The Cairns residential land market is progressively rebuilding from five years of lean demand for new residential allotments. Monthly sales volumes are now averaging around 40 per month, more than double the 15 sales per month of early 2011 but still only a fraction of the 100 sales per month we regard as the normal market.
Cairns has a mainstream residential land market that starts at around $130,000 and extends through to around $350,000. The median land price stood in trend terms at $216,000 in January 2015. The median land price has escalated significantly in the past six months, firstly because of raw price increases and secondly because sales activity has grown faster for the medium to upper priced estates, thereby dragging up the average and median. Sales in entry level estates remain relatively slow due to the dearth of first home buyers in the market.
Cairns Land Market Activity
At last count there were 43 different land estates in Cairns with lots under construction or for sale, and a number of others going through the development approval or pre-construction phases. However there has been only a handful of estates that actively met the market during the lean market years. With the revival in the market over the past two years, many (but not yet all) of the previously dormant estates have come back to life.
Most of the land available over the past three to five years has been titled lots, but we are now starting to see lots being introduced once again to the market off the plan, a phenomenon not seen for some time. This comes as new lot development, which has been especially quiet over the past five years, is now starting to ramp up again as market conditions improve.
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