The month in review: Cairns

By Herron Todd White
September, 2009

From its mini-boom in 2007, the Cairns residential property market experienced a distinct reduction in sales activity during the course of 2008, initially due to the high interest rates that prevailed for much of the year, and then the global financial crisis negatively impacting on buyer (or borrower) confidence. Volumes of property sales in the Cairns market during 2008 reduced by about 40% on those recorded at the same time of the previous year, and values decreased by an average of 5% to 10% since the market price peak in early 2008.

As 2009 has progressed there has been some increase in sale numbers, mainly due to first home buyers capitalising on government grants and stamp duty concessions, and values have steadied. However most of the increased demand, reflective of first home buyers, has been for affordable properties up to around $350,000. Littlemovement in prices has been discerned thus far during 2009, with values generally stable.

In the most recent months the first home buyer impetus has faded, but has been counterbalanced by some rekindling of the investor market as well as increased activity from second and subsequent buyers. If sustained, this should extend the sales base, much more into the $350,000 plus price category. Our prognosis for the Cairns market is for continued stability over the short term, with little change in sale numbers and/or prices.

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. © 2008 Smartline Home Loans P/L. ABN 38 085 370 270