Cairns house prices rise by $78,000 in just one year – realestate.com.au

House prices in Cairns have risen by more than $78,000 in the past year, more than the average salary and hitting a new record as a chronic shortage emerges.

The annual increase, reflected in the latest PropTrack Home Price Index, shows that homes posted the strongest dollar gains despite a relatively modest increase of 12.1 percent – ​​beaten by units that rose 18.47 percent, as investors and first-home buyers looked for more affordable entry points into the booming market.

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REA Group senior economist Eleanor Creagh.

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A two-bed unit at 608/44-62 Clifton Road, Clifton Beach, sold for $525,000 on February 27, 2026.

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Total home prices rose $77,503 to $647,663, while home prices rose $69,323 to $444,340 and homes reached $727,723, for an annual jump of $78,460.

This is evident from the latest PropTrack Home Price Index, which will be published on Monday.

REA Group senior economist Eleanor Creagh said it was possible that prices in Cairns and Townsville could peak this year, but there was still double-digit growth.

“It’s a normal part of the market cycle after years of consistently being among the top regions in the country for growth,” she said.

“Growth is moderating compared to previous momentum, but is still high. Cairns is still recording double-digit annual growth. Townsville is still going strong, with annual growth approaching 17 percent. In Cairns it is 14 percent. This is still very strong, especially in the context of national increases.”

Tom Quaid, chairman of the Real Estate Institute of Queensland Cairns, said a severe supply shortage was behind the increase, as emerging buyers from the south looked for investment opportunities cheaper than their capital cities.

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Tom Quaid of Quaid Real Estate is also chairman of the REIQ Cairns zone. Photo: Stewart McLean.

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This three-bedroom house at 5 Boland Street, Westcourt, sold for $700,000 on February 27, 2026.

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Mr Quaid said: “About $720,000 would buy you a nice executive home in most suburbs, or at least that would have been paid for before the COVID-19 crisis. Now you’re more likely to find an older four-bedroom, two-bathroom home in some of the newer suburbs, or if you’re looking closer to the CBD or in some of the more prime areas, that could be a three-bedroom, two-bathroom home that might need some work.”

First-home buyers were hardest hit by the shrinking choices within their budgets, he said.

“If you had a budget of $400,000 in 2020, that would still get you a three-bedroom, one- or two-bathroom house in many suburbs. Now $400,000 is a block of land or a unit,” Mr Quaid said.

“For a long time we were spoiled with the fact that you could skip a few steps and go straight to that shiny new house. Now a lot of people have to take a few steps and say that my first house probably won’t be my dream house.”

His biggest warning was for buyers who delayed entering the market hoping for a price correction.

“I’ve talked to people over and over again who thought things were too expensive and wanted to wait until it cooled down. Those same people now have to increase their budget by $100,000, $150,000,” Mr. Quaid said.

“When you’re in a position to buy, when you’ve found the right place, hesitation rarely pays off.”

Annual dollar increase by property type

Type Median Value Year-over-year change Annual increase in the dollar

All homes $647,663 13.59% $77,503

Houses $727,723 12.10% $78,460

Units $444,340 18.47% $69,323

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