The month in review: Cairns

By Herron Todd White
June, 2010

The Cairns residential property market is experiencing slow demand at present, as the economy experiences a slow recovery from the economic downturn. Agents are reporting a distinct shortage of potential buyers for houses in market segments under $350,000 and for sub- $250,000 units, due to the absence of first home buyers. Investor activity in the Cairns market is also slow, as the perceived potential for (quick) capital gains in the Cairns market has evaporated. Higher priced properties on the market, which largely appeal to local buyers, are said to be attracting plenty of interest and getting plenty of lookers, but at present there are few takers.

The slowness of the market complicates analysis of buyer profiles. The proportion of property sales taken up by buyers from out-of-town has changed from 2008 when 13% of houses and 73% of new units were sold to out-oftown buyers. Thus far during 2010, around 18% of house sales, and about 60% of new apartment sales, have been to out-of-town buyers.

Tourist apartments, which are primarily investor stock, are also proving difficult to move in the current market environment. A number of tourist apartments in the Cairns CBD have been taken off the market or are being only passively marketed, whilst for others prices have
been reduced by up to 30% in order to attract buyers.

Please note that information in this publication is subject to change without notice. Smartline assumes no responsibility for any errors, omissions or mistakes in this document. © 2009 Smartline Home Loans P/L. ABN 38 085 370 270