Demand for property in Cairns is surging, driving prices up by about $75k in the past year.
Cairns property prices jumped about $75k in just 12 months to $638,000, recording growth double Sydney’s pace and Queensland’s strongest unit price surge at 19 per cent.
The 19 per cent unit growth significantly outpaced Cairns’ overall 13.2 per cent dwelling growth, according to the latest PropTrack Home Price Index released Monday, reflecting strong demand for more affordable entry points into the market.
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An 81 sqm one bedroom apartment at 906/99 Esplanade, Cairns City, sold for $550,000.
Units jumped to $442,000 while houses reached $715,000, as far north Queensland joined the statewide property boom that has seen Greater Brisbane house prices jump a record $148,900 in 12 months – double the average Queensland worker’s earnings.
PropTrack economist Angus Moore said Cairns continued to benefit from lifestyle factors and relative affordability, though that advantage was diminishing.
“Cairns continues to be fairly solid. And, not radically dissimilar from what we’re seeing in Brisbane or in regional Queensland more broadly,” Mr Moore said.
“It has relative affordability, or at least used to, perhaps less so these days given how much prices have gone up. And lifestyle factors are certainly relevant for buyers.”
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PropTrack economist Angus Moore.
Mr Moore said Queensland had undergone a dramatic affordability transformation.
“Brisbane has become a lot less affordable than it used to be. Queensland is now the third least affordable state in Australia, coming from being one of the most affordable states coming into the pandemic,” he said.
“That really just reflects the fact that prices have doubled since the start of 2020.”
Greater Brisbane dwelling prices have surged 95.7 per cent in five years, with regional Queensland up 88 per cent.
Place Estate Agents Alex Rutherford said market conditions were at fever pitch in Queensland.
“It’s ridiculous,” she said. “It’s out of control. Once we list a property online, we get email enquiries in the first 30 seconds … Depending on the price point, it can get a bit desperate. The fear of missing out is very significant.”
Alex Rutherford of Place Estate Agents.
She said one-bedroom units are the hottest ticket items now, seeing a groundswell from the federal 5 per cent deposit scheme for properties under $1 million – with one Brisbane inspection on Friday seeing 32 groups trying to squeeze through a 38 sqm space within half an hour.
Mr Moore said interstate buyers and investors continue to drive demand across Queensland, with the share of loans going to investors in the state at near record highs.
“To some extent, people coming from Sydney, potentially with more wealth or more income behind them, can make it harder for locals,” he said.
Regional Queensland houses jumped $97,100 in 12 months to $803,000, while units surged even higher up $100,300 to $782,000. Other centres also posted strong results, with Darling Downs-Maranoa up 17.6 per cent to $529,000 and Toowoomba up 16.8 per cent to $771,000.
Cairns’ performance sits within a broader Queensland boom, with Ipswich and Logan emerging as Australia’s strongest property markets outside Western Australia. Ipswich led the east coast with 17.8 per cent annual growth to $860,000, while Logan-Beaudesert recorded 17.3 per cent growth to $897,000.
The Gold Coast has become Australia’s second most expensive property market at $1.15 million, surpassing every state and territory capital except Sydney, while Townsville surged 15.6 per cent to $605,000.
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