Cairns real estate: $500,000 house median for region in sight

A boom year in Far North property has pushed the market out of the doldrums with experts predicting a record benchmark will soon be reached.

Bronwyn Farr

@bronwyn_farr

2 min read

December 18, 2021 - 5:30AM

The Cairns Post

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CAIRNS is on track to hit the half-million dollar mark for houses as the Far North property boom soars unabated.

While southern buyers are snapping up homes on the northern beaches, agents say locals are dominating the market for suburbs closer to the CBD.

The median for Cairns region has soared this year from $425,000 to $465,000, according to the latest available CoreLogic data.

And many suburbs have a median of much more than $500,000.

Offers of more than $549,000 were sought for this three bedroom home at 3 Leoni Close, Mooroobool – it sold for $612,000 in mid-November. Picture: supplied.

LJ Hooker Edge Hill director Nadine Edwards said hitting the $500,000 mark was inevitable.

“If you look at all the suburbs above $500,000, and some suburbs have higher turnover than others, so more properties above $500,000 will be sold,” Ms Edwards said.

“It’s hard to get anything under $500,000 on the northern beaches and the southern corridor is definitely catching up – it’s just a matter of time.

“With buyer activity still outstripping supply, it is a natural progression,” she said.

LJ Hooker Edge Hill Real Estate director Nadine Edwards said hitting the $500,000 mark for the Cairns region median house price was inevitable.

“If we compare ourselves to capital cities, half a million for a good strong regional town is still relatively affordable.

“We were probably quite low in comparison to some areas for some time now, and it’s correcting.

RE/MAX principal Ray Murphy said it would be no surprise to see the median hit $500,000.

“We are very confident in saying there are no so signs of the market slowing down, with the reopening of the borders, inspection requests and property inquiries have increased dramatically,” Mr Murphy said.

“Whilst there has been strong capital appreciation and growth in terms of our median houses price, Cairns is still perceived as an extremely affordable city not only for owner-occupiers but also investors alike.

RE/MAX principal Ray Murphy, pictured with agent and Udo Jattke, says while it is hard to make predictions, there is every sign strong growth in the Cairns property market will continue.

“With the appeal of the lifestyle that the Far North has to offer, I believe we will continue to see strong numbers making the move from metropolitan cities to regional towns such as Cairns.

“This is the best market we have ever seen.”

Real Estate Institute of Queensland Far North chair Tom Quaid said it was time for buyers to move fast as price rises eroded the value of a deposit.

“Given the current market trajectory and the ongoing pressures on the cost of new construction, it is well within the realms of possibility that we see the median house price across the Cairns market crest that all important $500,000 mark in the next 12 months,” Mr Quaid said.

“Cairns has been in a fairly steady, but depressed, market for an extended period post-GFC, with relatively low population growth and minimal new construction following the previous boom in the early 2000s,” he said.

REIQ Far North chair Tom Quaid says several factors including increasing construction costs will contribute to Cairns reaching the $500,000 median price mark for a house. Picture: Brendan Radke

“With our population now back on the rise, that lack of new development is catching up to us, with tight supply being stretched by demand.”

He said the Cairns region had geographic constraints.

“We have a relatively thin tract of land between mountains and coastline on which to build, and rising costs have meant that land is more expensive to develop, along with the houses that go on top,” Mr Quaid said.

“I can’t see us returning to a market of sub-$400,000 house and land packages any time soon, particularly as that benchmark has crept ever closer to $500,000 over the course of 2021.”