Cairns. where to buy ??.

[pango]

Hi there,
What would be the best suburbs to buy in Cairns at present. I am seeing many properties listed at what must be below replacement cost. Does anyone think that the market in Cairns will realise its true value in the near future, and if so, what will be the drivers for this shift.
I read recently that there was 17% growth over the past year, however I think this was only the case for the medium home price and not reflective of the whole Cairns market.

Any thoughts ??

 

[Watermelon Man]

Hi there,
What would be the best suburbs to buy in Cairns at present. I am seeing many properties listed at what must be below replacement cost. Does anyone think that the market in Cairns will realise its true value in the near future, and if so, what will be the drivers for this shift.
I read recently that there was 17% growth over the past year, however I think this was only the case for the medium home price and not reflective of the whole Cairns market.

Any thoughts ??

Depending on whether you want to go north, central or south; but my picks for central are the traditional blue-chip areas like Whitfield, Edge Hill, Freshwater, Stratford, Parramatta Park which are always highly sought-after; as well as other emerging suburbs like Redlynch, Brinsmead, City View/Kanimbla Heights.

I personally see the market in Cairns still powering on for at least the next 2-3 years; then after that we'll probably see a correction or downward price spiral (at that point; Cairns would have experienced around 6-7 years of growth).

I disagree with you about most properties being listed for sale at below replacement cost; as most properties today are listed quite high.

Cheers!

 

[Harris]

Hi there,
What would be the best suburbs to buy in Cairns at present. I am seeing many properties listed at what must be below replacement cost. Does anyone think that the market in Cairns will realise its true value in the near future, and if so, what will be the drivers for this shift.
I read recently that there was 17% growth over the past year, however I think this was only the case for the medium home price and not reflective of the whole Cairns market.

Any thoughts ??

I am really surprised at your assessment on Cairns market. I would love to know where those prop are in Cairns that you believe are below "replacement value:.

I purchased in Cairns in 2003 and had average gains of over 220% since then (by bank valuation). The market has been in over drive since 2003.

The rental yields have come down from an average of 8-9% in 2003 to around 4% (for the prop I looked at recently).

My understanding is that the market there would be sitting at close to being at the peak.

Harris

 

[chrispy]

I was there 10 days ago and spoke to Chris Gay, REIQ Cairns Chairman. He advised that the market has been climbing for close to 6 years now and he believes there is still more growth to come.

I would really like to know where the properties are that are below replacement cost. I have been searching for land for close on two years in a certain area only to discover it is now close to double what it was 2 years ago!!!

I agree Edge Hill, Whitfield, etc are great areas to live in as are the northern beaches.

Chris

 

[Denne]

I don't think growth will ever slow down in Cairns. People are moving up here in droves - maybe due to the warmer weather and no worries about water supply. Personally, I think properties in Whitfield and Edge Hill areas are overpriced, and the northern beaches are too full of tourists .

I like the southern suburbs best - Mount Sheridan, Bentley Park, Edmonton - great views of the mountains and hills, almost a separate town. In fact, once the new Edmonton business centre is built, there will be no need to go into the city centre at all unless you work there. The amount of development going on in the southern corridor is phenomenal - won't be long now before Cairns is completely joined up to Gordonvale.

 

[Watermelon Man]

I don't think growth will ever slow down in Cairns. People are moving up here in droves - maybe due to the warmer weather and no worries about water supply. Personally, I think properties in Whitfield and Edge Hill areas are overpriced, and the northern beaches are too full of tourists .

Almost everywhere in Cairns is highly priced; even the southside - I mean most 3-4 brm houses are fetching $380k+ now - Gordonvale is that price now!!! Like anything; the good-priced property is around; but you have to scan the market with a fine-tooth comb & be prepared to act FAST!

 

[pango]

I apreciate that there has been goood growth in some suburbs, in particular the southern ones close to town, but there is certainly less growth in the northern beaches from what I can see.
There is a house that is on the market for 550k. It is 200m from the beach, in a very nice street.
To my mind, the 850m block would have to be in the 250-300k range if it were vacant, and the 4b+2bath home with large pool, spa and sauna would have to come in at more than 300k to build. Add the landscaping and additionals you get when building .???
I have recently witnessed a friend purchase a block in Redlynch Rise at 185k. His build with pool was estimated at 330k. Add the stamp/fees and usuals after construction and you would need to get 550k plus to break even.
From what ive seen, you could get into that area in a very nice home for less than that and save yourself the building grief.
Thats what I based my previous comments on, but be aware that I have only been in Cairns for 1 year and I am still learning, however, I have built 2 houses before and understand what is involved, particularly the after costs.

 

[CairnsAgent]

Below replacement cost.....mmmm NO!
I work in real estate in Cairns and if you can even show me 1 property for sale for below replacement cost....please do, I'll buy it today.
Cairns is smack bang in the middle of a huge growth stage, both in house prices and dwellings under construction and there is no short term end in sight, Cairns council currently have over 700 new development applications in front of them, they are approving almost 50 DA's a month and still cant get to the end of it!

cheers

 

[bernly]

I agree Edge Hill, Whitfield, etc are great areas to live in as are the northern beaches.

Chris

I'd agree with that. Definitely central or north for me! The thing with Cairns is that there are very definite "good" and "less desireable" areas within suburbs and, in fact, within very short distances of each other. I've found it best to do the legwork and get the "feel" before buying anything.

Cheers

 

[CairnsAgent]

Bernly has hit it on the head.
You need to do some leg work, get to know whats what and why it's what!
Feel free to drop me a line if I can help out.
But as with all property buys do what is right for your circumstances.

Cheers,