The good news keeps coming in for real estate punters with
word / confirmation that Cairns has officially vacated her 5 year position at
the bottom of the property clock and heading for better times! The latest
Herron Todd White Report is out but with a bit of a mixed bag. Lot’s of
positivity, with a dash of doom here and there to keep us real. Locally,
another major developer has gone down, a few more of our favourite businesses
have not been able to pull through to the good times. Unemployment has risen
(what a nice place to be unemployed though!) On the brighter side, Mortgagee In
Possession sales are beginning to fritter away. The talk continues about the
AQUIS development in Yorkeys Knob becoming a reality. Airport passenger numbers
continue to improve with an increase of 6.1 % in the past 12 months. Building
Approvals are up a massive 51.4% for the year, a huge boost for the economy and
confidence levels of the locals. There seems to be a lot of action in the
streets with restaurants and hotels reporting very positive action. It is
wonderful to see Cairns looking so vibrant and alive again!
While there has been no movement in median prices of
residential property, the number of sales between September 2011 and September
2013 have increased by an impressive 33.7%. The median house price sits at
$354,400, 2.4% lower than February this year. Median unit prices sit at
$185,000, a surprising 8.6% lower than February…we are not quite out of the
woods! With stock being swallowed up by the increased sales volumes, listings
are getting tighter by the day for agents. There are a few exceptions to the
rule with stock variations very much suburb sensitive. We are still adjusting
prices downwards in some areas, the most popular suburbs are definitely
enjoying more demand, putting pressure on prices.
Herron Todd White reports that the median rent has increased
by only $10 per week in the past 12 months. Houses at a median of $355-$365 per
week, Units at $255 to $265 per week. The vacancy rate for houses is holding at
1.7%, Units at 2.2%. At the 2% overall vacancy rate, the rental market seems to
be balancing out to an optimal level for Cairns. Click Here for the full economy report from Herron Todd White.
We are swiftly changing from a buyer’s market to a much more
level playing field between buyers and sellers. Open home numbers are improving
markedly, record numbers of auction bidders, more homes selling under the
hammer. Homes selling quicker if priced right. I would suggest there is much
optimism out there, though the newspapers would lead us to believe that life is
a bed of roses up here. We are clearly off the bottom but it could be a hard
slog to the top if sellers begin getting over excited about the market. Unless
your property is priced right, presented right and marketed right, it could
still sit on the market for quite some time. Don’t believe everything you read
in the news, but it is still worth strapping yourself down for a fun ride of
real estate action in 2014…The Cairns market is showing every sign of taking
off!
