Last week I had the privilege of being invited to a presentation by Dr Andrew Wilson, the Fairfax Senior Economist, outlining the Australian Housing Markets Report with a special highlight on the Cairns Market…the main headline being, ‘Cairns To Just Keep On Rising’. Music to our ears!
Most real estate agents remain cautiously optimistic about
these so called ‘rises’ that the experts are predicting for Cairns, but Dr
Wilson presented a very balanced and sensible report, backed up with plenty of
credible evidence, many of which was enforced by our experiences in the real
estate marketplace. And to be frank, based on this guy’s previous
presentations, I feel quite confident we are on the right track.
Cairns remains a ‘premium lifestyle destination’, particularly
for “Fly-In-Fly-Out” residents , regional sea changers and retirees whereas the likes of Townsville remains largely an
‘economic’ town . Our market is still
very affordable by comparison to other cities. There are still very few houses
being built, but this is obviously on the increase. Hardly any units are being
built. This all puts pressure on price…a typical supply and demand trend.
Optimism is finally outweighing pessimism
In summary, the Cairns property market is clearly moving
from recovery to recovered. The estimate is a return to pre GFC levels by June
2013.
·
Cairns has had 2.7% growth in the 1st
quarter of 2014
·
Over a 5 year period, it has risen by 7%
·
The average house price is now $380,000
·
The average unit price is $220,000
·
Expected prices to keep rising
·
Cairns jobless numbers are falling, though
employment remains flat, but stable
·
Growth in China remains strong impacting on
local tourism and investment
·
Interest rates are set to remain low
·
The $4.2B AQUIS development is obviously a key
driver in moving forward
The latest local Herron Todd White Report,’ Cairns Watch’,
reflects much the same by comparison. They state that the official population
of Cairns stood at 153,566 in June 2013. They also estimate that the local
Cairns population will grow by about 2.4% in the 12 months to June 2014,
followed by a 2.3% growth in 12 months to June 2015. Here is the latest ‘Cairns Watch’ Report.
Through the eyes of a Cairns real estate agent, sales remain
steady though buyers are clearly still hoping to secure properties at
yesteryears prices. Many sellers want to sell at next year’s prices. Our job is
to negotiate to bring these two time zones together…often not an easy task.
Throw the valuers into the equation and it becomes even more challenging.
Cyclone Ita, Easter, Anzac, Mothers Day, school back and the big Federal Budget
have all played havoc on the momentum of the market in the past month. Who said
real estate was easy?
The news is more positive than ever for our
beautiful town. As property owners, you should all be thrilled with these two
reports!
Regards, Debbie
