Has cairns, clifton beach, kewarra and port douglas etc gone mad like brisbane and the gold coast? If not is it only a matter of time? Property looks cheap up there and the yields seem ok.
Unsure how much growth has been had but rents are going up. Yields are great but insurance etc is high.
Yields are great because they take into account pre-Covid data of short term rentals - serviced apartmenst and airbnb, or sharehouses fully furnished, rented out by individual bedrooms. They can be good for cashflow, but know the capital growth is pretty stagnant.
But up to now its been stagnant over the last few years in brissy, gc, darwin and perth. Just wondering if anyone would expect to see growth in cairns area as per other regionals? Maybe its more impacted by tourism drop off? Too far away?
I don't even believe my own anecdote, so I went and had a look at the data. Cliffton Beach, from the middle of the decade 2015 to 2020 figures, the avg house price has risen from $555k to $640k. So I would say yeah - given Cairns has an international airport, those beachside suburbs to the north of it could be a decent buy - considering in any other capital city in Australia having a beachfront aspect under a million is a right bargain! Port Douglas, the same half decade time frame: 2015 $535k to 2020 $813k. There's signs of capital growth for the desireable beachside places. But I genuinely don't know how Covid has affected tourism in the vicinity and whether it's going to impact property prices in the medium-long term - due to population decline, rental vacancies and/or other aspects of it. I myself haven't visited these areas since the second half of 2018, and I came close to but didn't buy - tho at the time the yield promised to be fairly good (7-8% gross). If I did the numbers for Bungalow (non-glamourous suburban Cairns) and Inala (similar non-glam suburban Brissie), the capital growth figures look flat. Like barely keeping up with inflation flat. It was all on the yields cashflow and positive gearing.
Thanks onyx. We holidayed on clifton beach, kewarra a few years back. Great spot i thought and preferred to palm cove and port douglas. Could be a good punt if steer clear of flood zones. There was 1000sqm land on clifton beachfront for 900k only a few months back, seems like a bargain from down here in melbourne.
I love the area for a PPOR (and not bad for yield too) - and I think it's great value given the infrastructure in Cairns, but insurance is a killer, even when you shop around
A chain reaction is occurring on the Sunshine Coast and Gold Coast. Established families and long term locals are packing up from there and moving to more smaller coastal towns like Cairns. The locals in Sunshine Coast and Gold Coast are getting completely priced out of the market there and quite frankly sick of the new city locals so they are moving to more affordable areas and North Queensland presents with some great value for money.
