How is 2016 shaping up for the Cairns property market? Well here’s the view from property analysts Herron Todd White:
2015 was a year of continued growth and consolidation in the Cairns market as a result of its steadily improving economy and the market being positioned in the rising market phase of the property cycle throughout the year.
There is good demand for most residential property types and although sales growth has eased, prices continue to rise.
Our expectations for 2016 are essentially for more of the same as the economy continues to slowly improve.
Sales volumes will come back to a slow but steady increase and flow through to price rises being maintained typically at around the 5% mark.
There will be on-going demand for rental property which, given the relatively slow rate of new housing development and tighter lending conditions to investors, will keep the supply of rental property moderately tight and maintain mild upward pressure on rents.
Cairns is typically counter-cyclical to the national market. Whenever the national economy slows and the Australian dollar falls, the Cairns tourism industry becomes more competitive, the local economy improves and the real estate market revitalises. Cairns remains in a positive position at present compared to the downward adjustments taking place in the major capitals.