.”

Dr Ash and his team are currently investigating development opportunities for irrigated agriculture in the region including sugarcane, cotton, peanuts and grains.

The inaugural Northern Australia Food Futures Conference was staged in 2014.

www.csiro.au

www.ntfarmers.org.au

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JEWEL, a $1 billion residential resort complex currently rising over the Gold Coast, is probably the most visible proof to date of how rising Chinese investment in Australian property development is changing the landscape forever.

The multi-tower residential and resort project is backed by Asia’s richest man Wang Jianlin, and is the largest single project of the estimated $12 billion in Chinese investment in Australian property in the last financial year.

As evidenced by his substantial investment in Jewel, Mr Wang – who is chairman of China’s largest property development firm Dalian Wang – has set his sights firmly on Australia, stating his home country no longer held potential for easy profits. Yet for China’s ever-widening middle class, the appeal of Australian real estate stretches well beyond such hgh-profile developments. 

A characteristic of Asian families is their determination to seek better educational opportunities for their children – and a feature of recent investment in Australia has been a preference for property located near reputable Australian schools and universities, countrywide. For those with the means, purchasing foreign real estate equates to a long-term investment that is safe from Chinese Government intervention.

According to the Foreign Investment Review Board, Chinese buyers of real estate accounted for close to half of the total $27.7 billion foreign investment in Australia in 2014.

Juwai, China’s leading international property portal, ranks Australia as the second most popular destination for Chinese buyers, just behind the US, with its appeal rising recently against the background of the softer Australian dollar.

While the big-ticket sales of waterfront mansions and grand commercial developments create headlines, mid-range off-the-plan apartments and family homes in the suburbs increasingly form a large segment of listings on Juwai – a Shanghai-based, Australian-founded Chinese language property website.

It all adds up to a seismic shift in the Australian property market – a shift that real estate agents are having to adapt to fast, according to Real Estate Results Network (RERN) chief executive, Michael Sheargold.

“The real estate industry has evolved at a rapid pace over the last few years, with agents now working within a truly international marketplace yet also having to adapt their business model to accommodate the differing needs of clients in those emerging markets,” Mr Sheargold said.

He said while the spoils of China’s dramatically increased buying power and relaxed central restrictions were once confined to major centres, offshore buyers were now eyeing property across the country – reshaping the playing field for real estate agents seeking to capitalise on this sizeable new segment of the market.

“Agencies looking to set their business on an effective course for development must not only keep their eyes open to industry change, but also engage with new technologies and strategies to ensure their business is pursuing those new leads as we see a strong continuing trend of investment from Asian buyers,” Mr Sheargold said.

He has been driving change within RERN, to provide spcialist industry training, support, mentorship and resources for real estate agencies wanting to understand and develop the growing China market..

He said with a surge of 400 percent in Chinese purchases of Australian real estate over the last five years, many property agents have employed Mandarin-speaking staff to provide assistance and handle negotiations with overseas buyers, while also adapting their business websites to include Chinese layouts.

As part of a strategic effort to market property internationally, listings and promotional materials have also been translated into Chinese, in recognition of the far greater level of engagement achieved when targeting investors in their native language.

“We know that the internet is the first port of call for interested property investors worldwide, but reaching the Chinese market is more complex than an agent simply making their listings available online, even if they are translated into Chinese language,” Mr Sheargold said.

“The existence of firewalls means many international websites and social media sites are blocked to those within China, so to gain visibility agents are seeking to advertise their listings on locally hosted sites.”

For those agencies who have achieved successful inroads into the market, Mr Sheargold said it was prudent to establish a physical presence in China. This could be initiated by a trip to attend property expositions and meet with potential clients, as well as seek to form strategic alliances with local agents and development companies.

“China is in fact the perfect representation of the advantages of belonging to a network – the ethos on which RERN has been founded,” Mr Sheargold said. “In China, even more so than in the west, we see the success of business hinges on socialising and networking with like-minded individuals.

“The foundations for many deals are made in social contexts and for this reason, local agents find travelling to China to form personal ties with agents and buyers, by attending specialised industry conferences or meeting with local agencies, will lead to an improved ability to understand local customs and respond to the needs and interests of buyers in those markets.”

Mr Sheargold said establishing direct agent representation in China, or even opening a branch in cities such as Beijing or Shanghai, was a logical progression for agencies invested in major sales from the market.

Howeer, he said, independent agents in Australia could also work towards growing their brand in the Chinese marketplace through each personal interaction, alongside repeated exposure, through building a database of quality property listings geared towards the Chinese buyer.

Mr Sheargold said the spread of the Asian market was just another way the real estate industry model had changed, with RERN committed to providing expert support and services to help agencies and their teams reach their full potential in the new marketplace.

www.realestateresultscentral.com.au

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AUSTRALIAN tourism’s most significant hotel refurbishment and extension is underway at Jupiters Hotel and Casino, on the Gold Coast, as Star Entertainment, formerly Echo Entertainment Group, progresses with the property’s $345 million transformation.

Star Entertainment Queensland managing director Geoff Hogg said the revitalisation of Jupiters’ Hotel was the first major upgrade in the history of the property that, when it was built in the mid-1980s, re-defined luxury accommodation and entertainment on the Gold Coast.

“The extensive renovation will see all rooms completely revitalised to offer both business and leisure travellers a world-class experience,” Mr Hogg said.

While the $75 million initial revitalisation of the property’s almost 592 rooms, together with work already completed around the pool and hotel façade, will be completed in 2016, construction has launched on the 17-storey, luxury six-star suite tower at the front of the property.

The 80-suite tower offers what is known as a ‘six-star’ experience and features some of Australia’s most luxurious accommodation environments. 

“The six-star hotel is the signature piece of the transformation of Jupiters which will redefine luxury and take personalised service to a completely new level,” Mr Hogg said. “It is the centrepiece of what will be the most exciting part of the development.”

Mr Hogg said the hotel targets high value travellers and so-called ‘high-rollers’ gambling guests, especially those from Asia.

Suites range from one to four bedrooms and all have private balconies with extraordinary views over Gold Coast beaches and the Hinterland. The top 10 levels feature what are being called ‘super-suites’ with huge balconies that even offer guests indulgent ‘bathtub views’ of the Pacific Ocean.

The strong focus on getting the in-room experience right at Jupiters Hotel is indicative of the amount of focus Star Entertainment Group is placing on developing its Queensland properties.

Mr Hogg said the team worked with six prototype rooms in early 2015 to help shape the details and ensure the end product delivered an experience visitors to the Gold Coast would go home talking about.

“The prototype rooms have given us the ability to work closely with our team and selected guests to get their feedback on design, functionality and the ambiance of each room, and the response we’ve had so far has been fantastic” Mr Hogg said told the Gold Coast Bulletin.

Internationally renowned architects Steelman Partners styled the rooms in a way that aimed to create a sophisticated and modern feel that would complement the Gold Coast’s relaxed beachside lifestyle. This vision has been delivered on the Gold Coast by ML Design, a respected South East Queensland architectural practice.

The rooms feature  state-of-the-art lighting and technology, iPad connectivity and smart televisions, while offering guests the very best in terms of luxury finishes, including marble and stone sourced from Italy and Turkey, rain-head showers and luxurious new bedding.

Mr Hogg said new digital signage has also installed throughout the property, particularly to guide hotel guests who are visiting for a conference or event.

www.jupitersgoldcoast.com

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