Exciting times for the recovering real estate market in Cairns as
investor demand picks up and more people take on the opportunity of some
excellent buying opportunities. Prices are slowly improving with buyers now
seeking to secure a bargain before the market gets out of their reach.
Real estate agents are enjoying good volumes of potential buyers through
properties as the market claws its way back. From a selling agents view, we now
have the exact problem we had when the GFC hit hard; only the problem is in
reverse! Buyers are still reflecting on past sales and making assumptions on
value based on this past sales evidence. Sellers are getting excited with the
constant banter from the media beating the drums on the signs of the rising
market. Some sellers expectations of price have moved way ahead of the market…I
guess the prospect of a fantastic price would excite anyone! Our job is now to
pull both the buyers from low expectations and the sellers with high
expectations together; like two stubborn horses with their hoofs stuck firmly
in the ground. Smart buyers are realising their predicament very quickly as
offers are refused, opportunities of great buys are slipping through their
fingers as multiple offers coming rolling in on well-priced properties.
Price will always relate to time in this game. The higher the price, the
slower the sale. With the scales beginning to tip in the direction of sellers thanks
to a lack of listings available to sell, the situation is beginning to even
out. Auctions are becoming more popular as a means to cure the problem. This
month the RE/MAX Cairns office auctioned off 6 Police houses. With 70 bidders
registered, there were 64 upset buyers walking out that night with starting
bids from the crowd starting well above many budgets.
·
Sales volumes are continuing
to acelerate
·
Rent prices are continuing to
climb
·
The population continues to
grow
·
Pressure is increasing on
prices as a lack of listings is beginning to frustrate buyers
·
Interest rates are at an
all-time low
The AQUIS development plan appears to have been the main catalyst in
much of this renewed buyer confidence. Although we received news recently that
there will be a delay on this plan for at least another 18 months, it really
came as no surprise to locals. It certainly shone the light on what is possible
for Cairns and injected a massive wave of enthusiasm and investment interest to
the region. The Christmas tourism season also produced some exceptional, record
breaking numbers with reef charters booking out for days at a time, hotel/motel
occupancy rates at peak levels and many happy cabbies about! We were blessed
with perfect weather too!
The January CairnsWatch report from Herron Todd White revealed Cairns'
residential property sales had increased by a staggering 40.9% between December
2011 and December 2013. The average median rent increased
by $15 per week over the 12 months to December 2013, up from $355 to $370 per
week for houses and $255 to $270 per week for units. Building approvals are now
at a 3 year high.
You can read the last two full HTW
reports here for both January
All in all, things are looking good
for property owners and potential investors to the region as Cairns powers on.
Have a great month!
