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Demand is outstripping supply across the Cairns market, particularly in locations within 25km of the city, new figures have shown.
Cairns housing supply is struggling to keep up with demand, as listings drop dramatically on the back of rising buyer interest, RE/MAX Cairns real estate principal Ray Murphy revealed.
According to Mr Murphy, saving patterns, as a result of contracting travel opportunities, and the promise of a long-term interest rate hold have put Cairns in the spotlight, with buyers now flocking to the already well-known area.
“This time last year, we had 300 listings, and now we have around 200,” Mr Murphy said.
“Buyers are cashed up and making quick decisions.”
Mr Murphy pointed out that areas from Gordonvale to Palm Cove and out to Kuranda are the worst affected.
“Especially properties in the mid-range, $400,000 to $600,000, which tend to be the four-bedroom/two-bathroom homes, often with pool,” he said.
The sight unseen trend is also growing.
“At the end of last year, I said that 30 per cent of buyers hadn’t set foot in the property they bought, and that has definitely increased,” Mr Murphy said.
Who’s buying?
But while there are people moving into the region, Mr Murphy pointed out that most of the demand is actually coming from local buyers seeking an upgrade.
First home buyers also make up a large portion of prospective buyers in Cairns as housing affordability and government incentives encourage them to take a leap into the property game.
“We saw a rise in land purchases, but first home buyers are still buying established homes, often because these are the locations they want to live in, the buy-in price works for them and they are happy to make their own improvements,” Mr Murphy commented.
Some buyers also aim to maximise investment opportunities as the Cairns rental market continues to tighten, with less than 1 per cent vacancy rate.
“Cairns has always had a high rental yield, but current rents are going up by 8 to 10 per cent with each new lease. [Those who want to live] in this region have to rent and face competition and rising prices because rentals are in short supply,” the real estate principal concluded.
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