In July 2009 our thoughts were that a $500,000 property investment in Cairns would secure a well located modern executive style dwelling typically renting for $430 to $450 per week. Alternatively the same amount would purchase an above average quality unit in the Cairns CBD, located on the middle levels of a new high rise unit development.

Since July 2009 the Cairns market has experienced little change and $500,000 would have exactly the same purchasing power in today’s market as it did twelve months ago. Indeed the investor at this price level would find a large range of sectors, styles and locations available to choose from – there would be something for everyone.

The $500,000 mark in the Cairns market is relative to the current median price level of around $360,000 for an established house and $340,000 for a new unit. With the Cairns still at the bottom of the residential property cycle, investors will need to be prepared to hold for the long term and pay close attention to rental vacancy rates and rental returns in the meantime.

Source: Herron Todd White