Home prices in Cairns have recorded a significant surge, increasing by more than $78,000 over the past year and surpassing the average salary amid a sharp shortage in supply.
According to the latest Home Price Index from PropTrack, house prices jumped by 12.1%, while unit prices climbed by 18.47% as buyers shifted toward more affordable options. The median price for all dwellings reached $647,663, with units priced at $444,340 and houses at $727,723, marking an annual increase of $78,460.
Eleanor Creagh, an economist at REA Group, indicated that prices in Cairns and Townsville are expected to reach their peak this year, despite continued double-digit growth driven by the natural property cycle.
She noted that while growth has slowed compared to previous periods, it remains strong, with annual growth currently sitting at 14% in Cairns and 17% in Townsville.
Meanwhile, Tom Quaid, president of the Real Estate Institute of Queensland in Cairns, said strong demand combined with limited supply has been the primary driver behind these increases, particularly as southern buyers search for more affordable investment opportunities.
He added that first-home buyers are facing growing challenges, with fewer suitable options available within their current budgets compared to previous years.
