Region Rides a Wave of Sales Fuelled by Government Stimulus and Low Interest Rates
CAIRNS real estate has reached territory rarely seen in the past decade as the region rides a wave of sales fuelled by government stimulus and low interest rates.
The National Property Clock, released through Todd Herron White, shows Cairns has emerged as a Rising Market along with Gladstone, Mackay, Emerald and the Gold Coast.
Herron Todd White Researcher Rick Carr attributed the rocketing market to the federal government’s coronavirus building stimulus.
“Building approval figures are experiencing an upturn from the stimulus of the new HomeBuilder grants scheme introduced in June 2020,” Mr Carr wrote in the Cairns Watch report.
Building approvals were up 35.6 per cent between May and September.
“Approval levels are bound to accelerate even further while the HomeBuilder grants remain in place, backed up by the robust land sales activity.”
He said the rise in demand in the last quarter of 2020 had generated “rising pressure on prices especially for houses.”
The median house price has also inched north about 4.8 per cent.
“The latest trend median prices, for properties sold in the month of October 2020, came in at a new high of $431,000 for houses, and at $222,000 for units and $195,000 for vacant land,” Mr Carr wrote.
The residential construction sector has been hailed as one of the leading drivers for an economic recovery in the Far North during 2021