The economic fundamentals in Cairns are continuing to gradually improve with extra jobs being created and inroads being made into the high rate of unemployment.

The economy remains on track for continued slow recovery over the coming months.

Cairns Property Prices

The Cairns property market is continuing to bounce along the bottom of the cycle, with sales rates slow and property prices generally flat to slightly declining.

The Cairns median house price trend stood at $358,000 in September 2010, down slightly on the $364,000 median house price recorded twelve months beforehand in September 2009.

Median prices in other sectors are showing high volatility on very thin volumes of trade, but their trend appears to be slightly down for units and dead flat for land.

Residential Units

The supply of new residential apartments available for sale in Cairns has progressively reduced this year due to the progressive absorption of existing developments and the almost complete absence of new construction.

Contrary to popular opinion, there has been no blow-out in the supply of units available in Cairns. Nevertheless with sales currently running at a rate of around only 180 per annum, there is still a ‘generous’ supply of units available at the present slow rate of consumption.

Tourist Apartments

The tourist apartment market in Cairns remains extremely tough, with current sales rates running at very low levels. We believe slow tourist apartment sales to be more reflective of a drying up of funds available for investment and the low returns being experienced, rather than buyers fundamentally reassessing tourism and its prospects in Cairns.

No new specialist tourist apartment projects have been brought to market for some time.

Source: Cairns Watch, Herron Todd White