Cairns’ solid market foundation will help it weather a challenging 2019
As the Australian Real Estate Market edges into 2019 – it does so with a lot of uncertainty and in
some major, influential markets – a lot of negative press.
Loudly published market “corrections” of 10-12 per cent across Sydney and Melbourne must also be
balanced against the 100, 200 and 300 etc percent rises of the last 10-30 years. Only those persons
who may have borrowed too heavily against their asset’s value today would be mostly concerned.
Has the Cairns market been affected by the “woes” of down south and if so, will it continue to be
affected? The short answer, in tandem with Government changes to investment property
depreciation and claimable taxation allowances has drastically affected the investment sector
buying, however home ownership of the occupier remains quite steady.
With existing and heralded future uncertainties if there is a change in government how does an
auction marketing campaign assist the seller and to a point – the buyer?
When the much publicised “auction clearance” percentages fall, for sure as the sun rises every
morning, the “days on market” for private treaty (priced) sales will elongate.
In an uncertain or falling market the seller needs to get in front of the potential buyer market and
capture their interest from the very first day that their property is offered. This is achieved by either
an extremely sharp price, where the seller risks under-selling their asset, or via an auction marketing
campaign.
People have commented to me in the past that a falling market, in their opinion, is not the climate to
auction a property. My response has been – would you not like to find and set your property value at
or near the top of the curve instead of following it down over a number of months?
I believe Cairns’ market fundamentals remain solid; e.g. strong and slowly rising rental incomes,
extremely low vacancy percentages, balanced employment rates and an expected rise in population
growth. These elements will see Cairns ride out what will likely be a touch year again as a “steady”
market with a pick up late this year and into early 2020.
(as seen in the Cairns Post)
Sincerely,
Paul Stirling
Auctioneer
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