The Cairns economy continues to slowly advance. Tourism and employment indicators remain at encouraging levels, while construction activity now looks to be rising slightly from its low base. However the property market has remained fragile, and has reverted to a Bottom of Market situation.
Our latest analysis shows that median property prices have increased, but our interpretation is that this increase is largely compositional, due to sales at the cheaper end of the market slowing in volume more than the mid to upper segments. Our view is that prices at the individual property level are at best holding and in some cases slightly reducing. Current median prices sit at $415,000 for a house, $230,000 for a unit, and $225,000 for a block of land.
N.B. The median property price is the actual sale price of the middle-priced property from the list of properties sold each month. Movements in median prices do not necessarily equate to movements in individual property values.
A softening in real estate market conditions has seen the median time taken for listed properties to reach a sale increase from 52 days for houses sold in the twelve months to May 2016 to 59 days for houses sold in the twelve months to February 2017. The median time taken to sell a unit has also increased, from 66 days for houses sold in the twelve months to May 2016 to 70 days for houses sold in the twelve months to February 2017.