Cairns rental market slump

Hi all,

Anyone else have properties in Cairns? We have a couple and one of these has been vacant now for 2 and a half weeks (and been advertised for over a month)..longest period ever, and it is not looking good.

There is a multitude of properties currently available for rent (talking northern beaches, can comment on other parts), rents are tumbling, we have dropped ours $30/wk (from $370/wk) and still no interest, ads are popping up with "one weeks free rent", and nothing seems to be moving...

While the rest of Australia seems to be on the improve, Cairns has been seriously affected by the GFC, with a massive drop in international tourism, and, I presume, a departure of employees needing accommodation, as well as people taking advantage of the market and buying into their own properties.

So, all in all, not a pretty picture for landlords in Cairns. Anyone else in the same boat? Or other areas around the country experiencing similar?

Cheers, Nadia

I'm not in Cairns but am renting 2 properties there, one in Whitfield and one in Freshwater. I realize some places have been difficult to rent, but it hasn't affected me yet.

Other postings on this website have mentioned beach suburbs such as Yorkeys Knob having lots of vacancies. This isn't so surprising I think as Yorkeys seemed to have a lot of vacancies in the last apartment boom in the mid-90s.

There has been a building boom of late, but that seems to have slowed especially as some of the developers have bankrupted. I guess it will take a while for things to pick up again.

Regarding your own property, do you have any rules such as 'no pets' which might preclude some possible tenants.

Hi YG,

Nope, our IPS are pet friendly, 4 x 2 newish homes on easy care blocks, in what I would consider a "middle ring" price range...

Possibly it is only the northern beaches being so dramatically affected? There are more rental listings in Kewarra than I have ever seen. I just have my fingers crosses my other Cairns tenants want to stay on when their lease is up in Oct, or that things improve by then!

Cheers,
Nadia

Mine is renting fine I don't have an issue so is my parents in cairns but in saying that they haven't been vacant lately and there in good areas ie brinsmead.

hehe, yeah mine were renting fine til the tenants decided to vacate, my PM had been telling me the vacancy rates were high, but I had not noticed until now - when trying to find a tenant. As I mentioned, it may only be the northern beaches.

Cheers,
Nadia

I recently relet one of my duplex halves, took about a month but got the same rent we were getting previously (that was in westcourt) $240 a week
however about 6 months ago a tenant moved out in one of my other duplexes (gordonvale)and I dropped the rent from $240 to $200 to secure a tenant, that took a while also. Both my properties are pet friendly.

Nard

I previously posted about mine being vacant - Yorkeys Knob. I have now re-let it but it took 11 weeks and I had to drop $50 a week.

My agent tells me the problem is right across Cairns, as one vacancy is filled so two more become vacant.

The current unemployment rate is 15.8% so southerners are returning home to get jobs. Plus the various other problems that have occurred in Cairns over the last 6 months.

I believe it will be like this until later in the year when Jetstar start their new hub. Hopefully there will then be more flights in and out of Cairns and the employment opportunities will return.

Good luck - hope you don't have to wait too long for a tenant.

Chris

Its wierd I always thought cairns had everything going for it I reckon though as things get back to normal with the nice big new international airport cairns will be a boom town very very soon...

Kingchevy

I agree with you but this is not the first time this has happened. The Ansett demise, SARS, etc had a big impact on Cairns in the 90s. That was when I started buying in, properties in some areas were almost half price. One I purchased for $52,500 was originally purchased for $98k. Once the boom started these places took off like wildfire, I sold that one for $105k and it has since been resold for $150k.

It is a matter of waiting and the market will return, it is very dependant on tourists, once they return in droves we will see the return of decent rents. Lets hope its sooner rather than later.

Chris