It’s Official - Cairns Is Almost Ready for Take Off!

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!