The Smartline Report – November Edition

The month in review: Cairns

By Herron Todd White
November 2016

Although there is one large unit project poised to commence in the Cairns CBD, unit development in Cairns is otherwise very slow for either large or small unit development projects. Nevertheless there has been a smattering of small development projects take place over the past twelve months, mainly in the form of duplex or two-unit developments, achieved by either rebuilding on a pre-existing block of land or sometimes in a new estate.

The bottom line is that it is very hard for developers to turn a profit with a new unit development in the current market environment. There are no quick profits to be made, especially if buying a site and developing from scratch, but it may be possible for existing landowners to feasibly carry out a small development with a slim profit margin. Alternatively, with rental market conditions favourable to investors (low rental vacancies, increasing rents) there are opportunities for small rental developments for those prepared to hold for the longer term.

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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