CoreLogic National housing Update August 2017
August Market Outlook
Where is renting most common? by CoreLogic
RBA takes a more positive stance
New depreciation rules affect property investors
Adelaide August 2017
Brisbane August 2017
Cairns August 2017
Canberra August 2017
Darwin August 2017
Gold Coast August 2017
Melbourne August 2017
Newcastle August 2017
Perth August 2017
Regional NSW August 2017
Regional NT August 2017
Regional QLD August 2017
Regional SA August 2017
Regional VIC August 2017
South West WA August 2017
Sydney August 2017
Tasmania August 2017
Wollongong August 2017
CoreLogic NSW housing Update August 2017
CoreLogic QLD housing Update August 2017
CoreLogic SA housing Update August 2017
CoreLogic VIC housing Update August 2017
CoreLogic WA housing Update August 2017
How a mortgage broker can help with your move
Government schemes to help you buy your first home
How do construction loans work?
Cairns August 2017
The month in review: Cairns
By Herron Todd White
Investors, especially outside investors, have been progressively shrinking as a force in the Cairns market in recent years.
Our analysis shows that overall, outsiders buying into the Cairns market have reduced from nigh on 50% of the market in 2003 to around 22% of the market today. The switchover is especially noticeable for units, where outside buyers have reduced in activity from near 70% in the heyday of the market in 2003 to approximately 34% of a much smaller market in 2017.
Over the same twelve-year period, investor yields have improved. For instance a new 4-bedroom, 2-bathroom house on the northern beaches of Cairns that can be currently bought for around $420,000 would typically rent for $440 per week. Yields for units are even higher, though it must be said that the increased yield is in many cases is frittered away by higher ownership costs, particularly through escalated building insurance charges.
Part of the explanation for the investor slowdown over the period has been the absence of new housing construction, especially of units. Even though building conditions have improved significantly in Cairns over the past three years, building levels are still patchy and only a fraction of normal.
By rights Cairns should be an investment hot spot given its relative affordability especially compared to investment in capital cities, and its good prospects as the economy continues to improve on the back of increased tourism. Its rental market fundamentals also remain strong, with a very low vacancy rate, strong yields and low levels of new rental housing construction.
DISCLAIMER: The information contained in this article is correct at the time of publishing and is subject to change. It is intended to be of a general nature only. It has been prepared without taking into account any person’s objectives, financial situation or needs. Before acting on this information, Smartline recommends that you consider whether it is appropriate for your circumstances. Smartline recommends that you seek independent legal, financial, and taxation advice before acting on any information in this article.