Rainbow Realty Deal April 2012

“I am extraordinarily patient, provided I get my own way in the end.”Margaret Thatcher

The ‘expressions of interest’ to purchase the remaining 17 Developers stock Plantation Resort apartments closed on 7 March 2012. The latest advice from the selling agents, Knight Frank of Brisbane, is that they are negotiating with a prospective buyer to purchase all 17 apartments as well as the Hotel and commercial precinct (excluding the shops that have been sold already. Ie. The Post Office, 13th Beach and Crème de la Crème).

In other local property news, the Commonwealth bank is taking possession of 98 Cooloola Drive (across the road from the Waterview Bistro). This same property was purchased by the current owners at a ‘mortgagee in possession’ auction less than two years ago. The last sale price was $965,000, having previously sold for $1.15 million in April 2008.

Given that less than 10 Rainbow Beach residential properties have changed hands so far this Financial Year, it remains to be seen whether or not any mortgagee in possession type marketing will result in a more positive results.

In other news, you may have seen the article in the Gympie Times on 23rd March about the rise in backpacker numbers in Rainbow Beach. Very funny title actually : “Has-been Bay Versus Rainbow Boom”. The article pointed out the demise of Hervey Bay’s backpacker industry and how many operators are now basing their Fraser Coast tours and accommodation packages out of Rainbow. “And the Gympie Region's Rainbow Beach - with its surf, coloured sands and beaches that go on forever - has suddenly emerged for youthful travelers as the fashionable new gateway to Fraser Island.” (Source: Gympie Times, 23 Mar 12)

Hervey Bay's once thriving backpacker industry has been suffering over the past couple of years with many operators pulling out of the area and fewer barges and ferries travelling across to Fraser Island compared to how many used to operate. This was made worse by a Fraser Coast Council decision to move the ferry departure point from Hervey Bay itself to River Heads (approximately 20 kilometres out of town). Major player, ‘Nomads Fraser Island Tours’ recently announced that all of its operations will now come out of Rainbow Beach, with pre and post tour accommodation supplied by local backpackers resorts. Alongside ‘Oz Tours’, ‘Peter Pans’, ‘Fraser Explorer’, local operators such as Dingos’ also offer backpackers tours and overnight/camping trips to Fraser Island.

Essentially, it makes a lot more sense for Fraser Island tours/backpacker operations to be based out of Rainbow Beach. The barge trip is less than 10 minutes and many of the major natural attractions are on the eastern side of the island (eg. Eli Creek, Maheno Shipwreck, Indian Head, Champagne Pools, etc). Almost every major player in the backpacking market is now operating out of Rainbow Beach because of its easy access to Fraser Island.
From a general tourism/visitor point of view, it is also a lot less expensive to travel to Fraser Island from Rainbow Beach. Barge tickets from Rainbow to Fraser are $100 return whilst a ferry ticket from River Heads (just south of Hervey Bay) to Kingfisher Bay on Fraser Island can cost up to $180 one way.

The head of Tourism Fraser Coast, Chief executive Damien Massingham has said that whilst the departure of ‘Nomads Fraser Island Tours’ from Hervey Bay was a loss for local tourism, it shouldn't create a panic that other operators will follow suit. Mr Massingham called on the Bay's remaining tour operators to step up and capitalise on the departure of Nomads. But Mark Juppenlatz of ‘Next Backpackers’ in Torquay said it wasn't that simple. He said the major conglomerates down at Rainbow Beach are dominating the backpacker market and Fraser Coast operators simply can't compete. "All the major players in the self-drive tours are now based in Rainbow Beach, which holds a good majority of the (driving) permits. "You've only got three competitors with permits left in the Bay - one semi major player and two very minor players." (Source: Fraser Chronicle 23 Mar 12).

The emergence of Rainbow Beach as a key destination on the backpacker route will benefit the town immensely. Our local tourism industry will grow, which provides jobs and additional money into the local economy. This will obviously have a flow on effect of more people wanting to live and work here, so that they can enjoy the beach side lifestyle that so many people aspire to.

There definitely seems to be a general shift towards Rainbow Beach and although domestic tourism numbers are down across Queensland, many Rainbow Beach operators are reporting steady figures and in some cases, increased figures over the past couple of years. The town has certainly been “discovered” by a new generation of visitors and many families are embracing the fact that we don’t have big shopping malls and movie theatres BUT we do have a great surf beach, beautiful weather, good fishing and plenty of natural attractions (Sand Blow, Carlo Point, Seary’s Creek, etc) to keep people busy and active.

With the recent additions of a new Community Hall/Library as well as the fantastic Aquatic Centre (love it! J) you could almost say that Rainbow Beach is ‘coming of age’ and becoming recognised as a destination in its own right (rather than just a stop off on the way to Fraser Island or a place to pick up milk and bread before you camp at Inskip for a week).

Having recently travelled from Rainbow Beach to Kinka Beach (near Rockhampton) and then onto Airlie Beach and back by road – and checking out all the real estate on offer in between….. we can honestly (and without bias J) say that Rainbow Beach is hard to beat. The growth of the tourism industry here will have a positive impact on property prices as demand will increase through population growth and solid job opportunities.