IN A BOOMTOWN INDUSTRIAL REVOLUTION

NOVEMBER 2012

SURAT BASIN BUY OR LEASE

A Surat Basin Property Group Publication

LIVING
Property powerhouse looks to the future
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The only Industrial Estate in the thriving town of Chinchilla

Bruce Holmes Surat Basin Real Estate bruce@suratbasinrealestate.com.au 0402 348 695 Andrew Quinert Surat Basin Property Group andrew.quinert@sbpg.com.au 0427 912 171

Gas Pipelines and Railways open doors to the world

Industrial Park powers ahead

Discover the real Chinchilla

THE PINES, MILES

Jason van Hooft

Welcome to our dynamic region

Chief Executive Officer Surat Basin Property Group Jason van Hooft
The Surat Basin is a dynamic place to live, and we hope this publication will give you some insight into just some of the important events and activities within our organisation, and across the region. Surat Basin Property Group (SBPG) is extremely proud of its local history. The company has gone from strength to strength since it was formed and is a Chinchilla success story. Our staff levels have increased to in excess of 65 and we offer a rewarding, exciting and progressive career path for all our employees in a wide variety of different sectors. To cater for the growth in the Surat Basin and the subsequent demand for property, we have recently established an office in the Brisbane CBD. We have three specialised companies working as part of our business - Surat Basin Real Estate, Surat Basin Developments and Surat Basin Homes. Our current residential projects are at various stages of development. The Pines community in Miles offers large, elevated lots with acres of parkland, open space and a billabong. The development is without peer in the local area and will feature the finest homes in Miles. We will have 37 homes under construction by the end of this year in The Pines. Parker Place, the second stage of Sovereign Park is Chinchillas most prestigious estate and consists of just 18 lots. The development has been designed for the executive owner occupier market. Unlike most residential land in Chinchilla that is sold as house and land packages, buyers have the option to design and construct a large, architecturally styled family home. The third stage of our Bottle Tree Estate in Chinchilla is due to commence construction shortly.

Many of these packages have been sold off the plan to investors. We have already designed and constructed nearly 100 homes in previous stages and this estate is a proven winner. In Roma, we are the only local builder to partner with the Urban Land Development Authority with one of our homes in their recently launched display village at Clearview Rise. The Surat Basin Industrial Park Chinchilla, is expected to provide hundreds of employment opportunities and several companies will be operating on site in the coming months with construction on their premises nearing completion. We have several other residential and industrial projects in the Surat Basin at various stages of planning that will provide continuity to the market in the coming years. SBPG is doing more than just developing new property and managing real estate. We believe in putting back into the community and we are actively involved in a range of community initiatives covering everything from sport to business development initiatives for the whole region. The explosion of the resources sector activity in the Surat Basin is only just starting and we are determined to ensure that the flow on economic benefits that this brings will be shared and enjoyed by everyone in the community. We would like to say a big thank you to our suppliers, staff and most of all our valued customers. Please enjoy our publication and take in what the Surat Basin has to offer.

our communities, they are more likely to stay and raise a family, which lays the foundations for future growth. We have already seen the positive effects of population growth recently with the Western Downs population jumping by 2.6 per cent to 32,831 last year. Its anticipated that this figure could spike by as much as 35 per cent over the next 20 years, to reach more than 43,000 people. While all this activity at a macro level plays an important role in the growth of our region, its also important to recognise what is happening at a grassroots level in each of our towns to pave the way for this growth. Council is working hand in hand with public and private companies to ensure that we have the infrastructure and facilities in place to meet demand over the coming years. Projects like the proposed Chinchilla Sporting complex, the recently completed Aquatic Centre & PCYC (Dalby), Dogwood Crossing extensions (Miles), Indoor Sports Centre (Tara) and the Williams Oval amenities (Wandoan) are a great example of how we are harnessing the growth we are experiencing to provide a better lifestyle for all residents. Council also supports a range of family fun days, competitions and themed celebrations across the region. With the festive season nearly upon us, I am eager to see the community come together once again. I look forward to seeing our region continue to go from strength to strength, with the Council, business and community working together to build a positive future for everyone. Should you have any questions or if you require further information, please dont hesitate to contact Council, and one of our friendly staff will be more than happy to assist you. Kind Regards, Mayor Ray Brown

