The Dogherty family have sold their house on 2 Quartzborough Promenade, Trinity Park. Stephen and Jude Dogherty, with kids Macey, 2, Finley, 7, and Aidan, 11. PICTURE: JACK LAWRIE.
Cairns real estate and economic experts have revealed the current events that could lead to the region’s most significant property prices increase in more than a decade, while warning no one has a crystal ball.
As the nation’s major cities report double-digit capital growth in the past 12 months, Cairns has continued its decade-long trend of steady house prices with a 1.2 per cent increase, according to July’s realestate.com.au data.
In that same period, Brisbane house prices rose 3.6 per cent, Sydney’s 14.3 per cent and Melbourne’s 14 per cent.
And Far Northern homeowners would be optimistic to expect those percentages here, but as Cairns agents report high demand for houses and land sales skyrocketing while interest rates remain low, there is the potential for capital growth as well.
Real Estate Institute of Queensland’s Cairns zone chairman Tom Quaid said the capital cities had been benefiting from mass migration numbers while there wasn’t the same level of new blood in the Cairns market. He said in the absence of overwhelming demand, newer stock could help drive up prices.
REIQ zone chairman for Cairns and the Far North Tom Quaid, standing at a new housing estate in Smithfield. PICTURE: CHRIS CALCINO
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“So in a typical economy as new developments come along … the prices go up. And it gradually drags the bottom of the market up with it,” Mr Quaid said.
“In the absence of new stuff coming in to justify lifting the prices you’ve just got all the existing stock getting older and nothing to push prices up unless you get a certain level of demand. So with the grants and all the new construction that’s going on at the moment, they have the potential to set a new benchmark in pricing and lift everything up.
“Typically these new homes are going to cost more, between the house and the land, than what you’d pay for an equivalent five-year-old home in a similar area. So prices will go up on the back of that. Whether it’s a sustained increase, that’ll be the question.”
Cairns accounting firm Halpin Partners managing director Darren Halpin said population growth was fundamental for capital appreciation and, while the region wasn’t “actively pushing” for a rise in residents, it was happening in the background.
“A lot of people are moving from the capital cities to Cairns because of what lifestyle we have to offer,” he said.
“So if we as a city marketed our attractiveness as a place to come and live, if we had a co-ordinated effort, it would get results. And now is the time to do it.”
He said government spending on infrastructure and attractions would help speed up Cairns’ population growth and the northern suburbs homeowners would likely be among the first to benefit.
Trinity Park couple Stephen and Judy Doherty were able to buck the slow capital growth trend after a 10-day period saw them sell their Quartzborough Promenade home “above expectations” with Thomas Baldwin Real Estate. “In that same time we were able to buy our new home at Trinity Beach,” Ms Doherty said.
The post Cairns Real Estate: Property prices could rise appeared first on realestate.com.au.