The Cairns Real Estate Market – Let’s Get Excited!

It seems there are exciting times ahead for the City of Cairns with plenty of good news on the horizon including the announcement of the plans for the $4.2B AQUIS Great Barrier Reef Resort Development in Yorkeys Knob. Here is a link to the overview if you are not familiar with it: http://aquisgreatbarrierreefresort.com/wp-content/uploads/2013/08/Aquis-GBR-Resort_Project-Booklet_MedRes1.pdf. We are all hoping of course, it gets the full go ahead. Cairns has a spring in her step as the excitement begins to build; the Cairns Amateurs Cup this weekend coincides with the government elections and, as real estate sales agents, we are expecting the new surge of growth to begin to show itself as positivity and hope takes the place of 6 years of doom and gloom!

The continuous pick-up in sales volumes is just beginning to have an impact on prices. Though prices record as quite flat across town, they are balanced out by the fact that some suburbs are showing 5% rises, whilst others are still sliding. We remain at the bottom of the property clock.

Buyer demographics are almost exactly the same as 2003 whereby momentum was building as out-of-town buyer’s realised value in Cairns prices and clearly recognised a bottomed out market. Unfortunately, many locals back then sat on their hands complaining they were missing out on all the “good deals”. It is happening again now in 2013. NSW buyers are showing particularly strong interest in our real estate, not afraid to pay reasonable prices and realising that if they do not buy now, they could miss out. Locals often ask us “What is the lowest figure the Seller will take?” Out-of-towners have a different take on things. They are doing their research, often not even viewing the property and stating “…that’s a fair price – I’ll take it”

Sellers would be wise to listen to the current market without getting too excited with the prospect of rising prices however. The valuers’ are still tough, the banks do not intend on taking risks with buyers wanting to invest in what still appears to be a restless Cairns market. New build housing popping up in pockets about Cairns fiercely compete on
price with older homes. There are more and more being built slowing demand on existing housing. Building approvals have gone up by a massive 43.1% between December 12 and June 13. That’s huge! A major concern for agents is the fact that stock is so tight; in fact houses actually listed for sale have reduced by 20.6% between June 11 and June 13. Why complain?! This is one of the major stabilisers of current local prices. An increase in stock could pop this bubble we are all hoping for.

A new government in the starting blocks…what sort of measures will they have to take to get the country back in shape? We are witnessing local mining contractors losing their jobs now. Ergon Energy workers being trained to handle retrenchments, a very nervous Queensland Health sector to name but a few concerning events. On the other hand, across the nation, low interest rates, rising incomes and improved affordability, rents growing quicker than house prices… the creation of a buoyant real estate market at work. Anything could happen after next week but, rest assured, this weekend will definitely be a great excuse to celebrate what we hope will be the start of some serious action in the Cairns real estate market. The latest Cairns Watch report confirms much of our thoughts. Click here to view the August Edition for Herron Todd White: http://www.cairnswatch.com.au/uploads/uploads/201308fullreport.pdf