With its chilled tropical vibe and strong local economy, it's no surprise Cairns has pulled in so many buyers and investors in recent years - and the momentum is showing little sign of cooling.
"[It] has one of the fastest-growing global economies and that's why it's going to do well in 2026," said Simon Pressley, Propertyology's head of research, who nominated Cairns in this year's realestate.com.au Hot 100.
This Far North Queensland gem keeps attracting lifestyle lovers, job hunters in education, health and construction, plus investors eyeing strong rental yields - at prices that still feel like a steal.
"A detached house for somewhere between $700,000 to $800,000 with a big backyard is very hard to get in a city of substance - Cairns has got that," Mr Pressley said.
The city's booming economy and tight housing stock have driven around 70% capital growth over five years, while a sub-1.5% rental vacancy rate for just as long is keeping investors hooked, he added.
In Cairns City, house prices soared 13.2% to $610,000 over the past year, while units skyrocketed 44.9% to $651,500.
A booming economy and tight housing stock is driving home prices in Cairns higher. Picture: Getty
This compares to Brisbane's median home price of $1.07 million, up 17.7% in 12 months, according to the latest PropTrack Home Price Index.
Kaine Rowe at Belle Property Cairns said people still see real value here.
"People priced out of Brisbane find Cairns appealing, especially post-COVID with flexibility around working from home,” Mr Rowe said.
This one-bedroom apartment in Cairns City sold for $550,000 in December last year. Picture: realestate.com.au/sold
“Cairns is seen as a nice place to live - it's easy to get around, you've got the beaches, you've got the Tablelands close by, so the lifestyle here is attractive."
Mr Rowe said CBD units from $300,000–$800,000 are in hot demand among investors and owner-occupiers alike, while $800,000–$1.2m homes are typically being snapped up by downsizing or upsizing locals.
"Investors can generally get a higher rental return than capital cities of between 4-5%, and for holiday homes, that return can be over 6%," he said.
"Historically, there's been more risk in those investments, but the low Aussie dollar is adding a bit of security around our holiday market here."
The four-bedroom house in Trinity Beach sold for $1.29 million in February. Picture: realestate.com.au/sold
While lifestyle buyers chasing luxury homes in Palm Cove may have eased off slightly, he said results on the beach suburbs remain strong.
"Trinity Beach is still red hot. Trinity Park, even Holloways Beach and Machans Beach, are still seeing some demand. But Yorkeys Knob is a bit quieter following the flooding after Cyclone Jasper."
Diverse economy
Mr Pressley said while Cairns nails the lifestyle with its outdoor adventures and lush landscapes, it's got rock-solid economic bones too, with tourism, education and health all thriving.
He calls this Far North Queensland hub a "jack of all trades".
"Cairns' economic profile now has a much thicker soup than the 1980s when tourism dominated," he said.
Propertyology's Simon Pressley nominated Cairns in this year's realestate.com.au Hot 100. Picture: Supplied
"The James Cook University and defence force (particularly the navy) have a major presence."
As the second biggest city in the top half of Australia and the seventh busiest airport, the city is future-ready.
Government cash for stadium upgrades will lock in its 2032 Olympics events legacy too, said Mr Pressley.
Kaz Hartley at Twomey Schriber Property Group said the past few months have been "very busy", with properties across Cairns selling quickly for good prices.
This three-bedroom home in Kanimbla, about 7km from the Cairns city centre, sold for $750,000 last month. Picture: realestate.com.au/sold
She agrees Cairns is a city on the move.
"Cairns is seeing more migration, more services and more infrastructure. Queensland Health is making major investments, with hospital expansions creating new jobs."
That demand is showing up in various ways - parents are buying apartments for their kids who are studying in the city's universities, companies are purchasing accommodation for staff instead of renting, and investors keep snapping up CBD units, she said.
Mr Rowe sees steady growth ahead for Cairns, despite the current global uncertainty.
"With the construction industry and tourism going well, rentals tight and the lack of new units being built in the city, the fundamentals are still there for our market to keep climbing."
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