Cairns Property Market Review by Herron Todd White

A current review of Cairns' property market conditions provided by Herron Todd White in their national 'Month in Review' publication March 2012:

Investors are sadly lacking in the Cairns residential property market at present. However with the market presently showing downward pressure on property prices and upward pressure on rents, rental propositions to investors in Cairns ought to be becoming increasingly attractive.

“Tight rental market conditions, rising rents and ‘affordable’ property prices are providing strong fundamentals for investors. Once the word gets around, please form an orderly queue.”

Click to Enlarge

In December 2010 the median house price in Cairns was $368,000 and the median weekly house rent $320. Twelve months on, in December 2011, the median house price in Cairns has headed south, to $332,000, while the median weekly house rent has headed north, to $330. Rental yields have thus improved significantly.

Vacancy rates for rental property have reduced considerably over the past twelve months, with the market now sitting at the lower end of the ‘balanced market’ range normally accepted as a 3% to 5% vacancy rate. Houses for rent are in short supply, with a vacancy rate of 2.1% during January 2012, while units recorded a trend vacancy rate of 4%. The overall market vacancy rate stood at 3.1%.

The rental market is expected to come under further pressure during 2012 because of on-going demand and the lack of new private rental housing construction. Tight rental market conditions, rising rents and ‘affordable’ property prices are providing strong fundamentals for investors. Once the word gets around, please form an orderly queue.

View the full 'Month in Review' publication HERE

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.