Mayor Ray Brown

Western Downs Looks to the Future

Western Downs Regional Mayor Ray Brown
The future is looking extremely bright for the Western Downs, with significant investment in new resource, commercial and community facilities right across the region. A recent report by the Bureau of Resources and Energy Economics shows that there are 101 infrastructure developments currently in the planning and approval stages with the Queensland Government, which are set to tip literally billions of dollars into the States economy. This has translated to numerous employment opportunities in fact, recent statistics also show that areas like Chinchilla and Miles have some of the lowest unemployment rates in western Queensland. Jobs are vital not only from an economic perspective, but also a community outlook if people can find reliable, well paid work in

Kayakers enjoying Chinchilla Weir

FAST FACTS!

SURAT BASIN GROWTH

The numbers stack up for the Surat Basin being the best place in the world to invest in a new home today
GROWTH

In Queensland, The Surat Basin includes Toowoomba, Maranoa and the Western Downs regions. The Surat Basins population is expected to increase significantly over the coming years. In 2009, the population was 203,790, and projections show this figure could jump to 301,900 by 2031. The regions workforce is expected to almost double over the coming years - increasing from 85,000 in 2009 to about 158,000 in 2031. A growth rate of 3.7 per cent per annum over the next five years will require an additional 3,600 positions per year. The Surat Basins Gross Regional Product (GRP) was $10.6 billion in the 2008 - 2009 financial year - compared to an estimate of $28.4 billion for 2031. Investment in the resource and mining, water and gas, transport and energy (excluding CSG and LNG) industries totals around $21.9 billion, which translates to about 10,000 new direct jobs created as a result. The mining and resources industry will continue to be the biggest contributor to the regions economy - tipping in $6.5 billion by 2031, with oil and gas expected to be the regions fastest growing sector over the next 20 years, with an 11.5% workforce increase. The Surat Basins diverse economy is demonstrated by the fact that, despite the mining and resource sectors growth, the regions largest employers in 2031 will be retail trade (20,241 jobs) construction (15,051 jobs) and manufacturing (14,461 jobs). The largest number of workers required in 2031will be in the following occupations: chefs, truck drivers, nurses, metal fitters and machinists, teachers, trades workers, livestock farmers, factory workers and drillers and miners.
Source: Skills Queensland report, Surat Basin: Workforce Development Plan

18.1%*

*18.1% Housing Price increase in 12 months to June 2012 REIQ Queensland Market Monitor

House prices in Chinchilla have increased by over 370% since 2003. During the same period the value of homes in Miles increased by over 400% and in Roma the increase is 321%. (realestate.com.au)

1800 041 411 www.suratbasinhomes.com.au HOUSE AND LAND PACKAGES CHINCHILLA MILES ROMA

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Image courtesy Chinchilla News

RAILWAYS PIPE LINES & ROADS

To say that the Surat Basin Region is experiencing a turn of economic growth is a gross understatement. In addition to the huge number of resource projects opening up within the Surat Basin, a large number of extensive infrastructure projects are underway to facilitate the delivery and efficient exploitation of the regions resources.

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LNG Pipelines

Using pipelines to deliver CSG for LNG conversion is the key to the Surat Basins international competitiveness as a supplier of LNG to the ever-growing global market. There are several pipeline projects underway, with some already under construction, to deliver the over flowing Coal Seam Gas to the Curtis Island facility off Gladstone. The Queensland Curtis Island LNG Project will build 540km of buried pipeline linking the gas fields to Gladstone. This pipeline is due for completion in 2014. Arrow Energy has 430km of planned pipeline with construction expected to commence in the 2015/2016 financial year. The Australian Pacific LNG pipeline is 530 km of pipeline commencing just 5km away from Miles, trailing north and then east to deliver CSG to the Curtis Island Facility. Welding of the pipe sections has already started just outside Miles. Completion of the APLNG pipeline is expected within eighteen months to two years.

