The Other Palmie

Sydney Morning Herald

Saturday March 18, 2006

Peter Vincent

It's the Palm Beach of Far North Queensland, just a bit more humid.

Cairns people live at Palm Cove for the same reason Sydney people live at Palm Beach, says Jeff Kahler, development director for the Queensland property developer Thakral.

"It has a tree-lined beautiful beach and it's away from the hustle and bustle of the city. And from an investment point of view, there is limited apartment stock there which makes it a good place to buy," Kahler says.

However, unlike the Sydney suburb, it is Palm Cove's established reputation as a tourist destination - and one increasingly popular with Sydneysiders - that makes it a sure bet. Thakral is about a year off marketing the first stage of a residential resort development called Argentea, which will feature 400 low-rise apartments, ranging in price from $400,000 to about $2 million. It is taking expressions of interest.

Kahler says a major feature will be the site's low-density design; although the developer had planning permission to house 3600 people on the 61-hectare site, its master plan caters to only 2600. A third of the site will be native vegetation.

"We have a lot of confidence in Palm Cove; it's a place a lot of people want to live and there is growing interest from southern investors, Sydney in particular," Kahler says.

"Melbourne used to be our main southern market but in the last 12-18 months we are seeing more interest from Sydney, especially people in the 35 to 45 years age bracket. They want to invest in good quality property very near the beach and they are prepared to pay for it."

He expects about a quarter of all buyers to be Sydneysiders.

A major difference between Palm Beach and Palm Cove is the tropical climate, which causes southerners to either love or hate Far North Queensland. While temperatures don't often climb above the mid-30s, the combination of the heat and humidity in summer is too much for many. According to the Bureau of Meteorology, when Sydney's January mean daily maximum is 25.8 degrees with 71 per cent humidity, Cairns is six degrees hotter with 75 per cent humidity.

Another Queensland developer, Indigo, is also investing heavily in Palm Cove. It has two projects under way which, along with Argentea, represent the transformation of Palm Cove from a tourist market catered to by hotel chains to a sea-change destination.

The first of Indigo's two developments is Ocean's Edge, a $300 million redevelopment of the Novotel site into 400 homes and apartments. Marketing and construction commence next month and the development is due for completion by 2011.

Indigo's other development, the $70 million Drift - which will comprise 129 furnished luxury apartments - is selling off the plan now. Construction began last October and it is due for completion later this year.

To date 70 units have been sold in Drift. The remaining stock includes studios ($330,000), one-bedroom units ($485,000), two-bedroom units ($620,000) and three-bedders selling for an average $2.3 million - these are 160 sq m internally and have 68 sq m of external space.

Michael Kisluk, director of Drift's architect, TVS, says the development has moved away from the Balinese feel that has permeated hotel design in the Far North in recent years.

"We have gone away from a kitschy tropical feel towards more of a chic metropolitan feel, with white surfaces, timber joinery, glass tabletops, lots of stainless steel. In many ways it's exactly what you might find in contemporary apartments in Sydney or Melbourne," he says.

PALM COVE

Population 14,190

Location Far North Queensland, 26km north of Cairns, 1850km north of Brisbane and three hours' flight from Sydney.

Climate In January, the average maximum is 31.4 degrees and in July it is 25.7.

Schools There are a state high school at Smithfield, state primary schools at Trinity Beach and Yorkey's Knob, and an Anglican primary school at Kewarra Beach.

Sports Cairns has a full range of sporting teams and clubs.

Hospitals The nearest medical centre is at Clifton Beach and the closest major hospital is Cairns Base Hospital.

Shopping Palm Cove has a small range of shops, including convenience stores, takeaways, a hairdresser and chemist, and about 20 restaurants. The nearest shopping centre is at Clifton Beach.

To buy

BUCHANS POINT

5/13 COLONEL CUMMINGS DRIVE

$965,000

This luxury three-bedroom two-bathroom apartment is part of a small block of units completed in 2002. Overlooking Palm Cove, the apartment has stunning rainforest views. Contact Cynthia Cole, Ray White Northern Beaches, on 0740382066 or 0409059749.

To rent

PALM COVE

123 WILLIAMS ESPLANADE

$3150pw

Luxury air-conditioned two-bedroom apartment in a resort complex opposite the beach. It has two bathrooms, a veranda overlooking the pool and has TV, DVD, and stereo, plus cooking and laundry facilities. Contact Sandra Burchett, Raine & Horne Palm Cove, on 0740553233 or 0400136061.

CLARION CALL

When Killara couple Ray and Phyllis Knight heard an apartment was for sale in the Clarion Hotel, where they had holidayed over 20 years, they jumped at the chance.

"We have met so many friends there and we know people with houses in that part of town," says Ray . "We have had a bit of a love affair with the place for years."

The hotel is being completely refurbished and remarketed as the resort-style development Drift. The Knights bought a two-bedroom unit off the plan for $620,000.

They won't be renting it out, but instead will holiday there about four times a year and give the keys to relatives in need of a break.

And Ray has a strategy for beating the heat. "If it's just too hot you head for the beach or the pool or stay in the air-conditioning," he says.

© 2006 Sydney Morning Herald

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