Arnold
CibbuanoCanberra and Cairns Property Markets
July 25th 2006 00:24
The final city real estate performance match up, a battle between two of Australia’s smaller cities – Canberra versus Cairns.
The Cairns property market has gone troppo over the course of the data collection year with rentals and property values soaring above 10 per cent increased return in all but the house rental income. Nonetheless, housing rental incomes have boasted and an increase of 6% is not to be scoffed at. In recent months, there has been a correction and the huge gains have returned to moderate rates of return and unit prices have suffered a downturn.
Canberra has demonstrated steady consolidation and improvement in real estate returns during the year. The rental returns for units has markedly decreased which suggest an oversupply of apartment rental accommodation.
On the whole, over the short term three month period neither city has demonstrated brilliant real estate returns. Values for homes and units have increased modestly in Canberra. The value of homes and units in Cairns has actually dropped over the 12 month sample period. Cairns is coming off the back of a very big year of real estate increases so a recent correction in values is not unreasonable. Rentals in Canberra have flattened especially in the housing market where increases have steadied to demonstrate no appreciation over the December 2005 to March 2006 time period.
| % Change | Mar Quarter Median | ||
|---|---|---|---|
| Dec 05 – Mar 06 | Mar 05 – Mar 06 | ||
| House Price | 1.9 | 2.5 | $375,000 |
| House Rent | 0.0 | 3.3 | $310 pw |
| Unit Price | 4.2 | 3.3 | $301,000 |
| Unit Rent | 3.4 | 7.1 | $300 pw |
| Vacancy Rate | -1.0 | -0.5 | 1.8 |
| % Change | Mar Quarter Median | ||
|---|---|---|---|
| Dec 05 – Mar 06 | Mar 05 – Mar 06 | ||
| House Price | 4.9 | 13.2 | $300,000 |
| House Rent | 0.0 | 6.0 | $265 pw |
| Unit Price | -3.2 | 11.0 | $179,000 |
| Unit Rent | 5.3 | 14.3 | $200 pw |
| Vacancy Rate | n/a | n/a | n/a |
The Cairns property market has gone troppo over the course of the data collection year with rentals and property values soaring above 10 per cent increased return in all but the house rental income. Nonetheless, housing rental incomes have boasted and an increase of 6% is not to be scoffed at. In recent months, there has been a correction and the huge gains have returned to moderate rates of return and unit prices have suffered a downturn.
Canberra has demonstrated steady consolidation and improvement in real estate returns during the year. The rental returns for units has markedly decreased which suggest an oversupply of apartment rental accommodation.
On the whole, over the short term three month period neither city has demonstrated brilliant real estate returns. Values for homes and units have increased modestly in Canberra. The value of homes and units in Cairns has actually dropped over the 12 month sample period. Cairns is coming off the back of a very big year of real estate increases so a recent correction in values is not unreasonable. Rentals in Canberra have flattened especially in the housing market where increases have steadied to demonstrate no appreciation over the December 2005 to March 2006 time period.
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