Real Estate
27 November, 2025
New magic number
CAIRNS is remaining one of the best-performing property markets in Australia, with house prices up 16% year-on-year to a median of $752,000, and units up 13% to $421,000, according to the Cairns Chamber of Commerce’s Cairns Economic Monitor.
The report, prepared by Pete Faulkner of Conus Business Consultancy Services, also showed vacancy rates still critically low at 0.8%, maintaining upward pressure on both rents and property prices.
“There appears to be no slowing in the pace of price rises in the Cairns real estate market,” the report said.
“After some apparent reluctance to breach the $700,000 (houses) and $400,000 (units) price barriers a few months ago, prices have moved ahead firmly this quarter and are now up between 13-16% for the year,” it said.
“With the trajectory of interest rates likely to be lower still in the next six-nine months, there would appear to be plenty of reason to continue to see prices move higher. Although rents are rising at a slower pace than prices (+4% for units and +9% for houses) now, it is still true that over the long-term rents in Cairns have out-paced prices by about 10% in the case of units but just 1% for houses.
“The shortage of rental properties is not a new phenomenon and it has certainly been a major factor in this disparate increase in unit rents over the past decade.
PVW Partners partner Michael Wilson said the city’s housing market had surged at a pace that seemed to far outstrip growth in local incomes.
“Just a few years ago, the median house price was around $376,000 at a time when the typical household earned roughly $85,000 per year,” he said.
“Today, the median house price is edging toward $750,000 – close to doubling in five years – while median incomes have risen far more modestly, particularly after adjusting for inflation.
“This doesn’t necessarily imply current prices are unsustainable, but it does highlight a growing divide in mortgage affordability that could reshape the local property landscape for years to come, unless price and income growth find a more balanced footing going forward.”
The report highlights continued momentum in local construction, with a solid 115 new house approvals in August.
While the previous month’s extraordinary addition of 468 affordable housing units in Woree temporarily boosted figures, the underlying trend remains positive.
“The strength in approvals is very welcome news for our community,” said Cairns Chamber of Commerce CEO Patricia O’Neill.
“It demonstrates confidence in the region and is a positive sign for easing housing shortages over time.”
The report said in November, although there had been no additional unit approvals, there was a healthy 115 approvals for houses and as a result the unadjusted trend had edged even higher (to 206) while the adjusted series shows a slight decline to 124.
“Whichever way we look at it, we are seeing a marked improvement in the number of building approvals, which will certainly be welcomed by all those for whom the accommodation shortage has been such a significant issue impacting the potential growth of the region,” the report said.
“Nevertheless, it will take some time for these elevated approvals to feed through into available housing on the market and in the meantime shortages will likely continue to be the dominant theme.”