In addition, an 825km pipeline is also planned connecting the Surat Basin gas fields to the Hunter Valley to allow the export of any gas in excess of the Curtis Island facilitys capacity; such is the expected growth in output from the Surat Basin.

you will never see the same scene twice as new buildings rise from the ground at an astounding pace.

The Surat Basin Railway

The Surat Basin railway is 210km of narrow-gauge track that will enhance the existing coal network and help unlock the estimated 6.3 billion tonnes of coal reserves in the Surat Basin. Often referred to as the Southern Missing Link, the Surat Basin Railway will connect the regions resource projects to the future Wiggins Island Coal Export Terminal located in Port Curtis, Gladstone. The railway has the capacity to transport 42 million tonnes of coal per year on trains up to 2.5km in length. At todays prices, that represents nearly $3.5 billion dollars worth of coal every year. The railway will not only further encourage the growth of Australias largest export industry, but the regions local producers as well, allowing freight to travel freely between the Surat Basin and the coast, joining with Western and Moura Rail Systems and connecting the Surat Basin to the national rail network - further enhancing the economic development of this already booming region. Construction of the line has commenced and is expected to reach completion in the 2014-2015 financial year.

These four pipelines will ensure that the Queensland coal seam gas industry is a global player in a world of voracious demand for cleaner-burning hydrocarbons.

Roads
In addition to rail and pipelines connecting the resources of the region to export, the regions local infrastructure such as water, roads and local facilities continue to grow and keep pace with the population growth. The state governments royalties for the Regions program will distribute much of the royalties collected back into the regions that provided them. Businesses are rushing into the region to service the ever-growing number of Chinchilla and Miles locals: such as fast food, banks, electronics and supermarket chains. The Warrego Highway, which runs through Toowoomba to Charleville is undergoing a $96 million upgrade, including its expansion to four lanes. Driving through these towns

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Surat Basin Major Projects

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CITY TO COUNTRY: DISCOVERING THE REAL CHINCHILLA

Im sure most people who live in the city or along the coast and havent visited Chinchilla before have already painted a picture in their minds of what the town is like: quiet, sleepy and dusty might be some of the words that spring to mind. I too didnt know what to expect when I was asked to visit the town after working at Surat Basin Property Groups (SBPG) head office for a month, but I was excited about the opportunity to explore new horizons and learn more about my work. Chinchilla is located about 290 km west of Brisbane along the Warrego Highway. Its an easy three hour drive, punctuated by amazing scenery - picture the sun setting over the bushland, with scattered outpost towns with snack bars and lonely mechanical garages. The first thing I did was take a morning walk around town, which is surprisingly easy to navigate. The town centre had been described as close to where I was staying, but my experience with regional areas was that when locals said town was just ten minutes away, they meant by car, travelling at 120km per hour. The suggestion of walking was usually met with a wry smile and the muttering of cityboy under breath. Not so with Chinchilla I found everything I needed with ease, and the help of many friendly locals, proving that country-town hospitality is not a myth. I spent the morning being greeted by people who not only said Hello but How are you? as well. They asked as if they meant it and they did. While Chinchilla might be considered quiet in comparison to the city minus traffic noise and loud music the town is filled with a pleasant volume of chatter as people meet and greet one another as they go about their day. During the day the towns main street - Heeney Street - is a hive of activity, thanks to the many excellent shops, cafes and services in town. Its easy to see why Chinchilla would be a great place to raise a young family. It has three primary schools, (two private and one state) and a high school, a cinema, toy shop, sporting clubs, and hectares of land to run around, ride bikes and explore the great outdoors which is something I lament that

