Real Estate
27 July, 2022
Cairns Region Rental Rises Confirmed Among Highest
WEEKLY rentals have risen dramatically in the Cairns and surrounding regions over the past year, confirming what many renters already know.
Worldwide real estate advertising company REA Group Ltd’s latest ‘PropTrack’ report shows in the Cairns region – the most dramatic increase in 12 months has occurred in the suburb of Bentley Park, where the median rent for a unit is now $468 per week – a 41.67% increase.
Cairns is one of the country’s highest rental rise regions.
A unit in Mission Beach has jumped up to a median of $400pw, up 40.35%, while at Edge Hill, the median unit rental is $350, climbing 16.67% over a year.
House rentals Cairns City’s neighbouring areas, the Tablelands and Cassowary Coast have also risen significantly, for example in Tolga – where the median rent on a house is now $460, up 35.29%. At Kurrimine Beach a house rents (median) for $385 and at South Mission Beach, expect to pay around the $530pw mark – a 12 month rise of 19.1%.
According to the report regional areas across the country have been hardest hit, with a national median rental increase of 11.4 per cent – although the Cairns region rises have easily outstripped the national average. PropTrack Director of Economic Research and report author, Cameron Kusher, said: “Following heightened demand for rental properties from the start of the pandemic, competition in the rental market continued to heat up over the second quarter of 2022.
“Overall, the rental market is currently extremely tight, with many people looking for rental properties at a time in which the supply remains insufficient. It appears unlikely that relief is on the way any time soon,” he said.
“With overseas and interstate migration returning with borders now re-opened, it seems likely that rental conditions will tighten further over the coming months.
“While investor borrowing as a share of total lending is increasing, we’re still seeing a heightened volume of sales from investors and the re-opened borders are likely encouraging landlords to move their properties from the long-term to short-term rental markets, further reducing supply.
“The ultimate solution to the tightness of the rental market is more rental properties. Increased investor purchasing is addressing this, but it will take some time to ease the existing pressure.
“Federal and state governments continue to offer incentives to first-home buyers. With property prices falling and rents rising, this may encourage some to move from renting to ownership.
“Over time this may ease some of the rental supply pressures, but it is likely to mostly be offset by the return of arrivals from overseas, most of whom seek rental accommodation on arrival.”
