Today, we’re diving deep into the unique dynamics of the real estate market in Cairns with Linda from Property Ladder. Linda stands as one of the most knowledgeable rental managers in Cairns, with over 25 years of unmatched experience in both traditional rentals and Airbnb.
Cairns Property Market: An Overview
The Cairns real estate market holds distinct characteristics, setting it apart from major city markets like Sydney. Often described as a “set and forget” market, Cairns represents a slow and steady approach, offering potential for passive income without the fast-paced capital growth seen in larger cities.
“Cairns generally is a set and forget market. It is your passive income—it’s the tortoise in the race.”
This slow-paced growth was evident as the market faced challenges post-GFC, with economic downturns impacting construction and causing a population decline. However, recovery has been steady over the past few years, surpassing previous high points from 2007 to 2008. Today, rental prices have reached unprecedented levels.
Current Market Landscape
The comparison of property values between Cairns and other regions highlights the appeal of Cairns as a more accessible entry point for property investment. For instance, a comparable four-bedroom home in Western Australia might cost $600,000, while in Cairns, you’d be looking at about half that for similar properties.
Market Availability
Linda uses realestate.com.au to track the availability of properties in Cairns, offering insights into the rental and sales market dynamics. Currently, about 300 rental properties are up for grabs, ranging from shared accommodations to executive homes. This is contrasted against a population nearing 170,000, indicating a tight rental market.
Airbnb and Traditional Rentals in Cairns
Airbnbs in Cairns are primarily located within the city or close to beaches, catering to visitors who prefer proximity to city amenities without the need for a car.
Rental Property Analysis
The rental landscape varies, with two-bedroom apartments in areas like Menunda escalating from $250 weekly a few years ago to about $420 now. Similarly, one-bedroom units now fetch around $350, reflecting a significant price increase across the board.
Demographic Shifts and Rental Strategies
Economic pressures and rising rental costs are altering traditional living arrangements. Where young adults once left the family home to rent solo, financial challenges now often necessitate shared living with roommates or extended family to offset living expenses.
Young Buyers
Linda suggests young individuals entering the property market to reconsider their expectations, focusing on achievable goals rather than ideal homes. The emphasis is on entering the real estate market, even with modest investments, to leverage future capital growth and rental income.
“My advice to someone that’s young is to adjust what you can get. It’s better to be in the market than renting because you don’t know the cost increases there.”
Investment Opportunities: What to Consider in Cairns
Investors should assess their strategy when navigating the Cairns market. Options range from duplexes and strata units to more flexible Airbnb setups, each presenting unique benefits based on individual investment goals.
Strata Units and Duplexes
Linda highlights the benefits of strata units—optimal for spreading costs and offering flexibility if lifestyle changes occur. She emphasizes the significance of a well-managed body corporate to ensure long-term viability and stability.
Investment Strategies
Investment strategies vary, with some investors seeking higher income at increased risk through Airbnb, while others prefer a stable, long-term investment like a one-bedroom unit.
Suburban Insights
Historically less favored suburbs, like Menunda and White Rock, are experiencing transformations due to strategic real estate developments and changing demographics. Linda notes these areas now present viable investment opportunities.
Real Estate Development and Growth
Government-driven social housing projects in the 1980s laid the groundwork for today’s diverse real estate landscape. Suburbs that once carried certain stigmas are now changing, thanks to consistent investments and new developments.
Future Opportunities in Cairns Real Estate
As the Cairns market continues to evolve, strategic acquisitions in well-positioned and well-managed properties offer opportunities for both new and seasoned investors.
With housing demand rising against limited supply, particularly within five kilometers of the Cairns city center, selecting properties with high rental demand and growth potential remains key.
Conclusion
Cairns’ real estate market in 2025 offers a unique blend of challenges and opportunities. With its steady growth, changing demographics, and evolving landscape, investors and potential homeowners must remain informed and adaptable. Through strategic investments and realistic expectations, the Cairns property market can serve as a rewarding venture for those ready to embrace its distinctive pace and opportunities.