many city children are missing out on. The town is anything but sleepy locals have become very engaged in making the most of what their town has to offer which is plenty. To dispel the dry and dusty stereotype of inland towns I visited the weir across the Condamine River, which teems with aquatic wildlife and is a popular camping ground. People use the weir for all kinds of water-based recreational activities, like fishing, kayaking and even water-skiing. Once again, I found myself wishing I had more time to fully experience the Chinchillean lifestyle. If outdoors adventure doesnt appeal to you, youll be pleased to know that Chinchilla serves up five star home-cooked meals. The local bakery has the best pepper steak pie I have ever tasted, while the local RSL boasts a cracker chicken parmigiana, among a large list of enticing pub grub. If you consider yourself a masterchef, then the local supermarket is very well stocked with fresh produce and meats. While the days can be busy, the nights in Chinchilla provide a chance to simply relax and get back in touch with nature. When you live and work in a capital city, its easy to forget what a starry night sky looks like, or how to switch off and enjoy the sound of silence. Of course, if you are looking for entertainment, the RSL and the pub are great places to go, with people of all ages mingling and having a great time with good music, food and company. What makes Chinchilla special is not that it is smack bang in the middle of the biggest energy boom in Australias history. It is that Chinchilla, unlike many other energy towns, did not simply come into existence following the discovery of untapped resources. The town has a very long and proud history. It is not a town that is disoriented from its rapid growth. It has grown into the town it is today without losing its original country charm, which is what makes it such a great place to live and work. Michael Oliver Digital and Social Media Coordinator

LOCAL SPORTING TEAMS BRING CHINCHILLA COMMUNITY TOGETHER

Jack Egan - Head of Property Development at Surat Basin Property Group talks about his work, his change in lifestyle and how sports like rugby have become more than just a game for new residents in town.

agreed to sponsor the team, and with their support we have gone from strength to strength. This year we were runners up in the Western Downs regional grand final, which is really a tremendous achievement. The team has grown in skill and numbers over the past couple of years largely due to the resources industry which has brought more people into town, along with additional much needed corporate sponsorship.

How is Chinchilla different to other areas you have lived and worked in?
I think the community spirit is what stands out here, and its a quality thats particularly evident when watching all of our local sporting teams in action. These sporting groups are popular with new residents in town, as its not just about playing games - its about meeting new people and establishing networks of friends and colleagues. This is particularly important for single workers who are in town on contract and who may not have any friends or family nearby. The River Rats Rugby Club has attracted people from all walks of life - from farmers to accountants, ranging in age from 18 to about 43. Regardless of age or background, everyone works together as a team and although we are a small club and dont have much in the way of facilities, we have plenty of passion and determination to win.

What are your goals for the future?

Im keen to keep expanding SBPGs workbook of developments, to help Chinchilla realise its full potential as a major resource and agricultural centre and as a great place for people to live. Im also determined to help expand Chinchillas sporting facilities, so locals dont have to drive for hours to attend games. Im on the steering committee for the proposed new Chinchilla sporting complex for the town to cater for sports like rugby, AFL, netball, touch football and gymnastics. Together with the support of the Western Downs Regional Council, corporations and the local community I am hopeful that we will be able to progress with plans to get this facility up and running in 2013, and I strongly encourage everyone in Chinchilla to support this initiative, as it will really make a big difference to our town.

Why did you move to Chinchilla, and what do you like about living here?
I moved to Chinchilla a couple of years ago from the Sunshine Coast with my wife, Gail, because there were great career opportunities in the area on the back of the mining and resources boom. Moving to Chinchilla has been a big change for us, as we have been used to cities and coastal towns, but we are making the most of the different lifestyle opportunities here. Its great to be part of a smaller, close-knit community, and Im enjoying my involvement in different local groups and teams.

What activities do you enjoy outside of work?

Ive always been a fan of sports and the outdoors coming from the Coast I love surfing and blue water fishing, but living here has helped me rediscover my passion for rugby union and golf. For the past year, I have been the assistant coach of the Chinchilla River Rats Rugby Club, which was reformed two years ago by current president Scott Gale. Surat Basin Homes

