Property options abound in Cairns in sub-$500,000 category: HTW

Half-a-million dollars offers plenty of property options to owner occupiers or investors in Queensland’s Cairns because the sum is well above the median prices, say valuation firm Herron Todd White in their July residential market report.

A $500,000 property investment in Cairns will secure a well located modern executive style suburban dwelling or alternatively an above average quality apartment in the Cairns CBD, located on the mid to upper levels of a near new high rise unit development. 

“Indeed the purchaser or investor at this price level would find a large range of sectors, styles and locations available to choose from. However, it remains impossible to spend $500,000 on a new apartment due to the absence of new unit construction at that level,” says the HTW report. 

The $500,000 mark in the Cairns market is relative to the current (April 2016) median price levels of approximately $385,000 for houses and $220,000 for apartments. Over the past twelve months, 75% of houses and 95% of apartments sold in Cairns transacted for $500,000 or under. 

The Cairns market sits at the rising market stage of the cycle but is currently experiencing a pause due to factors such as tighter investment lending criteria and the uncertainty over negative gearing. This is indicated by sales volumes progressively softening over the past six to nine months while prices have reverted to minimal to no growth. 

“Nevertheless our prognosis is for the market to return to slow growth as the region’s tourism-based economy continues to improve,” says the report.

Property Observer looked up a recent sale on www.realestate.com.au that fits the bill. A three-bedroom, two-bathroom house at 5 McCrae Street, Cairns, Qld 4870 sold for $397,000.