Cairns Real Estate Overview
The combined RP Data.Rismark International National Property Indices report confirmed that Australian property values have demonstrated exceptional resilience to the global financial crisis with overall property values falling by only 2.6 per cent during the 2008 calendar year. Including rents, the total returns to residential property were actually positive in 2008.
A local bank panel valuer recently advised at a workshop that 2008 was an interesting year with prices falling between 5% and 10% in various sectors of the market, with an average of 8%.
In certain market segments we have noticed the market has fallen up to 20 per cent, however the majority of owners are well off due to the overall growth in the past five years as compared to the last fifteen year period in Cairns. There has been increased enquiry since the turn of 2009. Granted that the sellers will not be able to get 2007 prices in the Cairns region, however we will be able to sell your property!
Interest rates are again on the way down and will continue to do so over the 2009 year. It is a great time to buy with the holding costs being the lowest in the last 50 years. Some clients who were selling have recently withdrawn their properties from market, as it has now and will become more affordable in the near future to hold a property in a rental situation until the market recovers.
Unemployment has been raised as a concern however with unemployment at under 5% this has previously been regarded as unattainable and the situation may not appear to be as grim as it is being portrayed, if it was to rise to 8%.
The Australian market has a shortage of housing, with buyers waiting for better circumstances; lower interest rates or rising incomes to facilitate their entry to the market. This latent underlying demand for housing is a factor that will support the market. This is encouraging as it does differentiate us from the United States market.
However, while monetary policy is easing, without question the banks’ panel valuers are conservatively valuing properties. In some cases this has prevented contracts from proceeding due to the valuation price and bank lending value ratios.
Foreign investors are also looking to Cairns to purchase, being the third most popular city in Queensland for foreign purchasers. New Foreign Investment Reivew Board changes have relaxed conditions to stimulate further interest in our markets as of December 2008.
Please also read below what the Newspapers
have to say. |