CHINCHILLA ROLLS OUT THE WELCOME MAT FOR BUSINESSES AND FAMILIES
When asked to sum up Chinchilla in just three words, local businessman Jim Strongman made no hesitation in declaring the town as innovative, inclusive and imaginative. As president of the Chinchilla Community, Commerce and Industry Jim Strongman (CCCI) and a senior executive at Surat Basin Property Group (SBPG), Mr Strongman has helped forge major business partnerships which have tipped millions into the economy. Mr Strongman attributes the continued success of Chinchilla to the many hands make light work culture of the community and the willingness of locals to actively participate in the CCCI and various steering committees aimed at improving facilities in the area. He said 2013 would be an exciting year for the town, with a number of new projects already in the pipeline. While Chinchilla is performing well in terms of its economy and property market, its still a competitive environment out there in terms of attracting new business and skilled workers - and thats why innovation plays such a vital role in everything we do. Were always looking at new ways of doing things, to improve business relations and provide a better lifestyle for residents. For example, next year we are planning to build an incubator facility, which will basically provide a temporary base for commercial and industrial businesses who want to start operation in Chinchilla immediately, while their own facility is being built. We recently hosted a small trade commission which was the initiative of Brisbane Marketing. It included the Canadian Vice Consul. Mr Strongman said while attracting new business was vital for the town, providing incentives for families to move - and settle - in the area was another key focus of the CCCI and local committees. While we recognise that we will always have some drive-in,

drive-out workers in town, we are really trying to encourage more people to make a permanent move to Chinchilla, to ensure we have the population for sustainable, long-term growth. SBPG plays a key role in this process, by providing quality, affordable housing. There can also be additional financial benefits with government tax concessions in some cases. The great thing about Chinchilla is that even as the town continues to grow - with a robust economy and new infrastructure - it still retains a village atmosphere, where people are friendly and welcoming. We have taken this one step further and are now offering a welcome service to make sure everyone feels included. When new families move to town, we take them on a tour of all the local schools, sporting clubs and facilities, to help them establish professional and personal networks from the outset. We have had a lot of positive feedback about this service and we have seen an increase in the number of people relocating here. Mr Strongman said it was also pleasing to see so many locals pitching in to help shape the future of their community. We have recently formed a steering committee to help deliver a new sporting complex in Chinchilla that will provide more opportunities for people to make active and healthy lifestyle choices. We have a dedicated group of people - including a number of my colleagues - who have taken the time to strategically plan for a better future for the next generation and we look forward to implementing that plan to bring it to fruition. Theres certainly plenty of activity and opportunity here for people in terms of business, education and lifestyle.

ITS ALL SMILES IN MILES

Miles is a town of over 1200 residents situated 340 kms west of Brisbane and 212 kms west of Toowoomba. Miles was originally called Dogwood Crossing following its exploration by the Prussian pioneer Ludwig Leichardt, but was later changed to Miles in 1878 in honour of long-serving local property owner and Member of Parliament Sir William Miles. Situated on both the Warrego and Leichhardt Highways, the town is growing into a significant local hub because of its access to both road and rail transport. A major gas line is being constructed north of the town to assist in the transportation of gas from the Surat Basin to the Curtis Island Liquid Natural Gas facility in Gladstone. The economy of Miles is based mainly on agriculture and cropping, producing wheat, sorghum, barley and cotton, although the surrounding mining and energy industries are continuing to grow at an astonishing pace. Each year in early September Miles holds the Back to the Bush Festival to celebrate its abundant displays of wildflowers. Nature lovers are treated to an incredible display of wildlife, amazing gorges only a few metres wide and tracts of wild flowers which bloom after spring rains. Miles has local shops, a library, gallery and infotech centre, a racecourse, a showground, golf, swimming and bowls venues, a hospital, State primary (1880) and high (1979) schools and livestock saleyards and grain elevators. Miles also has a considerable arts culture, focussed on the Dogwood Crossing arts centre. Inside, Dogwood Crossing offers an Regional Art Gallery, Library, IT Centre, Social History displays and The Murilla Room, ideal for many sorts of functions and conferences.

CHINCHILLA ATTRACTS INTERNATIONAL TALENT FOR WORKFORCE

A perfect example of new international arrivals are Tapsi Lakhupota and Roshan Amesur, who originally lived in Mumbai - India, but have held jobs in various major cities around the world including Kuala Lumpur - Malaysia, Muscat - Oman, Singapore, Houston and most recently Boston - United States. Mrs Lakhupota has recently taken a job as an IT Consultant with SBPG, following her husbands transfer to Chinchilla to work as a Well Construction Engineer. She said although there was a huge contrast between city and country living, the couple were now settling in to their new home and lifestyle.

