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The team at Tropical Life have been seeing certain trends in the Cairns property market over the last 4 months. One of the trends we’ve seen in Cairns from our latest November market analysis is inventory levels have dropped significantly and supply has been contracting. What’s alarming to us is seeing the data suggest that Cairns  only has around one month’s worth of inventory based on the current listing volumes and new supply.

With this shortage of supply, our office is anticipating that the median house price will continue to grow because the demand is still high with days on market low and high absorption rates. 

This is the perfect recipe for price growth as we’re noticing in the market that new supply is significantly lagging behind as new construction is slow particularly, house and land packages.

Developers and builders have been scrambling pushing out some small or medium density supply around the fringes of the CBD.  However, that doesn’t appear to be taking the heat too much out of the marketplace.  Supply of existing stock is likely to remain low over the Christmas holidays and early on in the new year as many families put selling on hold and builders also take a break as well. 

Graph 1: Cairns Inventory at 1 month November 2022

We are expecting to see a small burst in supply early February but that will be met with  high demand as many buyers will also be active after the festive holidays.  What’s even more alarming is investors are now circling Cairns putting more downward pressure on supply and creating further competition for local home buyers.

Terry Rider recently shortlisted Cairns as an investment hotspot for 2023, as well as several other high-profile property commentors such as Investorkit, and Pk Gutpa. It’s going to be an interesting next 12 months for the Cairns property market. 

For the full supply and demand breakdown visit our Facebook page for our November property market update.

Director & Head of Research

Cairns Buyers Agent.

Troyson Bassani

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