Cairns rental prices skyrocketing and worse to come, say experts

Rental vacancy rates are at the lowest level in 16 years and prices have increased almost 25 per cent over three years, with the squeeze set to continue. Read how much you can expect to pay.

NEWLY-RELEASED data on rental stress shows Cairns is faring comparatively well compared to the Gold Coast and other regional Queensland centres – but locals would beg to differ.

Digital Finance Analytics (DFA) research into rent stress showed the most rent stressed postcode in regional Queensland was Hervey Bay, followed by Rockhampton, Toowoomba, Bundaberg, Gladstone, Mackay and then Cairns.

A one-bedroom unit at 26/6 Chester Court, Manunda is among the cheapest rentals in Cairns at $230 per week. Picture: supplied.

In Cairns, house rents are up 9.5 per cent over the past 12 months and 24.1 per cent higher over the past three years, CoreLogic research director Tim Lawless said.

“Unit rents are up 10.6 per cent over the past 12 months and 22.2 per cent higher over the past three years,” he said.

This beautiful four bedroom home at 3-7 Mullins St, Whitfield, is for rent for $995 per week. Picture: supplied.

The median rent for houses in September 2019 was $465, rising to $527 in September 2021 and $577 by September 22, the latest data available.

For units, the median in September 2019 was $339, rising to $374 in September 2021 and $414 by September 22.

A one-bedroom unit at 26/6 Chester Court, Manunda is among the cheapest rentals in Cairns at $230 per week. Picture: supplied.

Rentals have been scarce as hen’s teeth for some time, dropping from a high of a 2.8 per cent rental vacancy rate in April 2020 to just 0.5 per cent now.

Mr Lawless said increasing interstate and overseas migration would put more pressure on the market.

This three bedroom home at 25 Lakeside Dr, Smithfield, is for rent for $600 per week. The modern home is on a 305sq m block. Picture: supplied.

But he said affordability constraints could steady rental price growth.

“Renters might look for more affordable options such as forming larger households, or move back home with Mum and Dad,” he said.

This four bedroom home at 26 Rainbow St, Kanimbla, is for rent for $670 per week. The master bedroom has an ensuite and the property is at the end of a cul-de-sac. Picture: supplied.

DFA director Martin North said in many instances, rents were going up by 15 per cent to 20 per cent at a time, putting huge pressure on households.

“Many renters would much rather buy than rent but can’t, investors can put up rents knowing they be able to find a new tenant or they have sold or plan to sell for the best price,” Mr North said.

A self-contained granny flat or teenager’s retreat is a feature of this attractive home at 12 Moresby St, Trinity Beach, which is for rent for $560 per week. Picture: supplied.

“Then we also have short-term rentals that became long-term rentals during Covid now going back to the holiday letting pool.

“All that just combines to hike up the pressure on renters and the rental market, with less stock and ever increasing rental prices,” Mr North said.

A one-bedroom unit at the Lakes Resort on Greenslopes St in Cairns North will set you back $440 per week. Picture: supplied.

“We talk a lot about mortgage stress but this is probably the most critical issue we are facing at the moment.”

Mr Martin said in Cairns, rents had been subdued, and even decreased, in recent years due to low competition, so they were coming off a low base.

Apartments in the prestigious waterfront complex Harbour Lights at Marlin Parade rent for about $1200 per week. The complex has a gym, spa, sauna and pool. Picture: supplied.

He said data showed rent pressures in regional areas would intensify.

“Rents are rising dramatically but wages are not, and that puts a lot of pressure on households at the same time that inflation is through the roof,” Mr North said.

Mr North said that a public policy focus on rental sector solutions was urgent, warning that overseas migration was only going to compound the problem.

Apartments in the prestigious waterfront complex Harbour Lights at Marlin Parade rent for about $1200 per week. The complex has a gym, spa, sauna and pool. Picture: supplied.

SQM research showed the national residential rental property vacancy rate remained constant at 0.9 per cent in September.

That represented the lowest national rental vacancy rate since 2006, according to SQM Research managing director Louis Christopher.

Originally published as Cairns rental prices skyrocketing and worse to come, say experts