CAIRNS has proved itself a standout among the state posting one of the strongest returns for units in Queensland according to the recent Real Estate Institute of Queensland’s Queensland Market Monitor report.
Townsville, the Far North and Bundaberg recorded the strongest performance for the December 2018 quarter with gains of 15.9, 8.4 and 6.9 per cent.
In Cairns 218 units sold at a median price of $238,500.
The report authors commented that Cairns property prices were “relatively steady compared to a year ago”.
The Cairns median house price reduced 1.2 per cent over the year ending December to finish 2018 on $405,000.
Its unit market posted similar yearly results with its median price flat at $230,000.
“Over the December quarter, however, this sector was the second-best unit performer in the state,” the report read.
“The rental market continues to be tight, which has resulted in weekly rents increasing from $10 to about $45 per week over the past year depending on the dwelling type.
“Yields in Cairns are also very healthy, which means that the investment sector is enjoying good cash flow even if the capital growth equation continues to be mostly benign.
“Only time will tell if the most recent median unit price increases are a sign of more growth on the horizon.
“The volume of sales for both dwelling types is continuing to fall, however, the
number of unit listings has contracted over the past year.”
The most affordable suburbs for houses for the year ending December 2018 were White Rock ($287,500), Woree ($306,500) and Gordonvale ($310,000).
The most affordable suburbs for units for the year ending December 2018 were in Woree ($132,250), Bungalow ($150,000) and Edmonton ($150,000).
The quarterly median house price increased marginally over the December 2018 quarter, up 0.1 per cent to $400,500 — however it was an improvement on the previous quarter when the median reduced by 4.3 per cent.
The result is somewhat surprising given the volume of sales was down on the previous quarter.
In fact, the volume of sales in Cairns has reduced about 12 per cent over the year ending December 2018.
Caravonica, nestled at the foot of rainforest, posted Cairns’ best price growth over the year with its median house price increasing an impressive 26.3 per cent to $499,000 — a price uplift of more than $100,000 in 12 months.
Over the past year, the median days on market and median vendor discounts have remained relatively static.
A house in Cairns required about 56 days to achieve a sale with the median negotiated discount sitting at around 5.8 per cent.