Cairns real estate: Gordonvale, Edmonton hot suburbs for first home buyers, families in 2022

Property experts have pinpointed which parts of Cairns first home buyers and families should focus on for the best deals as hungry investors flood the market.

Bronwyn Farr

4 min read

November 6, 2021 - 6:00AM

The Cairns Post

Property

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PROPERTY experts have pinpointed which parts of Cairns first home buyers and families should focus on for the best deals as hungry investors flood the market.

Southern and local investors’ insatiable appetite for Far North property might make nabbing a great deal on a family home a tricky task in the year ahead.

But southern suburbs including Gordonvale and Edmonton remain affordable, though prices are on an upswing.

Cairns Property Office agent Robyn Hawley-Whitton said the further south buyers looked, the more affordable property became.

“More and more people are looking at towns such as Babinda, Mirriwinni and down to Innisfail as more affordable for those first starting out,” Ms Hawley-Whitton said.

Renee Straguszi of Cairns Property Office at a sold property at Byers St in Edmonton, urges those seeking a home to focus on the southern suburbs. Picture: Brian Cassey

Underscoring interest in Gordonvale is a $56,000 median rise this year, to $385,000, compared with the Cairns region which rose by $20,000 overall to $455,000.

“Gordonvale and Edmonton are still showing good value for money,” Ms Hawley-Whitton said.

A suburb that flies under the radar that could prove a smart choice would be the small, tightly-held suburb of Stratford – the median has increased from $515,000 to $650,000 over five years but it has stayed around $650,000 all year with 21 houses and 17 units sold.

The entire region has experienced a frenetic year in real estate with prices on a steep upward curve and stellar prices achieved for up-market northern beaches properties and for homes on acreage in suburbs, including Redlynch.

While there is no doubt it is a tough market for buyers, a trend is now emerging where empty-nesters are more likely to sell the long-time family home and downsize to an apartment, freeing up larger homes for families.

FNQ Hot Property owner Nathan Shingles says properties near the water on the northern beaches will continue to dominate the upper end of the market. PICTURE: BRENDAN RADKE

Investors across the eastern seaboard are rapidly recognising the strong yields Cairns property offers, with rents increasing by 10 per cent this year.

Although rental prices can be crippling, more properties trickling into the system could ease some of the pressure.

For the lucky few who can afford executive living, more upscale properties at desirable addresses will become available, according to FNQ Hot Property agent Nathan Shingles.

Investors pounced when offers of more than $1.8m were called for a Trinity Park home at 14 Apollo Quay recently.

It is now under contract, shortly after hitting the market, Mr Shingles said.

“It’s unusual, investors are coming back to the market, they haven’t been there for a few years, especially at the higher end,” Mr Shingles said.

“They are planning long term to potentially live in the property when they retire, they’re picking up a decent quality home they can see themselves in further ahead.”

He believes the prestige market in enclaves such as Bluewater at Trinity Park will dominate future trends as cashed-up southerners continued to look further north than the “overcooked” markets at Byron Bay and Noosa.

“We may even be on the cusp of the largest gains in prestige property that we have ever seen,” Mr Shingles said.

O’Brien Real Estate Cairns and Beaches agent Daniel Arnott said in the wake of the 2009 Global Financial Crisis, real estate in the region had stagnated.

“Prices are where they should have been a long time ago; Cairns was in a backward market for well over 10 years and a lot of people lost money after the GFC – now they’re starting to get some decent capital growth,” Mr Arnott said.

A consensus has emerged from senior property experts on two themes: northern beaches property prices will continue to escalate dramatically, driven by an interstate influx, and the southern corridor of Cairns – where blocks of land at new estates are selling like hot cakes – is where locals seeking to break into the market should focus.

This three bedroom home on 1.17ha at 1-3 Cleary Close Gordonvale was for sale with offers in the $700,000s sought. Picture: supplied.

“Palm Cove and Trinity Beach are idyllic suburbs that southerners are aware of,” Mr Arnott said.

At Palm Cove, the median has rocketed up this year to $812,500, according to CoreLogic.

“Other sought after suburbs are Edge Hill, Whitfield and there will be more interest in Freshwater, there’s quality schools and green belts around you – but for first home buyers, the southern corridor is more affordable,” Mr Arnott said.

The market at Freshwater is solid with the median increasing from $520,000 to $577,000, eclipsing the Edge Hill median of $520,000.

“A lot of infrastructure – the highway upgrade, schools and shopping centres, is planned for the southern corridor so buy now, wait for that infrastructure to grow and it will have a flow-on effect in terms of capital growth,” he said.

Earthworks have begun on the construction of new blocks of land at the Mt Peter Estate south of Edmonton. Lot sizes ranging from 375sq m to 645sq m are under development, to be released for sale later this year. Picture: Brendan Radke

PropTrack economist Angus Moore said the most heavily searched suburbs on realestate.com.au by investors was Palm Cove and Trinity Beach, with both houses and units sought.

While agents have lamented a shortage of stock, Mr Moore said there was a six per cent increase in listings in September.

Cairns has just 13 per cent of regional Queensland sale listings.

Demand is hotting up at Mareeba, prompting an 89 per cent increase in listings.

There’s been a surge of new homes listed at Redlynch, Edmonton, Port Douglas and Cairns North in recent months.

Top 10 fastest value growth suburbs (Source: CoreLogic)

Brinsmead 21.9 per cent, 40 sold

East Innisfail 20.4 per cent, 40 sold

Freshwater 17.7 per cent, 35 sold

Innisfail Estate 16.9 per cent, 28 sold

Redlynch 14.6 per cent, 88 sold

Clifton Beach 14.1 per cent, 44 sold

Kewarra Beach 13.6 per cent, 55 sold