Sharp pitch and strong yields: Agents to tap into holiday property demand

Recently, Raine & Horne Port Douglas/Mossman reported that investors had continued to flock to the area, with sales increasing 32 per cent year-on-year in August, after holding firm in July.

Principal and co-owner David Cotton said demand had remained strong despite buyers being more price sensitive amid the tax changes and higher interest rates.

“We’re still selling properties, although house sales have slowed down a little,” he told REB.

He said agents could make the most of the demand by sharpening their strategies around holiday apartments.

This includes knowing property income data, connecting with interstate investors through technology and highlighting the area’s lifestyle features.

To sell high-yield holiday apartments, Cotton said it was important for agents to get all their facts right on the investor’s potential income.

He said that documented income statements for the past 12, 24, 36 months were essential, as well as other factors that might affect cash flow.

“You need to know what the income is, what the expenses are - the general AGM minutes generally will tell you if there’s any upcoming expenses or planned expenses for the building,” he told REB.

“There might be special levies that cost a few extra dollars on top of the body corporate fees …. But as long as everyone knows everything’s very transparent, the investor can make an informed decision when they’re purchasing a property.”

He said it was important to advertise the properties on as many platforms as possible to reach the target audience, with most Port Douglas investors being from interstate.

“You get it out on your portals, your franchise websites, your social media. We use Amplify, but there are social media companies out there.

When conducting open homes, Cotton said agents can face extra difficulties with holiday apartments as they were occupied for much of the year, particularly during peak season.

To avoid disturbing holidaymakers, he said his team tended to create practical walkthrough videos when the properties were vacant, then send them to buyers.

“It’s there just to walk around, open cupboard doors, show people what they would look at if they were there in person; it’s unlike property videos that are there for presentation, showing the pretty things of it,” he said.

“If they’re buying sight unseen, obviously you can do a FaceTime video call with them so they can ask you to turn right, turn left, look up and down.”

Cotton also said agents should highlight the area and local amenities, given that lifestyle and tourism were the key selling factors in the region.

“It’s got the Barrier Reef, it’s got the Daintree rainforest, it’s got the Atherton Tablelands. We’re also spoiled rotten in Port Douglas for restaurants, coffee shops, retail,” he said.

Additionally, Cotton said Port Douglas enabled an escape from the city, being a relaxed country seaside town, with pleasant weather for most of the year.

“The weather in the top of Queensland is basically absolutely perfect from April all the way through to November, whereas down south generally is colder,” he said.