A year in review: Real estate agents share their thoughts on 2024 and top tips for next year

Inner city suburbs outperformed expectations in 2024 as Cairns property prices continued to climb, but there are still bargains up for grab in 2025 if you know where to look.

Inner city units were in hot demand across Cairns in 2024 with realtors expecting suburbs like Bungalow, Manunda and Mooroobool to explode in 20245. Unit 29, 93-95 McLeod Street, Cairns City is in the middle of the competitive market and is available though Belle Property.

Inner-city suburbs outperformed market expectations in 2024 as Cairns property prices climbed, but there are still bargains to be found heading into the new year, if you know where to look.

Skyrocketing rents and low vacancy rates have pushed many buyers to enter the real estate market for the first time, according to agents, which has contributed to steady growth across the Far North.

CoreLogic data shows the median house price in the Cairns local government area grew by 6.25 per cent in the year leading up to the end of the March quarter, with a median annual sales price of $595,000.

Regional Queensland has also experienced the biggest net change in million-dollar suburbs across regional markets, according to the latest CoreLogic Million-Dollar Markets report, with Goldsborough ($1,067,791) and Palm Cove ($1,022,096) both making the list.

But real estate agents say whether you’re renting, buying or selling there is still value to be found in the Far North.

SELLERS

Champions in Real Estate sales adviser and negotiator David Galloway-Penney said apartments in the previously overlooked inner-city suburbs had experienced a boom year.

“If you’re a seller of an apartment, you’ve done very well in the last 12 months,” Mr Galloway-Penney said.

“Some of the inner-city and surrounds such as Parramatta Park, Cairns North, Westcourt and Bungalow have seen over 30 per cent growth in their values in the last 12 months.

“We’ve got such a constrained rental market that it’s just pushing people into buying as opposed to being able to rent.”

House prices followed a similar trajectory with inner-city suburbs like Manunda, Mooroobool, and Westcourt all performing well.

Mr Galloway-Penney said he would have his eyes set on these suburbs leading into 2025.

“I would really be looking out for Bungalow and Westcourt next year, those really inner-city suburbs … I think they are going to go nuts.”

“I’ve got one property that I sold recently in Bungalow, which sold only 12 months ago for 605,000 and it’s back under contract for 699,000 in less than 12 months.”

“They’ve done nothing to the property, but there’s such a strong demand.”

Champions in Real Estate sales agent David Galloway-Penney, pictured at his Earlville home with his West Highland Terrier Cross Rev. Picture: Brendan Radke

BUYERS

For the past few years Cairns has been dealing with the hangover of a Covid property boom, during which high numbers of southern buyers looking for a sea change put pressure on supply and drove up prices.

But the tide has turned somewhat and in 2024 agents say there was a larger proportion of locally-based buyers snapping up both family homes and investment properties.

Twomey Schriber Property Group sales adviser Daniel Roser estimated four times as many clients were looking for an investment property compared to 2023.

“A lot of people in Covid were looking to upgrade their lifestyle and move into bigger, nicer homes,” Mr Roser said.

“This year, our big focus was a lot of investment properties … I’d have to say about 40 per cent of my sales were to investors, which was a pretty large portion of the market.”

South Cairns suburbs like Gordonvale are tipped to provide the best value for buyers heading into 2025. The pictured property is 29 Moller Street, Gordonvale available through Cairns Property Office.

Despite competition from investors, Mr Roser said there was still great value on offer for families in the south of Cairns.

“Bentley Park, Edmonton, Gordonvale, all went very well, just due to good entry and price points,” Mr Roser said.

“You can still get brand new homes at around $500,000, which is just really good value for money.”

Mr Galloway-Penney said those looking for an investment property should also consider broadening their scope.

“Innisfail has been touted as one of the fastest-growing regional economies in Queensland from agriculture, tourism, and manufacturing,” he said.

“I think it’s going to be a big boom suburb for investors.

“Next year I would be looking at potentially investing into Innisfail.”

RENTERS

For renters, 2024 was a grim year, with the region’s vacancy rates staying at less than 1 per cent and prices rising.

But Mr Galloway-Penney was optimistic a shift away from holiday rentals could free up supply.

“I feel the Airbnb market is starting to drop off a bit … the owners that are currently owning Airbnb’s are transferring a lot of stock into permanent rentals,” Mr Galloway-Penney said.

“I still think there’s good value from rents in the inner-city areas like Cairns North, even Cairns CBD, value for money-wise, you’re getting some beautiful units in the city that are renting out quite well.

“Even Edge Hill and Whitfield are still quite affordable suburbs to rent in, you can still pick up a two-bedroom apartment in Edge Hill for $500 a week.”

The Cairns rental market has become increasingly tight in recent years as low vacancy rates and increased Airbnb numbers have limited options. Despite the market some high end suburbs like Edge Hill still have affordable options for renters. The pictured property is 318 Pease Street, Edge Hill and is available to rent through Twomey Schriber Property Group.

Despite the value in some suburbs Mr Galloway-Penney admitted the market was still tough and suggested renters be as organised as they could be to get ahead.

“Look, it’s slim pickings … we’re still under 1 per cent for vacancy rates at the moment,” Mr Galloway-Penney said.

“Come ready to go with pre-written reference letters from previous landlords or property managers and come in with all your documentation .... and make sure you’re available to attend inspections.

“It is really tough for a property manager to get a gauge on a viable tenant without being able to meet them.”

Originally published as A year in review: Real estate agents share their thoughts on 2024 and top tips for next year