This two bed home at 6 George Street, Gordonvale, is on a 496 sqm block and sold for $540,000 on February 25, 2026.
Cairns house prices have surged by over $78,000 in just the past year, rising by more than the average salary and hitting a new record as a chronic shortage takes hold.
The annual jump, revealed in the latest PropTrack Home Price Index, shows houses recorded the strongest dollar gain despite posting a relatively moderate 12.1 per cent increase – beaten by units which climbed 18.47 per cent as investors and first-home buyers seek more affordable entry points into the booming market.
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REA Group senior economist Eleanor Creagh.
A two bed unit at 608/44-62 Clifton Road, Clifton Beach, sold for $525,000 on Feb 27, 2026.
Overall dwelling prices rose $77,503 to $647,663, while units were up $69,323 to $444,340 and houses reached $727,723, representing a $78,460 annual jump.
This according to the latest PropTrack Home Price Index, out Monday.
REA Group senior economist Eleanor Creagh said it is possible that Cairns and Townsville prices could peak this year but there was still double digit growth.
“It’s a normal part of the market cycle after they were consistently among the top regions in the country for growth over many years,” she said.
“Growth is moderating compared to the previous momentum, but it is still high. Cairns is still recording double digit annual growth. Townsville is still running hot, annual growth is approaching 17 per cent. It’s 14 per cent in Cairns. This is still very strong, especially in the context of national rises.”
Real Estate Institute of Queensland Cairns chair Tom Quaid said a severe supply shortage was driving the surge at the same time that cashed-up southern buyers were seeking investment opportunities cheaper than their capitals.
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Tom Quaid of Quaid Real Estate is also REIQ Cairns zone chair. Picture: Stewart McLean.
This three bed house at 5 Boland Street, Westcourt, sold for $700,000 on Feb 27, 2026.
Mr Quaid said “$720,000 or so used to buy you a nice executive home in most suburbs, or at least certainly that would be paid pre-COVID. Now, you’re more likely to find that’s an older, four bedroom two bathroom home in some of the newer suburbs, or if you’re looking closer to the CBD or in some of the more premier areas, then that might be a three bedroom two bathroom home that might require a little bit of work”.
First home buyers were hardest hit by the shrinking of choices within their budget, he said.
“If you had a $400,000 budget in 2020 that still got you a three bedroom, one or two bathroom home in a lot of suburbs. Now, 400 grand is a block of land or it’s a unit,” Mr Quaid said.
“We were spoiled for a long time where you could skip a couple of rungs and go straight to that shiny new house. Now a lot of people are having to take a few steps and say my first home is unlikely to be my dream home.”
His biggest warning was for buyers who delayed entering the market hoping for a correction in prices.
“I’ve spoken time after time with people that felt that things were too expensive and they wanted to wait until it cooled down. Those same people are now having to increase their budget by $100,000, $150,000,” Mr Quaid said.
“If you’re in a position to buy, if you’ve found the right spot, hesitation is rarely paying off.”
Annual Dollar Rise by Property Type
Type Median Value Year-on-Year Change Annual Dollar Rise
All dwellings $647,663 13.59% $77,503
Houses $727,723 12.10% $78,460
Units $444,340 18.47% $69,323
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