Cairns - Is the market surging?

[Janvid]

I recently bought in Cairns.

About a month after my purchase my agent in Cairns says he has been a Cairns agent for 12 years and he has never seen it like this before. Places are being snapped up before making it to the internet or in the local paper. He says that it is impossible to get a property like my recent purchase for the same price. And this is only a month. Has anyone else any similar information? Are any locals on the forum who wish to coment?

Cairns has an international airport and is the gateway to the upper great barrier reef and Port Douglas. Southern investors are apparently buying heavily. The prices did seem low to me, however, as a southerner, all Qld prices seem low.

 

[Lincoln]

I purchased in may.....it would be interesting to get a re evaluation!

I was supprised the other day when I saw some pretty hefty marketing for the new trinity Park Development here in Tokyo....It made me happy to see that Cairns has an International Perspective....

Although they mentioned 55 appartments and starting around the 500K mark....

I heard the land was purchased for 40mil...that would be 72K Land value per property.......Out of interest...and I suppose that they have to dredge the new chanel and make a lake....there will evenprobably be a mariner and shops....

Would this meen that when its all finished that Trinity Park would be a good investment.....maybe a 1000sq/mtr house close to the development....

Just a thought,

Cheers Lincoln

 

[Janvid]

Hi Lincoln

Any large investment in an area much be a good sign. We (no offence) are small investors and we still do our share of Due Dilligence. Big Money pays a lot for their research particulary given that the financiers require it before approving a project. Large developments do not get built unless research indicates growth and capital gain.

Can you give any more detail on the proposed project like who is backing it etc.

 

[Roz]

I am a local and from what I have heard there seems to be a buying and building frenzy going on up here. For example, a house worth $130,00 this time last year is now on the market for $193,00 at trinity beach. The agent said there are no properties available now under $200,000 this close to the beach. I also heard talking to locals that it is difficult to get hold of tradespeople because they are so busy. There is a lot of development and new building going on. To my knowledge, prices have only been going up for about the last 2 yrs (don't quote me on this) and before that house prices were going down. A block of land I bought about 5yrs ago for $80,000 droped down to about $60,000 and now it would be worth about $100,00.

 

[ChrisOs]

I can confirm Roz's comments (though I am not a local). I bought a townhouse about 5km out of Cairns about 6 years ago for $105K. About 18 months ago it was valued at $75K and is now worth around $120K - $125K.

Chris.

 

[Lincoln]

Okay Janvid,

When I was in cairns buying I new more, My mate sprays for dengue and know all the development in town....breeders or not.

The greens dont have a chance and the locals are all for capital gains in Trinity beach.

The Development or perhaps a section of it is named Vlue Lagoon. There will be 58 Villas and Appartments all with absolute lagoon frontage...hope they nuke the sand flies...
Sporting facilities near bye...golf coarse , marina etc.

theres not a marina there today...

80% finance available and starting from 537,500 aussy dollars..

Blue Water Properties PTY LTD
Towry Law group

e.mail: [email protected]

I havent done any other reaearch into it...just suprised to see and thought instantly buy residential in Trinity Park.....which for those who dont know the area also has beach front like the suburb of trinity beach...

Cheers,

Lincoln

 

[Lincoln]

spelling error

Thats blue lagoon

The Development or perhaps a section of it is named Vlue Lagoon. There will be 58 Villas and Appartments all with absolute lagoon frontage

 

[Lincoln]

The more I look the worse it gets.....


e.mail error too

its: [email protected]

have a look and see what they have to offer>

Cheers,

Lincoln

 

[Janvid]

Thanks for the information Lincoln.

I spoke to my business banker at the NAB (in Canberra) late yesterday (finishing off the finance on my latest purchase) and he said that he had heard (I presume from within the bank) that Cairns property was increasing in value at an ever increasing rate.

Good news for Cairns investors.

I have heard from several sources and now believe that the Cairns market is booming. The only question is for how long and at what rate of increase.

But, as with any market, time will prove me right or wrong.

 

[INVESTRON]

just sold an ip in cairns

in january this year all i could get was $115,000 in a quick sale

now in september i have just settled the sale for $155,000

maybe i could have got more if i waited - maybe not - will never know.

 

[Janvid]

Hi INVESTRON

That is a lot of gain in a short period of time. Were was the property and what were the yields?

And, why did you sell, is your strategy to buy and sell to reduce debt??

 

[INVESTRON]

it seems like a lot of gain but it has been a capital loss until now

i paid $155,000 for it in the last minor boom last century in 94

i will buy another ip in better condition this time.

 

[Janvid]

The Financial Review this morning has a story about commercial investments in Cairns. They say as a throw away line that

"there is an investment upturn in the residential market"

There is also a discussion about several large commercial projects including a new private University.