Page 22 - Tropic Magazine Issue 15

INDUSTRY • REAL ESTATE

Steady, steady

Tropic talks to local agents about their views on the
Cairns property market outlook for 2019. Nickoli Obersky
One Stop Property
DEMAND OUTSTRIPPING SUPPLY
In my view, 2019 will see continuing
positive direction in the key market
drivers such as population growth,
employment opportunity and our
affordability. These factors are just
outstanding for a regional city that
is exceeding similar-sized locations
across Australia.
Our local market has been shielded by
below average rates of new homes and
units construction starts, so there is no
oversupply. This is also why we continue
to have such a restricted and tight
rental market. This tightening market
will only continue so we will see steady
price growth and increasing activity as
demand is above supply. Properties that
Nicholas Slatyer Troy McGuane and Karl Latham are well-presented, expertly marketed
Belle Property Cairns Elite Real Estate Services and right priced will always drive market
growth and turnover quickly – this is
GOOD SIGNS MODERATE RISE AHEAD where we are right now. Action a-plenty!
2018 has served up more of the The combination of low interest The New Year first quarter is
same for the Cairns property rates and a tight rental market traditionally the slowest of the year but
market, which I think we should will result in a rise in the median right now in the established market
be thankful for. No boom and house price in Cairns during 2019. the tail is wagging hard, so it could
bust cycle in sight and a balanced, Once completed, the inner city surprise everyone. This is all fuelled
predictable year ahead. developments will boost consumer by an exodus of “cashed out” investors
We have seen the top end of confidence and result in greater and lifestyle re-locators from a quickly
the market perform well which buyer activity which will incentivise declining Sydney and Melbourne
continues the pattern that began a home owners to place their property market. Investors have now clicked
couple of years ago. on the market to capitalise from this over to chasing rental returns and
As for 2019... we’ve got low increased buyer competition. Cairns serviceability with continuing capital
unemployment, a rejuvenated will see a moderate rise in house growth outlook and for the owner
Cairns city and a strong tourism prices and total sales numbers, occupier we are so attractively cheap.
environment, all of which will help however there are no signs of a Cairns remains an extremely attractive
maintain a slow and steady upward “booming” market in Cairns. value proposition with continuing
trend for our property market. positivity in the baseline key indicators.

VIEW FROM AFAR
You should have confidence in the Cairns real estate market as the underlying
fundamentals are solid and there’s a good pipeline of job creation. On a national
level, the downward trajectory of housing finance approvals is a much deeper
issue than falling property prices in Sydney and Melbourne. The property boom
barely got outside of those two capital cities, yet the entire nation was subjected
to the changes by the banking regulator Australian Prudential Regulation
Authority (APRA). Other states would actually benefit from stimulus, not
Simon Pressley tightening. I would suggest that the single most important task for our political
Propertyology leaders to address right now is to clip the wings of APRA.

22 • Tropic • Issue 15