New projects may be Cairns' much needed confidence shot: HTW

The Cairns property market remains hampered by a continued lack of confidence and optimism despite solid fundamentals, according to HTW’s February 2017 update.

The valuation firm says low rental vacancy rates, no obvious oversupply in any market sector and continued improvement in tourism are positive signs for the region’s market.

Plans have recently been announced by Syrian billionaire Ghassan Aboud to invest $200 million to redevelop the Rydges Tradewinds Hotel on the Cairns waterfront and to build a new 200-room hotel at the corner of Lake and Aplin Streets in the CBD.

In addition, sales in the $550 million Nova City development by World Class Land, a subsidiary of Singaporean listed company Aspial, have now been launched.

The report suggests that these developments may be the catalyst the Cairns economy and property market needs to overcome investor scepticism created by the numerous other projects that have not managed to get out of the ground over the past few years.

“If successful they will inject much needed confidence into the city,” the report says.

“The performance of the Cairns economy and Cairns property market in 2017 will be dependent to a large degree on the above projects commencing.

“If no large projects get out of the ground we envisage little change and 2017 may well be a carbon copy of 2016 with slow but consistent sale rates, tight rental vacancies and a constrained finance environment.”

A three bedroom unit at 24/189-191 Abbott Street, Cairns City (above) has been listed for $595,000.

Similarly a three bedroom house at 53 Marsden Street, Mount Sheridan (below) has been listed for $389,000.