Cairns property market poised for recovery in houses

A number of property analysts say the Cairns property market is on the verge of a recovery, but mainly for houses.

Property prices in the far north Queensland town suffered greatly during the global financial crisis but it may be about to spring back.

“The Cairns market is improving. Once again detached housing very much so, with units there isn't much improvement there. It’s much more investor driven and run by employment,” Tim Lawless says.

“Cairns is benefiting from more air travel coming in from China which is having a real impact on the local economy but values are still a lot lower than 2007. It will take a long time.”

Herron Todd White say the market there is nudging close to a recovery but there are still low priced opportunities to be found.

“Pockets of low priced housing exist in a number of suburbs, but the traditionally cheaper areas are Manoora, Woree, White Rock and the lower parts of Mooroobool,” Herron Todd White’s latest monthly report says.

“House prices in these areas tend to start at around $200,000 and show median prices of around $270,000. Also worthy of consideration are Manunda, Bungalow and Westcourt, which are in a better ranked socio-economic stratum but still show median prices sub $300,000.

“The unit market is showing large numbers of properties for sale and units have become extremely difficult to sell unless at bargain basement prices.”

Buyers agent Rich Harvey says investors are still slightly.

“I have put a couple of clients into the Cairns market many years ago, and it's coming back on a few peoples radar but it's very tourism reliant. There's a bit of agriculture, but it's not as diverse as Townsville. Townsville has defence, education, mining and agriculture.”

Data from the REIQ released on September 6 shows house prices remained unchanged for the year ending June 2013 across the Cairns LGA. Over the quarter house prices fell 2.6%.

But certain suburbs have performed quite well. House prices in Clifton Beach rose 18.5% over the year, 10.3% in Gordonvale and 9.7% in Smithfield.

Over the quarter Mount Sheridan was the strongest performer, followed by Bentley Park at 9.4% followed by Bayview Heights at 8.7%.

The unit market didn’t perform quite so well with prices fall 9.3% for the year across Cairns and 10% over the past quarter.

Manoora and Trinity Beach were the only unit markets to increase in value over the quarter, going up 9.4% and 5.1% respectively. Compare that to Cairns City where prices fell 38.1%.

The current median house price in Clifton Beach is $523,000.

A four bedroom home with a swimming pool at 5 Spur Close is listed for sale at $509,000. It’s been on the market for more than a year. In 2005 it sold for $385,000, according to RP Data.

A five-bedroom home with an even bigger pool at 50 Endeavour Road is on the market for $530,000. In 2005 it was on the market, but didn’t sell, for $420,000, according to RP Data.