Cairns Property 2009
Monday, January 5 2009
The Cairns housing market is expected to see prices remain steady fuelled by strong population growth and a stable economy.
Cairns is located on Queensland’s far north coast and has long been regarded as the 'gateway' to the world heritage listed Great Barrier Reef and the Daintree Rainforest.
The rate of growth has slowed over the past year after a number of years of consistently good annual increases in value. Rents have kept pace with price growth which is keeping yields at more than acceptable levels, particularly for median density dwellings.
The current population growth rate is 3.2% and even the most conservative long term estimates hold it at 2.5%.
35% of all properties are occupied by renters which is significantly higher than the Australian average. This strong demand for rental properties coupled with the high growth rate indicates that there will be ongoing demand for rental properties within Cairns meaning that investors would be wise to enter the market while prices are still affordable to see maximum yields in the future.
We continue to view Cairns positively from an investment standpoint because of the strong population growth, strong economic activity and the pending dwelling shortage, because many developers have put scheduled developments on hold until the market demand returns.
View short analysis of a typical Cairns property: 2 bedrooms, ensuite, a/c apartment, single lock up garage, $345,500 with 2 year rental guarantee of $370 pw
Cairns Property Data Snapshot - September Quarter 2008
- Median House Price = $354,200
- Median Rent 3 Bdrm House = $320 pw
- Median Apartment Price = $245,000
- Median Rent 2 Bdrm Apartment = $255 pw
- Rental Vacancy rate = 3.5%
For further info on our property hot spots please contact Equity Resource.
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