SURAT BASIN REAL ESTATE A STAR PERFORMER

Chinchilla has continued to rally as one of regional Queenslands best performing property markets, with low vacancy rates and solid growth in values attracting purchasers from across the country and overseas. With more than 30 years in the industry, Surat Basin Real Estate (SBRE) head of property management - Pam Moloney - says there are few regions that have kept pace with Chinchillas growth, which has been bolstered by an increasingly diverse local economy. Mrs Moloney moved to Chinchilla about three years ago, after working extensively with Ray White and the Real Estate Institute of Queensland (REIQ) as a training coordinator, receiving coveted industry awards and accolades for her work. Since starting with SBRE, Mrs Moloney has increased staff numbers in her department from two to ten, with further expansion expected before the end of the year - a milestone which she says is just one of many indicators of the towns rapid growth. Mrs Moloney says Chinchilla still has a lot of untapped potential and she expects the upward trends in terms of population, employment opportunities and demand for housing to continue. Its rare to find an area that achieves consistent positive growth for a number of years, but that is exactly what we have been seeing here in Chinchilla, Miles and their surrounding areas, she said. Average rents for a four bedroom home in Chinchilla have lifted from about $370 per week in 2010 to around $550 per week today, while rents in Miles have jumped from $500 per week last year to about $850 weekly today. This strong rental growth has been mirrored by property values, which have increased by 70 per cent in Chinchilla and 78 per cent in Miles over the past five years alone. Vacancy rates in both areas are currently below one per cent - we have literally had no new properties to tenant over the past few months, so builders are working quickly to complete construction on new homes to meet this underlying demand. All of the market indicators are pointing in the right direction and Im excited about watching the town evolve over the coming years. Mrs Moloney said The Surat Basin was becoming increasingly well known to investors, with a large number of buyers coming from interstate and even overseas. Up until now, the Surat Basin has been a well kept secret, but now more people are hearing about the activity in the region and are taking advantage of the opportunities available - particularly with property. About half of SBREs purchasers are locals, while the other half are investors from areas like Brisbane, Sydney and Perth. Investors love the fact that we are there to help them make informed decisions about the property they are purchasing or building and then my team is on call to tenant and manage the home once it is completed. Its the service that really sets us apart - we do regular inspections and send photographs of the property to the owner on a frequent basis, so they have complete peace of mind that their investment is in good hands.

Well make your next move a positive one

The biggest satisfaction we get is when our clients say how much they appreciate we go that extra mile. To us it says weve achieved what we set out to do. Everyday, all day, delivering excellent service standards is what drives us. Its a culture that motivates us to treat our clients property as if it was our own.

Pam Moloney Principal/Licensee

Bruce Holmes Commercial Mgr

Warren Barker Sales Manager

Sue Wilson Property Manager

Vivki Kern Sales Consultant

Deb Luther Property Manager

Anna Reid Property Manager

Residential Sales, Rentals & Property Management Industrial & Commercial Sales and Leasing

SBREs Warren Barker with Merv Barnsley and the new owners of his Oak St Chinchilla home, the Jacobs Family

SBRE Auctioneer Bruce Holmes congratulates Allan & Joy Gath on the sale of their Riders Rd home

www.suratbasinrealestate.com.au

4669 1790

Total peace of mind

DID YOU KNOW?

90% of the gas used in Queensland comes from the Surat Basin
Image supplied by Western Downs Regional Council

