Cairns Post: Rental Demand On the Rise

Not "breaking news" by any stretch however I have chosen to post this article simply to highlight the level of coverage that is being given to the rental market within local news sources at present. With the lengthened slow-down in local construction experienced there is little doubt that this will be an ongoing topic of particular concern within our marketplace for a long time to come.

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Article text: DEMAND for rental properties has risen in Cairns with reduced vacancy rates across the region and Queensland and median house sale prices have fallen in the same period, according to two separate reports.

The Real Estate Institute of Queensland (REIQ) released the March residential vacancy rates on April 30 that showed Cairns rental vacancies have dropped by 1.3 per cent since this time last year.

REIQ Cairns chairman Greg Clyde-Smith described the property market as “reasonably healthy”.

“Cairns has quite a different economy from the rest of the state but the figures revealed are not that different – from 3.8 (per cent) last year to 2.5 per cent this year, it’s a substantial drop,” Mr Clyde-Smith said.

“We are showing signs of growth as tourism is slowly starting to recover.”

Mr Clyde-Smith said sales were also quite lively although property prices aren’t very high and he forecasted that if the economy recovers as well as expected it will bring more jobs to the region, which will put more pressure on the rental market.

“There has also been an increase in inquiries for investment properties and we are hopeful the interest rate changes from the reserve bank yesterday (May 1) will enhance sales,” he said.

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An RP Data report to January 2012 said median sales prices of houses in the region had dropped.

At Clifton Beach median sales prices were down by 20 per cent in a year (23 sales) and 15.6 per cent in a quarter, while rental yields in the same area increased by 5.6 per cent.

At Holloways Beach the median house price per quarter dropped by 12.2 per cent (-33.6 per cent in a year with 14 sales) while rental yields increased by 8.1 per cent.

The Cairns Post - Saturday May 5th 2012
Writer: Denise Carter

Peter Musso licensed real estate agent at Ray White Cairns Beaches selling property in Cairns' beautiful northern beach suburbs including Trinity Beach, Kewarra Beach, Clifton Beach, Palm Cove, Trinity Park, Smithfield, Yorkeys Knob, Holloways Beach, Machans Beach, Caravonica and surrounds.