Cairns

The Smartline Report – December Edition

The month in review: Cairns

By Herron Todd White
December 2015

The Cairns residential market moved from the start of recovery phase into the rising market phase of the property cycle in early 2015 and has maintained that position for the remainder of the year. The market is best described as healthy as demonstrated by good demand for most residential property types. Sales volumes are showing growth but the rate of growth has tapered during the course of this year possibly as a result of resistance to increasing prices as well as tighter lending conditions for investment properties. Areas of the market that are underperforming to some degree include units in lower socio-economic locations and units in tourist accommodation complexes.

Prices levels for houses typically regained previous 2008 peak levels in mid 2014 and prices have continued to rise mildly during 2015.

The Cairns median house price stood at $410,000 in September 2015 which demonstrates a 4.7% increase since September 2014. The median price for units stood at $215,000 in September 2015, up 5.2% from September 2014. However the median unit price remains shy of previous peak levels due to the ongoing effects of buyer aversion from increased strata building insurance costs.

There has been good demand for vacant land in most locations throughout 2015 with prices rising relatively quickly over the past 12 months. Land prices now start at about $130,000 per allotment and extend to about $280,000. The median allotment price stood at $198,000 in September 2015. Land price rises have been strongest over the past twelve months on the northern beaches, but have been less severe in the southern corridor market due to its larger developable land supply and greater competition between developers.

Overall, 2015 has seen a continuation of slow growth and consolidation in the Cairns market as a result of its improving tourism based economy.

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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. © Smartline Home Loans P/L 1999 – 2015. Australian Credit Licence Number 385325

 

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