SURAT BASIN HOMES UNVEILS NEW HOME IN ROMA DISPLAY VILLAGE

Surat Basin Property Group (SBPG) has teamed up with the State Government through the Urban Land Development Authority (ULDA) to deliver well priced homes in the new Clearview Estate in Roma, which was officially launched in mid October. Surat Basin Homes was selected as a builder partner to deliver an innovative range of homes. The launch event included the unveiling of a new display village to showcase some of the designs on offer, with the development already proving to be a great success, with stage one fast nearing sellout, prompting the early release of the next stage. Homesites in the new residential precinct will range up to 720m2, with land prices starting from just $94,000. SBPG Chief Executive Officer Jason van Hooft said Clearview Rise would appeal to those looking for a well priced property in Roma. He said the fact that Surat Basin Homes was the only local builder selected to work on the project was also a major coup. Clearview Rise is exactly the kind of development that Roma needs to alleviate some of the housing affordability issues it is currently facing, he said. Surat Basin Homes was thrilled to be selected as the only local builder working on the project, which is a great vote of confidence in our knowledge and capabilities as a group. Although these homes are being branded as affordable product, there will be no compromise on quality. We will be utilising efficient and intelligent design to reduce the cost of the homes, whilst still ensuring they are comfortable, private and offer a great lifestyle for residents. We have been working with the developer to deliver even more affordable product within Clearview Rise. Mr van Hooft said Clearview Rise was on track to become Romas newest and most-sought after masterplanned community.

CHINCHILLA MELON FEST A REAL TREAT

A little known fact about Chinchilla is that it supplies about a quarter of Australias melon produce, and is fittingly home to a bi-annual Melon Festival, which is great fun for the whole family! The next Melon Festival is set to be held on 14-17 February 2013, and is expected to draw a record crowd as the event just gets bigger and better each time. Headline events have included melon skiing, the melon iron man test, melon bungees, melon bullseye, pip spitting and melon tossing. Theres also the revered melon splitting contest - with the new Guinness World Record title held by John Allwood who managed to split 47 melons in 60 seconds using only his head (the previous 2007 record was 40 melons). The streets of Chinchilla become a hive of activity with entertainment for all ages, including markets, a street parade, arts and crafts, a poets breakfast, luncheons, free concerts, and lots more. Next year there will be a number of special events included in the program, such as Melon Idol - which encourages the discovery of local talent in all areas, whether it be singing, dancing, comedy, acting, or virtually any form of entertainment. First prize will be $1,000, with auditions to be held from late January 2013. A Bucking Beach Party will be held on February 15, 2013 - with more than 40 tonnes of sand used to transform Railway Street into a tropical oasis. The country will meet the coast with a mechanical bull riding competition for those who like a challenge. Surat Basin Property Group (SBPG) will be a proud sponsor of next years event, and we encourage you to show your support by coming along with your family and friends to join in the fun.

18% cent of all electricity generated inside Queensland comes from gas sourced in The Surat Basin One in four melons in Australia is grown in The Surat Basin Region The Surat Basin covers an area of 270,000 km2. Thats slightly bigger than the entire landmass of New Zealand. Coal Seam Gas (CSG) is not a new phenomenon and has been extracted from The Surat Basin since the early 1960s. The new Australia Pacific LNG Pipe will stretch from 5km south of Miles, 530km to the Curtis Island LNG facility just off Gladstone. A single train delivering coal on the soon-to-be-finished Surat Basin Railway will be up to 2.5km and carry $3.5 billion worth of coal to export every year. Chinchilla is home to a Woolworths and Target with McDonalds under construction and KFC, Subway and Gloria Jeans coming soon.

Major LNG projects to ramp up

There has been broadening angst about the prospects for Australias mining & energy sectors. Rumblings began several months ago, as prices for bulk commodities (iron ore and coal) began to decline. It was evident that the national terms of trade (ratio of average export prices to import prices) was weakening rapidly. Most recently, there has been confirmation by BHP of stopping work on its Olympic Dam project, and postponement of the Port Hedland outer harbour project both major projects, with a combined value in the order of more than $30 billion. How can these recent events be interpreted? What are the next stages within the sector, and what are the broader implications for economic conditions and property markets? A starting point is to state that the mining boom comprises numerous sectors, with the common feature of having huge projects in the development pipeline. These projects have had to compete to progress through the engineering, procurement and construction management (EPCM) process, and this has generated rapid growth in consultancy costs. An initial set of LNG projects sit towards the top of this list, and their works will extend out beyond the next five years. For example, in Western Australia, it is estimated that twothirds of the planned construction work is for LNG projects. However, the major domestic activity associated with these flagship LNG projects is yet to ramp up, as the initial phase of huge steelwork fabrication constructs are being done offshore. Our long list of major projects will continue to be amended with additions, subtractions and question marks. To better inform the accounting process, we need to obtain a perspective on the actual work being undertaken, in terms of trends across commodity sectors and taking a view on broader effects on other sectors, including property markets. The following chart shows the growth in engineering construction work done. Excluding Queensland and Western Australia, engineering construction work done has shown weak growth across the rest of Australia. For the rest of Australia, the cumulative growth in work done was $10 billion (in constant price terms) over the decade to March 2012. However, the rise in work done for Queensland & Western

