Cairns home prices hit new record high
Latest data reveals Cairns home prices have shattered expectations with a dramatic surge, reaching record highs with no sign of slowing down. SEE THE FIGURES
Cairns has defied gravity by smashing out a new home price record, despite affordability constraints slowing the pace of growth.
The latest PropTrack Home Price Index, released Friday, reveals the median home price (houses and units) rose to $585,000 — up 2.2 per cent compared to three months ago.
And, Cairns has recorded home price growth of 10 per cent over the past 12 months.
RELATED: Million-dollar territory: Queensland leads home price growth
Across regional Queensland, home prices were up 0.6 per cent over the month, hitting a new peak, and they have grown nearly 10 per cent in the past financial year.
Townsville was the state’s strongest performer over the past 12 months, with its median home price climbing 16.7 per cent to $551,000, followed by Mackay at $557,000 (up 14.5 per cent).
Home prices in regional Queensland have almost doubled over the past five years, rising a whopping 90 per cent.
REA Group senior economist Anne Flaherty said home prices continued to rise across Queensland last month, despite the Reserve Bank’s surprise decision to keep interest rates on hold in July.
MORE: Major risk: Rate cut pressure mounts on RBA
“While the number of homes for sale has slowed over winter, buyer demand remains strong, with auction clearance rates sitting at the highest level in more than two years,” Ms Flaherty said.
“Home prices are expected to break into new territory later this year, with further interest rate cuts expected to add momentum to price growth.”
One of the biggest sales in Cairns in July was that of a beachfront home in Clifton Beach.
The four-bedroom house at 147 Arlington Esplanade sold for $2.5m through Craig Gillard of LJ Hooker.
A four-bedroom house with 13m of water frontage in Bluewater Harbour at 20 Brindabella Quay, Trinity Park, also sold for $1.5m.
MORE: Shock as lenders slash rates to lowest level in 2 years off cycle
And, in Freshwater, a four-bedroom house on 800 sqm fetched $1.32m.
Real Estate Institute of Queensland (REIQ) CEO Antonia Mercorella said regional Queensland markets that were once undervalued, like Cairns, had recorded some of the “most exceptional growth”.
“This strong growth in traditionally slower moving markets is a sign of Queensland’s expanding demand footprint and deeper decentralisation,” Ms Mercorella said.
“This is being fuelled by both owner-occupiers and investors seeking value and growth opportunities.”
But she acknowledged a growing affordability issue had emerged.
“The pace at which prices have raced away has left many prospective buyers feeling left behind and locked out,” Ms Mercorella said.
“If we want to ensure sustainable price growth and ensure future generations the same opportunity to own a home, housing policy must be squarely focused on supply.”
Nationally, home prices also hit a record high of $827,000 in July, though the pace of growth
has slowed. Prices were up 0.3 per cent for the month.
Originally published as Cairns home prices hit new record high