Conditions ideal for unit buyers

THE last decade of the local real estate market could be summarised thus: four years of growth and a sellers’ market, with six years of a buyers’ market.

Cairns is in a holding pattern at the moment, waiting for something to happen. Government stimulus is restrained by money and private developments need a bit more confidence to start construction. While prices of current properties for sale are lower than the cost to build, residential land sales are still ticking over as people would still rather build and live in a new home.

Cairns is in a holding pattern at the moment, waiting for something to happen

Investment from Papua New Guinea and other nearby countries has also helped new home and land sales. Some well-established builders have ventured into building spec homes in areas such as Kanimbla and Redlynch and are having remarkable success; again, they are offering brand new homes in sought-after locations at competitive prices as an alternative.

Construction of unit complexes is almost non-existent, as the single cost of a new unit could hardly compare to the cost of an established one at the moment. Hopefully, construction of new units could be some time away while existing ones are so cheap. Surprisingly, investors are not coming into the market in numbers yet, but this can’t be too far away with such ideal buying conditions.

Greg Moule, principal, Cairns Property Office Homes reviewed in sections of this guide are selected from properties advertised for sale.