Mar­ket up­turn

Port Douglas & Mossman Gazette - - BUSINESS - Shane Ni­chols

PORT Dou­glas house prices posted a strong three months to De­cem­ber, ac­cord­ing to the lat­est REIQ data.

It says the 11 house sales for the pe­riod pro­duced a 13 per cent rise in the me­dian house price to $463,500.

But the one-year change, up un­til De­cem­ber, is down by 6.3 per cent.

David Cot­ton, prin­ci­pal at Raine and Horne Port Dou­glas, said it was likely that sev­eral big ticket house sales had skewed the per­cent­age price growth, al­though the me­dian house price fig­ure sounded about right.

He said big in­di­vid­ual sales he knew of in that pe­riod in­cluded homes in the $1-2 mil­lion range. ‘‘That’s go­ing to throw your stats.’’

He said the mar­ket was def­i­nitely sta­ble now and there was likely to be slow but steady growth ahead.

‘‘ There’ll be less of the swings and busts of the past, people are a lot more cau­tious now. They have the re­sources to go on­line and do their own com­par­a­tive mar­ket anal­y­sis to tell them ex­actly how much a property went for, and when they’re buy­ing, buy­ers are a lot more in­formed than they used to be.’’

Mr Cot­ton said that when it came to units, ‘‘there were a lot of fire sales. People were get­ting out be­cause they couldn’t make the num­bers stack up. They were sick of pay­ing the ridicu­lous body cor­po­rate fees.’’

Strata ti­tle in­sur­ance pre­mi­ums have ex­ploded in re­cent years.

‘‘Prop­er­ties that were show­ing 7-8 per cent re­turns are now show­ing 1- 2 per cent re­turns.

‘‘But it de­pends what they want it for. If they’re not that wor­ried about re­turns it makes a great hol­i­day home.’’

LJ Hooker Port Dou­glas prin- cipal Michael Sam­son said the De­cem­ber quar­ter in Port Dou­glas was a very busy end for the year.

‘‘Buy­ers are still look­ing for value and are shop­ping around,’’ he said. ‘‘The good news was there were large num­bers of buy­ers look­ing to in­vest in the area, which cer­tainly as­sisted the growth fig­ures.

‘‘I do think buy­ers are still see­ing value in our mar­ket­place with prices and in­ter­est rates at an af­ford­able level, and the next few months will be very in­ter­est­ing to watch.

‘‘There are very good lo­cal signs mov­ing into the mid­dle part of 2014.’’

The me­dian house price in Cairns in­creased 1 per cent over the De­cem­ber quar­ter to $355,000.

The city’s me­dian house price grew by 2.9 per cent over the year. The pre­lim­i­nary num­bers of house sales were up about 14 per cent over the year.

Newspapers in English

Newspapers from Australia

© PressReader. All rights reserved.