CoreLogic National housing Update November 2017
November Market Outlook
Making rentvesting work for you
Should you rent to people with pets?
Buying property with friends
Adelaide November 2017
Brisbane November 2017
Cairns November 2017
Canberra November 2017
Darwin November 2017
Gold Coast November 2017
Melbourne November 2017
Newcastle November 2017
Perth November 2017
Regional NSW November 2017
Regional NT November 2017
Regional QLD November 2017
Regional SA November 2017
Regional VIC November 2017
South West WA November 2017
Sydney November 2017
Tasmania November 2017
Wollongong November 2017
CoreLogic NSW housing Update November 2017
CoreLogic QLD housing Update November 2017
CoreLogic SA housing Update November 2017
CoreLogic VIC housing Update November 2017
CoreLogic WA housing Update November 2017
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Go hard or go home? Not necessarily
Cairns November 2017
The month in review: Cairns
By Herron Todd White
A fully functional rental housing market is fundamental to Cairns, with the 2016 Census figures showing that 39% of its occupied private dwellings are rented, considerably above the Queensland state average of 34% and the national average of 31%. A high degree of reliance on rental accommodation is generally attributed to the transient nature of much of the Cairns population and is certainly not a reflection of housing affordability issues anywhere near the extent of Sydney, Melbourne or Brisbane forcing people to remain renters rather than homeowners.
Rental vacancy trends for houses have remained consistently tight over the past five years as a result of rental demand continuing to exceed the very low levels of new rental housing supply coming on line over the period. In addition right now is the peak rental demand time of year and agents are reporting a distinct shortage of supply and multiple applications for any properties that do come onto the market. The latest trend rental vacancy rates for September 2017 stood at 1.9% for houses, 2.1% for units and 2% for the market overall. Coupled with the low level of new rental supply being created due to reduced levels of investor housing activity, rental market conditions are expected to stay tight for some time.
Our chart depicts the correlation between rental vacancy rates and rental growth in Cairns in recent years. It highlights that rental rents have continued to ratchet up, with 2016-17 median rent levels reaching $395 per week for houses and $285 per week for units. Interestingly though, rent increases over the 2012 to 2013 and 2016 to 2017 period have not been as pronounced as they were in the 2003 to 2004 and 2007 to 2008 period when rental vacancy rates were also very low. This is likely a reflection of the market’s lesser ability to absorb rent increases in recent years because of tenant affordability limitations in the more subdued post-GFC economic conditions.
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.