Cairns real estate market to grow by 6 per cent to 2022
BUYERS are already speculating on a market rise as a new report reveals Cairns is in for growth over the next three years.
BIS Oxford Economics’ Residential Property Prospects 2019 to 2022 report, released today, showed a total rise of 6 per cent forecast for the Far North city.
The report put the modest growth down to the fact Cairns had not been affected by the highs and lows of the resource sector, unlike Townsville which should record a 9 per cent growth to 2022.
“Cairns has not been as exposed to the resource sector and has experienced moderate price growth in recent years,” the report read.
“This is expected to soften some of the upside to house prices.”
The Gold Coast and Sunshine Coast are forecast to record growth of 9 per cent and 7 per cent respectively.
Elite Real Estate Services’ Daniel Roser said the stable Cairns market was something to be thankful for and pointed out: “Though we haven’t experienced the huge highs of other markets we also haven’t had to endure huge declines in the market either.
“With interest rates being at an all time low and more importantly loan serviceability criteria loosening up it’s the best time to be buying a new home. That seems to be the general consensus in the market with a lot of younger families looking to upgrade.
“But there are mixed feelings about the market and whether it will rise or fall. With so much new infrastructure being built in the region most people are feeling positive.”
BIS Oxford Economics associate director and study author Angie Zigomanis said reductions in interest rates and easing in lending policy would stabilise residential markets in the latter half of 2019.
“Supply is running at record levels, with new dwelling completions having exceeded 200,000 in each of the past four years and expected to have peaked at a record of just under 227,000 dwellings in 2018/19,” he said.