Cairns Property Market on Rise

[Guest Ktee]

IT'S no surprise to the people "on the ground" but figures are finally supporting the professed property upturn. Cairns is "officially" in the recovery stage according to the latest Herron Todd White CairnsWatch report.

And it's no longer a buyers' market.

"The Cairns residential property market is building in momentum ... to the start of recovery phase," Herron Todd White research director Rick Carr said.

"Many suburbs are already in a recovery phase with much stronger buyer demand evident and sales activity lifting significantly over the last six months.

"They are no longer buyers' markets and are moving into equilibrium between buyers and sellers.

"Prices are also rising in these areas, stock is depleting and previously unsaleable stock is starting to move."

 

Mr Carr said the market was being buoyed by confidence following the proposed $4.2 billion Aquis resort."Examples are a Yorkeys Knob townhouse potentially worth $170,000 to $180,000 three months ago, has recently gone under contract for $210,000.

 

He said a three-bedroom house with a granny flat wasbought at the peak of market in 2007 for $380,000 and recently sold for $440,000.

"Even without the extra stimulus from the Aquis proposal, the Cairns market would still be in recovery."

REIQ Cairns zone chairman Greg Clyde-Smith said open homes were attracting crowds of potential buyers and some vendors had multiple offers.

"I've been saying this for six months," he said.

"If properties are priced well, it's not uncommon to see three or four offers on the property.

"Some of the final offers are going beyond the listing price."

Mr Clyde-Smith said those looking to buy should get in quickly.

"If you are going to sell, now is the perfect time, especially if you are buying and selling in the same marketplace," he said.

The report revealed house sales in Cairns increased 31.8 per cent between September 2011 and September 2013, and units rose by 37.1 per cent.

Cairns Home Loans lending manager Gus Soper said low interest rates and modest property prices had led to increased inquiries.

"Customer confidence is up for numerous reasons ... a strong rental market with very low vacancies, a change of government offering the promise of stability and a number of planned developments providing opportunities for jobs,"