At the beginning of the year Cairns was touted as one of the property hot spots for 2016.
With major projects on the horizon, including new residential high-rises C3 Towers and Nova 8, the city’s first aquarium on Abbott St and Aquis still looming as a large contender, property experts were predicting a strong market in Cairns – but once again they were wrong.
Both house and unit price growth had slumped to unexpected figures in the past year, according to new Domain Group data.
Cairns’ median house price dropped 1.9 per cent to $407,000 over the March quarter.
Domain Group chief economist Dr. Andrew Wilson said the market has taken a hit.
“Prices have certainly tracked backwards and the regional market on a whole is struggling,
Cairns had the brightest outlook of all the regional markets but that has fizzled out and there is no doubt that it is a resource issue.”
The turnaround has been sharp for the region, with effects of the resource downturn finally catching up with the far north market.
Year on year the region’s market grew a slight 1.8%, despite far higher predictions and property values in Cairns only grew 10% in the past five years.
With few real growth drivers there is little reason for capital or rental growth in Cairns in the foreseeable future.
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