Page 23 - Tropic Magazine Issue 18

TROPIC • REAL ESTATE

Crucial

contributor

RENTALS ARE KEY
First National Cairns Central’s
David Forrest highlights
the need to rethink our
perceptions of the Cairns
residential rental market.

The importance of the Cairns private
residential rental market to the local
economy is sometimes overlooked,
but it shouldn’t be. Economically and
socially the private residential rental
market is centrally important to the
greater population when you consider
35.7% of Cairns household tenure is
rental accommodation, according to
the most recent Census. This may or
may not surprise you, but it is higher
than the Australian average of 29.4%,
the Queensland average of 32.2% and
the Queensland Regional average David Forrest
at 31.4%. The rental or investment
market is a very significant part of our
economy and our lifestyle.
BIG INDUSTRY
Figures from the Census show that
19,415 properties are privately rented
in the Cairns region and show an
average rental of around $310 per
week. That equates to about a $313
million industry in rent collected and
about a $4 billion investment. These
figures are probably conservative as
rents have increased since the last
Census in 2016. There is of course a
huge variation in the type of housing
and the rents paid across the region. Dwelling styles vary greatly from and under 2% since 2016. This is
studios to prestige homes, so the range comforting for investors and hopefully
SOCIAL PERSPECTIVE is strong but some of the rental stock we will see renewed investment in the
With over a third of our housing needs upgrading and new property region.
needed for renters and almost all of needs to be added. Unfortunately,
that from the private sector, there building starts are below the long- GOOD MANAGEMENT
is a need to encourage continued term average and many investors The property management
investment. The property management are selling to owner-occupiers which industry deals with more than
industry also needs to be aware of the creates a reduction in rental stock. 20 different pieces of legislation,
needs of both tenants and investors. This will place downward pressure on and the industry has become very
Tenants need a variety of dwelling vacancy rates and may force rental demanding. This requires attention
styles and owners need regular returns returns upward. The general vacancy to detail and a strong knowledge of
at the very least. rate has been below 3% since 2011 all aspects of the industry, including
relevant legislative frameworks and
the ever-changing IT landscape.
MORE: If you’re a landlord, contact Renee Wijeratne and mention “TROPIC” to Importantly, we should never forget
find out more about First National Cairns Central’s high-quality services: the human side of managing people’s
0499 700 985 or [email protected] homes and investments.

23 • tropicnow.com.au