A sleeping giant is about to emerge in Queensland’s north as developers look for new opportunities away from the capital cities.
According to Core Logical research analyst Cameron Kusher, popular holiday destinations including Cairns, Sunshine Coast, Gold Coast and northern New South Wales are experiencing solid capital growth gains thanks to ‘equity rich’ homeowners from Sydney and Melbourne looking for investment properties.
However investors will still need to do their homework in the region, with some suburbs more expensive than others to invest with Palm Cove reaching a median sale price of $645,000 for houses – by contrast the median house price of $406,100 for Cairns overall.
The suburb to watch is Kanimbla which has experienced a median house price rise of 16.7% over the past 12 months compared to Palm Cove’s 15.2%.
Investors other areas of the far north are beginning to enjoy outstanding gains with skyrocketing home equity levels. The Housing Equity Report late last month (March) revealed home equity levels in the Cook Shire reached 47%.
Property developer Stocklands is looking to realise its capital gains thanks to the growing market by offering Stocklands Cairns for sale for $230 million. The sale has gone to international tender which closed at the end of March.
This major regional shopping centre has 50,000 square metres of retail space.
One of the signs of renewed confidence in the northern city is the Cairns City Council approval of the $550 million C3 tower development.
The skyline-changing towers are to be built on Sheridan Street, opposite the city’s convention centre and will comprise a mix of residential and holiday accommodation as well as commercial and retail tenancies.
Further south, the Townsville market has also grown positive signs after period of dormancy with a record-breaking commercial property deal in February with a Sydney fund manager paying $53.5 million for the Australian Tax Office building in Townsville’s CBD.
The sale of the 14-level tower Stanley Street sets a Queensland record as the most expensive office building sold outside Brisbane.
According to newspaper reports, student accommodation is shaping up to be the next big development wave. Around the suburb of Douglas, close to James Cook University, student lets are offering strong rental returns.
Rasmussen, the south-west suburb of Townsville has also experienced a bumper start to the year with the city’s strongest growth in house values with a three month growth of 22.8%. The median price house in Rasmussen is now $355,000 compared with the city median of $342,000.