Unit market leads Cairns property price surge

Cairns home prices have shot up once again. Picture: BRENDAN RADKE

Cairns home prices have shot up more than 10 per cent in the past year with new data revealing units were leading the surge in price growth.

The latest PropTrack Home Price Index revealed Cairns home prices increased 2.23 per cent in the October quarter and 11.12 per cent in the past 12 months to a median of $613,000.

The median house price was up 2.02 per cent quarter-on-quarter and 10.02 per cent year-on-year to $689,000.

While unit prices surged 3.39 per cent in the last quarter and 15.59 per cent in the past year to a median of $414,000.

Ray White Cairns Beaches selling principal, Ray Murphy said activity had increased in the local property market, particularly in the past month.

“With the introduction of the Government’s Home Guarantee Scheme, there is certainly a lot more buyers entering the market, which is putting a lot more pressure on the market,” he said.

“We’re seeing multiple offers on properties after the first inspection.

“You’ve got to be quick.”

The home at 12 Bel-Air Drive, Whitfield, is for sale at offers over $2m. Picture: realestate.com.au

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Mr Murphy said the Cairns unit market in particular was experiencing strong interest.

“Although buyers often start looking for a house, when they realise the cost of houses versus units, they see they can get more bang for their buck with a unit,” he said.

“And some buyers are just priced out of the house market.

“We’re seeing a mix of owner occupiers and investors buying units, and a lot of first homebuyers.”

Mr Murphy said while Cairns was experiencing rapid property price growth, the region still offered good value, especially compared to Australia’s capital city markets.

“Cairns is still a great place to buy, a great place to live and the bang for your buck is certainly there,” he said.

Ray White Cairns Beaches selling principal, Ray Murphy. Photo: Supplied

“However, I don’t envision (the rise in property prices) changing anytime soon.

“There are no signs of the market slowing or the cost of building coming down.

“If you’re in a position to buy and you have the serviceability, I’d be encouraging you to enter the market.”

The HPI showed the regional Queensland median home price peaked at $764,000 in October, up 0.6 per cent month-on-month and 11.2 per cent, or $84,200, year-on-year.

Regional Queensland house prices rose 0.6 per cent last month and 10.9 per cent in the past year to $774,000, while unit prices increased 0.7 per cent month-on-month and 11.7 per cent, or $80,500, year-on-year to $744,000.

The PropTrack report showed national home prices were up 0.6 per cent in October to a new median of $858,000.

REA Group senior economist and report author Eleanor Creagh said this extended the upswing to a 10th straight month and lifted values 7.5 per cent higher than a year ago, the strongest annual pace since May 2024.

“Increased borrowing capacities, lower mortgage rates and improving sentiment are fuelling renewed competition, but the pattern of growth is shifting,” she said.

The property at 12 Kitava St, Trinity Beach is for sale at offers over $895,000. Picture: realestate.com.au

“Over the past year, Darwin, Hobart, Melbourne and Sydney have seen the fastest acceleration in annual gains with these previously softer markets regaining momentum.

“In contrast, the pace of annual growth is easing from earlier highs in Brisbane, Adelaide and

Perth, though prices are still at record levels and continue to rise briskly.

“All regional markets have slowed, except regional Victoria, narrowing regional market outperformance.”

Ms Creagh said nationally, annual growth had lifted above the 30-year average, yet stretched affordability is a handbrake on growth, which remains well below the 20-30 per cent pace of past booms.

“Looking ahead, this year’s series of rate cuts, population inflows and the expanded Home Guarantee Scheme will continue to bolster demand,” she said.

“With stock on market constrained and new supply challenged, conditions remain tilted toward sellers.

“The market appears set for further price gains throughout spring and into summer.”

PropTrack senior economist Eleanor Creagh. Photo: Supplied

In Brisbane, the median home price rose 0.9 per cent last month to a new peak of $976,000.

This was the second largest climbs of all markets in October behind Adelaide (1.2%).

Brisbane home prices were also up 12.6 per cent, or $112,700, annually – the largest dollar value rise of all markets.

House prices were up 0.9 per cent in October, to a median of $1.126m, lifting the annual increase to 11.1 per cent, or $117,400.

In the unit market, buyers are paying 0.9 per cent more month-on-month and 16.8 per cent, or $109,700, year-on-year, as the median unit price hits $770,000.

Elsewhere in Queensland, Townsville had the top performing market with home prices up 15.94 per cent in the past year to a median of $586,000.

This was followed by Mackay, where the median dwelling price shot up 15.5 per cent year-on-year in October to $587,000, and Darling Downs – Maranoa, where home prices increased 14.75 per cent to a median of $494,000.

Home prices on the Gold Coast, home prices were up 10.06 per cent in the past year to $1.107m, while in Cairns the median home price rose 11.12 per cent to $613,000.

OCTOBER PROPTRACK HOME PRICE INDEX

(SOURCE: PropTrack)

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