This is definitely the most exciting time in our real estate market in Cairns since 2007, with the momentum clearly showing some great improvement in sales volumes as Cairns continues to build on its economic recovery. As you know, we are heavily dependent on tourism, and having had no favours from the Aussie dollar being so high, the accommodation occupancy trend has moved up to a sound 69.8% with airport passengers up by a record 6.3% over the past 12 months as we begin heading into our peak tourist season. A combination of those Chinese flights into Cairns and targeted delegations from Cairns business leaders to form new markets and ties with, particularly the Chinese and Papua New Guinean markets, has been a real shot in the arm for business activity and the stabilisation of employment in the Far North. We are still seeing plenty of new families making their move to Cairns and flowing through Open Homes, clearly excited to be here!
As most of you will be aware, sales volumes have been
steadily increasing though prices still remain flat-lined. For example, the
February 2013 median house price sat at $352,400, just 0.8% higher than
February 2012. Unit sales fared no better with a median price of $190,400 in
February 2013, 2.1% lower than in February 2012. The rental market remains
tight with the vacancy rate for houses sitting at 2% and units at 2.8%. Many
Landlords are trying to increase rents to prices never ever achieved in our
market. Tenants are avoiding overpriced stock so be conscious of this when
pushing the envelope with Property Managers advice. The median rent for houses
have indeed increased by $20 per week in the past 12 months, up from $345 per week
to $365. Units have come from $245 to $265 per week. Whilst our rents are a lot
cheaper than down south of Queensland, our lower wages also need to be taken
into consideration.
The great news is that Cairns is expected to finally break
from the bottom of the Property Cycle in the coming months. For buyers, it is
glaringly obvious that moves should be made to secure property now rather than
waiting for an upward trend. Some select properties are now only on the market
for a few days. If it is well positioned, well priced, and most importantly,
advertised well, stock will start moving quickly. Agents are still working on
past sales prices. When the market starts moving, you will most certainly see
prices beginning to move up to slow this trend down. It has happened to every
property cycle since the beginning of time. How many of us will reflect in the
future with a sigh… “ Should have bought that property in 2013!”
For the full Herron Todd White Cairns Watch Report
for April, click here: http://www.cairnswatch.com.au/uploads/uploads/201304fullreport.pdf
