$75,000 up: Cairns house prices rising at double the pace of Sydney – realestate.com.au

Property prices in Cairns rose by about $75,000 to $638,000 in just 12 months, growth double that of Sydney and the strongest unit price increase in Queensland at 19 per cent.

The 19 per cent growth per home significantly exceeded the overall housing growth of 13.2 per cent in Cairns, according to the latest PropTrack Home Price Index released on Monday and reflects strong demand for more affordable entry points into the market.

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An 81sqm one-bedroom apartment at 906/99 Esplanade, Cairns City, sold for $550,000.

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Unit counts rose to $442,000, while houses reached $715,000, as far north Queensland joined the statewide property boom, sending house prices in Greater Brisbane up by a record $148,900 in 12 months – double the average earnings of Queensland workers.

PropTrack economist Angus Moore said Cairns continued to benefit from lifestyle factors and relative affordability, although that advantage was waning.

“Cairns remains quite solid. And not radically different from what we see in Brisbane or in regional Queensland more broadly,” Mr Moore said.

“It’s relatively affordable, or at least it used to be, maybe less so these days, given how much prices have risen. And lifestyle factors are certainly relevant for buyers.”

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PropTrack economist Angus Moore.

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Mr Moore said Queensland had undergone a dramatic affordability transformation.

“Brisbane has become a lot less affordable than it used to be. Queensland is now the third least affordable state in Australia, after being one of the most affordable states to hit the pandemic,” he said.

“That really just reflects the fact that prices have doubled since the beginning of 2020.”

House prices in Greater Brisbane have risen 95.7 per cent in five years, while regional Queensland has risen 88 per cent.

Place Estate Agents Alex Rutherford said market conditions in Queensland were at a fever pitch.

“It’s ridiculous,” she said. “It’s getting out of hand. As soon as we list a property online, we get email inquiries within the first 30 seconds… Depending on the price, it can get a bit desperate. The fear of missing out is very high.”

Alex Rutherford of Place Estate Agents.

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She said one-bedroom apartments are the most popular at the moment, given the tidal wave of the federal 5 per cent down payment program for properties under $1 million – with an inspection in Brisbane on Friday seeing 32 groups trying to squeeze through a 38 square meter space in half an hour.

Mr Moore said interstate buyers and investors continue to drive demand across Queensland, with the share of loans going to investors in the state at near record highs.

“To some extent, people coming from Sydney, possibly with more wealth or more income, can make things more difficult for locals,” he said.

Regional homes in Queensland rose by $97,100 in 12 months to $803,000, while units rose even higher by $100,300 to $782,000. Other centers also posted strong results, with Darling Downs-Maranoa up 17.6 per cent to $529,000 and Toowoomba up 16.8 per cent to $771,000.

Cairns’ performance comes within a broader boom in Queensland, with Ipswich and Logan emerging as Australia’s strongest property markets outside Western Australia. Ipswich led the East Coast with annual growth of 17.8 percent to $860,000, while Logan-Beaudesert posted growth of 17.3 percent to $897,000.

The Gold Coast has become Australia’s second most expensive property market at $1.15 million, surpassing every state and territory capital except Sydney, while Townsville rose 15.6 per cent to $605,000.