As illustrated in the graphs below, new building approvals within the region have been at a virtual standstill throughout the past 12-18 months. Only approximately 35 new houses have been approved each month; well below the minimum of 50 required in order to keep up with local population growth.
As a result, the rental vacancy rate for houses has seen a sharp downward trend throughout the same period and is expected to continue doing so with no real improvement in building approvals to be seen. Watch this space!
Article text: CAIRNS landlords could reap the benefits of increased rental returns as early as January with the city facing a housing shortage. Are you looking for a rental property?
Tightening rental vacancies, a slump in building approvals and wary investors has left Cairns agents searching for rental properties, particularly houses.
While rental prices continue to stay steady, with the average three bedroom house renting from $350 a week and a two bedroom unfurnished unit starting at $180 a week, agents say the demand for houses will force rental prices up.
A recent Herron Todd White CairnsWatch report indicated vacancy rates for houses was sitting at 2 per cent, with the rate at 3.1 per cent for the same period last year.
"The housing side of things is very tight, especially for this time of year,’’ LJ Hooker Edge Hill director Ross Moller said.
"There are plenty of units but vacant houses are far and few between. We’ve got eight vacant houses and we could put someone into those houses today, but that’s all we’ve got.
"If there isn’t an increase of houses available on the market in coming weeks, especially coming into January, then the demand for houses could see rental prices for houses start to go up.
"On the other hand units might come down to encourage people to rent units.
"There’s plenty of units and there’s no shortage that’s for sure."
Peter Musso - Ray White Cairns Beaches - Real estate agent selling property in Trinity Beach, Kewarra Beach, Clifton Beach, Palm Cove, Trinity Park, Smithfield, Yorkeys Knob, Holloways Beach, Machans Beach
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