Australia combined was recorded as $21 billion for the year to March 2012. The chart clearly shows that recorded work done for the two major mining states has increased exponentially. The data shows a surge of 47% in work done for Queensland & Western Australia combined (rising from $46 billion over the year to March 2011, to reach $67 billion over the year to March 2012). This data has been taken at face value, warranting the boom labels for the sector and its flow through into economic growth. The problem is that the work done data cannot be an accurate reflection of activity. Is it sensible for these sectors to jump by almost 50%, given low unemployment rates in Queensland and Western Australia at the start of 2011. How could it be possible for engineering construction work done to increase so sharply? Our view is that the ABS construction work done data, which feeds into national economic growth, has overstated the initial magnitude mining boom during a period when project announcements made that strong positive effect on GDP seem accurate. Yet the jobs data didnt indicate that the actual cycle had taken off, or flowed through into residential property markets in Brisbane or Perth. The irony is that from here, the work done data is likely to suggest a weakening of activity - that the boom is over - which would fit neatly with the reportage of project delays and cancellations. But the short-term jobs data is likely to show rising employment from this sector, higher population growth, and improving first home buyer demand in the relevant cities and towns. The recent experience does reflect the medium-term challenge for mining projects, which is coming more from the cost of construction rather than a plunge in demand. This position is particularly important for LNG/CSG projects, which are drawing on structural change in energy markets, rather than the strength of global economic growth. Jason Anderson Chief Economist MacroPlan Dimasi

POWERS AHEAD
2kms from the thriving community of Chinchilla

SURAT BASIN INDUSTRIAL PARK

Construction has commenced on the first tranche of buildings at Surat Basin Industrial Park, following a recent spate of sales which will result in a sooner than expected release of stage 2. Surat Basin Industrial Park is the regions premier industrial and commercial precinct, situated on a 55 hectare site just 200 metres from the Warrego Highway and close to the Chinchilla town centre. The project is being developed by Surat Basin Developments (SBD), part of the Surat Basin Property Group (SBPG). Two large industrial sheds are currently underway, with work expected to be completed by the end of the year and the first tenants scheduled to move on site in early 2013. SBD Director Warren Daniells said the industrial park was a vital asset for the town, as Chinchilla continued to attract the attention of local, national and international businesses in the resources sector. For example, one of the worlds leading oilfield services companies Schlumberger Ltd will be one of the first to move in. Chinchilla has well and truly been placed on the map in terms of its value as a strategic hub for resource and mining companies. This new wave of construction is indicative of the fact that businesses are keen to move quickly, with a view to getting on site and operational in a short time frame to maximise their trade opportunities. The key to Surat Basin Industrial Parks success to date is that we have been able to cater to all types of businesses - whether

they are looking for small or large lots, with a diverse range of product available ranging from 500sqm - 3,000sqm. We are currently working to expand our offering, with a development approval lodged for seven industrial units to be sold off the plan and the anticipated release of more land - to be made available to suit clients who want to develop their own buildings on site. Mr Daniells said some tenants were already snapping up multiple lots in anticipation of future growth. Surat Basin Industrial Park is the largest development of its kind in Chinchilla and our buyers and tenants have recognised that it is rare to find industrial land of this calibre so close to town, with all amenities and services in place. We have already had Osmac International secure two lots in the development - with construction completed on one lot and the other site ready for future growth. Another international gas field services company has just started work on their premises, with plans to offer the property for sale, with this blue chip tenant in place - which is bound to attract investors. Limited opportunities remain available in Surat Basin Industrial Park. For more information, please contact Andrew Quinert at Surat Basin Property Group 0427 912 171 or Bruce Holmes at Surat Basin Real Estate 0402 348 695.