Cairns Rental Market

[outbackjack]

As some may know I was looking at buying a place in Cairns, but was knocked back and had to mark time for a few months.

So I decided to rent in Cairns for the time being.

The rental market has gone up 50 to 100 dollars for propeties. I asked a real estate agent why and he has told me that this was directly related to Cyclone Yasi and the market was up and up as people in Tully etc were looking for somewhere to live.

Although I am investor I think this sucks. If this is true, gouging rental prices becuase of a lot of peoples miss fortune is not a good thing. It appears there might be some truth as I have seen prices since mid December going up.

But I guess it gets back to supply and demand.

OK rant over

 

[Nards]

Hmmm...bout time it went up I say! Given rents have been falling and vacancies have been high, (since the "GFC"), this is one little investor that is not happy with the recent Cairns rental market!

We have 2 Ips in Cairns and in the last couple of years thay have struggled - I have a 4 x 2 family home that has dropped in rent from $360/wk to $335/wk (and it was re-leased only 2 weeks ago, after having to drop the rent yet again to attract interest). We simply couldn't afford for the market to keep dropping as it has been.

I cant believe rents have gone up $50-$100/week?? Really? I will be interested to see the HTW report that comes out this month then. That certainly has not been our experience. Since tourism has been so poor post GFC, vacancies have been high, esp in the unit/apartment arena. The vacancy rate has been narrowing, but the rents have not picked up yet, in our experience.

Whilst I dont think any investor should deliberately put rents up ridiculously following a natural disaster, I am a little excited to hear that there is some possiblity that the demand for rentals is going to improve, because we are struggling to hold in a city that has had falling rents and no CG for the last couple of years.

At the end of the day it is supply and demand, and I suppose natural and financial disaster are just a couple of the things that drive the market.

Cheers,

Nadia

 

[outbackjack]

Yes I do think it is on the up, not sure if it is going to last.

Not sure where your house, but at the moment a 4 bedroom house for 325 is hard to find....

 

[outbackjack]

Just had another look today, I could be wrong and dont have access to any reports, but sure looks like the market has gone up in Cairns.

 

[Nards]

Hi Jack,

Here is the Feb "Month in Review" report from Herron Tod White, in case you are interested. Page 27 for Cairns. Vacancies are tightening slowly, which may (hopefully!) bring rents up a bit - if my 4 x 2 went up from the current $335/wk to 370/wk, it would be back at the rate it was when I bought it 2yrs ago.

http://www.htw.com.au/Downloads/Files/218-Month-In-Review-February-2011.pdf

Just had a quick look - found a few 4bedders under $320. Not sure what they are like "in the flesh" however

http://www.realestate.com.au/property-house-qld-kewarra+beach-405077942
http://www.realestate.com.au/property-house-qld-smithfield-405094643
http://www.realestate.com.au/property-house-qld-holloways+beach-404531961

Good luck with your house hunting!!
Cheers,
Nadia

 

[chrispy]

I certainly haven't found that rents are going up.

My 3 bedroom fully renovated townhouse in Yorkeys was let at $320pw and had to be lowered down to $250pw to let it. I no longer can be fussy as to who the tenant is.

I hope the market is improving because it has been atrocious

Chris