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Recent analysis of the Cairns’ rental market has indicated unusually low rental vacancy rates, which could potentially increase rental prices in the area. In the August 2016 edition of Cairns Watch by Australia’s largest Independent Property Advisory group, Herron Todd White, Rental Vacancy Rates for both units and houses have tightened towards stress levels.
“The latest trend rental vacancy rate for July 2016 stood at 1.5% for houses and 2.0% for units. The market vacancy trend overall stood at 1.7%.” (source: Cairnswatch.com.au).
What does this mean for Cairns property investors?
With tourism returning to strong growth, house prices softening and rental vacancies at a low 1.5%; this is the perfect time to invest in property in the Cairns area. According to RealEstate.com.au, investors with a 3 bed house in Cairns North can expect around a 4.2% rental yield. If you then consider that Herron Todd White believe Cairns housing is a rising market and units are in the start of a recovery, then potential capital growth is also looking positive.
International tourism to Cairns and Tropical North Queensland is continuing to storm ahead, with 2015-2016 figures 13% up on the year before. Tropical North Queensland is the most preferred destination for tourists in Queensland, with over 800,000 visitors bringing in a total of $1.1 billion to the area over the last financial year.
Real Commercial recently highlighted how investors are being drawn in by Queensland’s tourism market, with Cairns and the Gold Coast outperforming the rest of the country.
The addition of the new Nova City launched a few weeks ago, the proposed Aquis Resort and investment into Palm Cove’s harbour are strong positive signals for the area.
Why choose Cairns Quality Homes?
We are an award winning premium house builder in Cairns with over 30 years’ experience. We have a range of turnkey house and land packages in prime Cairns locations. Everything from the carpets, tiles, window dressings, flyscreens, paths, driveway, fencing, lawn and landscaping is taken care of by an experience design team. So for a busy investor or an investor looking interstate, we provide a stress free solution.
A brand new property is not only convenient for you, but it’s also very attractive to tenants. They are willing to pay a premium for all the modern features, further helping your cashflow.
Naturally, all buyers should be cautious and seek specific financial advice to assess if an investment property is right for them.
For further information, why not get in touch to begin planning your next investment property.
