Wednesday, February 5, 2014

Not The Cairns Post Property Report

Recent months have seen a flow in the Cairns Post of rather  bullish reports on the local property markets. The word "boom" has even been noted today. HTW provide the CairnsWatch report from Rick Carr and also a general monthly report from their offices around Australia: February 2014 Month in Review.

The wrap up here in the monthly review for the Cairns residential property section is actually quite a good measured summary so will take the liberty of a cut & paste:

The Cairns economy is progressively improving, aided by much stronger tourism seasons during 2012 and 2013, combined with the expectation of further growth during 2014. However improved business conditions do not yet seem to be feeding through to greatly improved labour market conditions, with total employment remaining soft and unemployment higher than the state average. We expect relatively subdued economic growth conditions in Cairns to prevail during 2014.
 
While the Cairns residential property market entered the start of recovery phase during 2013 and will continue to improve and consolidate during 2014, the economic drag will constrain the market’s recovery pace during the course of this year, compared to what might have otherwise occurred in better economic conditions. The tight rental market and low rates of new construction will maintain pressure in the market and provide further impetus to market activity.
 
A significant factor in the market recovery thus far has been the expected flow-on from the proposed $4.2 billion Aquis resort development, which if the project eventuates, will provide a massive stimulus to housing and development in the wider Cairns area. A delay to the proposed construction start date for the resort from mid 2014 to mid 2015 will take some immediate latent pressure off the Cairns market, but is unlikely to stall the recovery process seen thus far.
 
In our view there is sufficient market momentum in the Cairns market to sustain its recovery through 2014 without any added stimulus from the Aquis project commencement. If anything, a 2014 start to the Aquis project would have placed housing pressures on Cairns beyond its absorption capacity, and a delay to the project will provide some breathing space.

The bold is my emphasis as it's a good point which has been previously alluded to. A more balanced report today also in the Post related to 
this weeks building approvals although not sure some of the numbers look quite right?

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