Cairns February 2017

The Smartline Report – February Edition

The month in review: Cairns

By Herron Todd White
February 2017

2016 was a fairly lacklustre year for the Cairns property market, characterised by steadily declining volumes of sales and minimal growth in prices. Even though solid fundamentals are in place with low rental vacancy rates, no obvious oversupply in any market sector and continued improvement in tourism, the Cairns property market remains hampered by a continued lack of confidence and optimism.

Plans have recently been announced by Syrian billionaire Ghassan Aboud to invest $200 million to redevelop the Rydges Tradewinds Hotel on the Cairns waterfront and to build a new 200-room hotel at the corner of Lake and Aplin Streets in the CBD. In addition, sales in the $550 million Nova City development by World Class Land, a subsidiary of Singaporean listed company Aspial, have now been launched. These developments may be the catalyst the Cairns economy and Cairns property market needs to overcome the announcement fatigue created by the numerous other projects that have not managed to get out of the ground over the past few years. If successful they will inject much needed confidence into the city.

The performance of the Cairns economy and Cairns property market in 2017 will be dependent to a large degree on the above projects commencing. If no large projects get off the ground we envisage little change and 2017 may well be a carbon copy of 2016 with slow but consistent sale rates, tight rental vacancies and a constrained finance environment.

www.smartline.com.au

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 – 2016. Australian Credit Licence Number 385325

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