Page 19 - Tropic Magazine Issue 31

TROPIC • REAL ESTATE

Remaining

red-hot

MARKET BOOM
Nadine Edwards from LJ
Hooker Cairns Edge Hill
discusses how growth in the
Cairns real estate market shows
no signs of easing.
2
No one predicted the year we have had
in real estate. The ‘fiscal cliff’ everyone
was preparing for at the end of 2020 Over 53 properties sold above the
never eventuated and instead the reverse $1-million mark in the first six months
occurred, creating an oversupply of of 2021. In comparison, there were about This growth has led to
buyers and very little sale stock to absorb 40 $1-million plus sales across the entire
the demand. 12-month period of 2019. more Cairns residential
Low borrowing costs, increased So when will this seller’s market end? properties joining the
household wealth, government incentives Most answers to this question mention
for housing and an overall fear of missing an increase in interest rates, currently at $1-million
out have driven owner-occupier, first record lows and helping to fuel home plus club
home buyers and investors to battle it out loan uptake. The Reserve Bank of
and push the property market forward. Australia will potentially increase the cash
Through supply and demand forces our rate when inflation rises. Economists
property prices have increased each from the big four banks all predict that
month since January. Sellers have enjoyed won’t occur until at least late 2022, given market include no significant unit
a seller’s market with most sales resulting subdued inflation and slow vaccination developments in recent years, most house
from multiple offer scenarios or highly progress. We are also experiencing a and land building approvals being for
competitive bidding at auctions. shortage of rental properties. The vacancy owner-occupiers (due to government
Buyers have had to endure six months of rate remains at less than 1% in what has stimulus packages), and a shortage of
healthy competition which has left some been described as a tenancy crisis. available building materials, leading to
feeling frustrated. Other forces impacting our property increased construction costs and delays.
Bullish economists are forecasting
property increases to continue well into
next year but others speculate that the
Cairns median rapid pace of house price growth can’t
house sale price be sustained beyond this year, citing
affordability pressures. Like at any point
in the property cycle, unfortunately, we
2019 $422K often only become aware of the end of a
phase once we are on the other side.
2020 $430K

MORE: cairnsedgehill.ljhooker.com.au
2021 $455K
1
1,2. 57 Flecker Street Whitfield was recently sold at
Source: Pricefinder auction by LJ Hooker Cairns Edge Hill for $950,000

19 • tropicnow.com.au