This Kewarra mansion is one of the most expensive properties on the market in Cairns
Cairns home prices jumped 10.36 per cent over the past year to hit a fresh high of $601,000 across all dwellings — outperforming the Queensland capital over the same period.
PropTrack’s latest Home Price Index, out today, showed Cairns retained its affordability edge in comparison to Brisbane despite its stellar run, with strong population growth and hot competition for entry-level prices property driving demand.
Ray White Cairns principal Ray Murphy said homes priced under $800,000 were attracting multiple offers, with owner-occupiers also jostling with investors for apartments are prices continued to soar.
An award-winning renovation project at Palm Cove. Photo: Supplied.
“A lot of the price growth here in Cairns has been driven by the lower end of the market, and we anticipate that is only going to increase exponentially with the government’s expanded Home Guarantee scheme, which comes in October.”
The scheme removes place and income limits and raises property price caps, allowing more first-home buyers to enter the market with a 5 per cent deposit and no Lenders Mortgage Insurance.
While Cairns had traditionally attracted young families from Melbourne and Sydney, more buyers were relocating after being priced out of southeast Queensland markets, Mr Murphy said.
“People are just loving the lifestyle of Far North Queensland — it is a perfect storm of conditions creating a great property market for us, and there are no signs of it slowing down,” Mr Murphy said.
Affordable property and an attractive lifestyle were perks drawing buyers
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Brisbane’s property sector also showed its strength, with prices up $93,700 or 10.23 per cent since last year, outpacing national trends.
The hefty rise was the largest annual dollar increase of all capital cities, and close to double the national average increase of $54,100 or 6.24 per cent over the same period, highlighting the River City’s continued climb despite markets cooling most recently.
Brisbane values recorded monthly growth of 0.46 per cent in September, topping up a whopping 92.47 per cent increase over the last five years. The city’s median value hit $952,000.
REA Group senior economist Eleanor Creagh said price growth was expected to continue, as all mainstream economists tipped the Reserve Bank of Australia (RBA) to keep interest rates steady at 3.6 per cent at its September meeting yesterday.
REA Group senior economist Eleanor Creagh
“For households, earlier rate cuts this year have lowered mortgage repayments and boosted borrowing capacities and confidence,” Ms Creagh said.
“This has helped to drive a synchronised housing market upswing, with demand building into the spring selling season.
“While affordability pressures remain, this year’s series of interest rate cuts, improved sentiment, and the October expansion of the Home Guarantee Scheme, and expected to keep upward pressure on home prices in the months ahead.”
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