The Cairns real estate market in 2025 is expected to continue its trend of strong growth, driven by several key factors:
- Population Growth and Economic Development: Cairns has seen significant population growth and economic diversification over the past decade. The region’s population growth rate of around 2% per year is well above the national average. This growth is supported by developments in sectors such as tourism, agribusiness, construction, health, and manufacturing (Cougar Homes) (Queensland Property Experts).
- Property Prices and Market Demand: Property prices in Cairns have been on a consistent upward trajectory. The median house price has increased significantly, with an 8.5% rise over the last year and a more than 50% increase over the past five years. The demand for housing remains high, fueled by low vacancy rates and attractive rental yields (Cougar Homes) (Queensland Property Experts).
- Rental Market: Cairns boasts some of the highest rental yields in Australia, with certain suburbs like Bungalow achieving yields as high as 8.93%. The low vacancy rate, currently at 0.7%, further drives up rental prices, making the area very attractive for property investors (Mayfair Buyers Agent ) (InQueensland | Queensland News).
- Economic Projects and Infrastructure: Several major infrastructure projects are underway in Cairns, including expansions in tourism infrastructure, a significant federal government investment in a naval base, and developments in education and health sectors. These projects are expected to create more jobs and boost the local economy, which in turn supports the real estate market (Real Estate Institute of Queensland) (Queensland Property Experts).
- Future Projections: Looking ahead, the market is expected to remain competitive, with continued high demand and limited supply driving property prices up. While new developments may gradually balance the market, the overall outlook for Cairns remains positive, making it an attractive prospect for both investors and homebuyers (Cougar Homes) (Mayfair Buyers Agent ).
Overall, the Cairns real estate market in 2025 is poised for continued growth, supported by robust economic development, population growth, and significant infrastructure projects. Investors and homebuyers can expect a dynamic market with strong rental yields and increasing property values.