PROPERTY. Property Prices Median Sale Price (Log Scale) $450,000

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1 Property Prices Median Sale Price (Log Scale) $450,000 $320,000 $230,000 $165,000 Units Vacant Land Houses Herron Todd White does Property Valuations Herron Todd White Cairns has a wealth of experience in providing valuation services across the tourism, commercial, industrial, rural and residential property sectors. From residential units and townhouses to specialist valuations, acquisitions and resumption, Herron Todd White Cairns team of specialist staff provides valuations across all property types. $120,000 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 * All sales are classified to date of contract (not date of settlement) ** Recent months are provisional and subject to revision Source: HTW Analysis of RPData Median property price trends have remained steady for houses over the last six months, but have wobbled for units and land as a result of changes in their compositional mix. Our view is that most property prices are no more than plus or minus 5% different from what they were twelve months ago, and that their overall balance has remained static. The latest trend median prices, for properties sold in the month of June 2018, came in at $411,000 for a house, $206,000 for a unit, and $206,000 for a block of land. N.B. The median property price is the actual sale price of the middle-priced property from the list of properties sold each month. Movements in median prices do not necessarily equate to movements in individual property values. CairnsWatch July

2 Rental Vacancies Percentage Vacancy 8% Houses Units Total Herron Todd White does Tax Depreciation Schedules 6% 4% 2% 'Balanced ' Range Do you have an up-to-date tax depreciation schedule? You could be missing out on thousands of dollars each year in allowable depreciation for your investment property. Depreciation is an important part of maximising your investment returns from an income generating property. Contact us on for an obligation-free quote. 0% Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Dec-08 Dec-09 Dec-10 Dec-11 Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Source: HTW Rentroll Survey Though rental vacancy trends have crept up slightly over the last six months, rental vacancy rates remain low and continue to indicate tight verging on stressed market conditions. Our latest survey results show that the trend rental vacancy rates for June 2018 stood at 2.0% for houses, 1.8% for units and 1.9% overall. Coupled with the low level of new rental supply being created due to relatively low levels of new housing construction and reduced levels of investor housing activity, rental market conditions are expected to stay tight and/or stressed for some time. CairnsWatch July

3 Building Approvals Number of New Dwellings Approved in Cairns Urban Area 400 Houses Units Total (Trend) Herron Todd White does Rural Valuations Selling the farm? Herron Todd White has valuers specialising in agribusiness from cane farms to cattle properties and banana plantations May-14 Nov-14 May-15 Nov-15 May-16 Nov-16 May-17 Nov-17 May-18 Aug-14 Feb-15 Aug-15 Feb-16 Aug-16 Feb-17 Aug-17 Feb-18 Source: Derived from ABS data Building approval figures for new houses experienced a sudden jump during May 2018, which in conjunction with the April 2018 spike in unit approvals from the first component of the Nova City development, have led to a strong technical rise in the overall building approval trend, up by 47.9% over the period from May 2017 to May 2018 and 111.3% over the period from December 2017 to May Whilst it remains to be seen whether the heightened building approval trends will continue, especially for new houses, it is nevertheless pointing to a welcome pickup in construction activity in coming months. CairnsWatch July

4 Special Topic: House Sale Price Brackets % of Houses Sold 80% Under $350,000 $350,000-<$600,000 $600,000 or more 60% 40% Herron Todd White does Socio-Economic Research Herron Todd White Cairns carries out specialist project consulting assignments in all areas of socio-economic research, including demographic studies, statistical surveys, market research, strategy planning, cost benefit studies, and socio-economic impact assessment. Contact us today to discuss your requirements. 20% 0% Jun-15 Sep-15 Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Quarter Ended Source: HTW Analysis of RPData House sales within Cairns have undergone a dramatic change in their proportional market mix over the last six months. House sales in the midmarket category, priced from $350,000 to $600,000, have reduced as an overall percentage of sales, from 64% of the market in the quarter ended December 2017, to 56% in the quarter ended June Sales in the sub- $350,000 category have correspondingly increased from 25% of the market in the quarter ended December 2017 to 32% in the quarter ended June 2018, while sales in the upper category of $600,000 and above have risen from 11% to 13% of the market over the same period. The shift in the sales mix toward the respective market extremes could well be a sign of improved market confidence influencing first home and high end buyers alike. CairnsWatch July

5 National Property Clock Bathurst Echuca Hobart Newcastle NSW Central West Orange Sunshine Coast Coffs Harbour Melbourne NSW Central Coast NSW Mid Nth Coast Approaching Peak of Peak of Starting to Decline Bendigo Gold Coast South East NSW Herron Todd White does Townsville Information Herron Todd White produces a quarterly publication of Townsville Information entitled Townsville in Focus. Like CairnsWatch, it is free of charge. Adelaide Adelaide Hills Albury Ballarat Barossa Valley Brisbane Burnie-Devonport Canberra Dubbo Emerald Launceston Lismore Mildura Mount Gambier SA Iron Triangle Tamworth Rising Declining Sydney For further enquiries or to subscribe, contact townsville@htw.com.au or call (07) Cairns Gippsland Gladstone Hervey Bay Horsham Ipswich Mackay South West WA Townsville Warnnambool Whitsunday Steady State/ Start of Recovery Bottom of Approaching Bottom of Alice Springs Bundaberg Darwin Perth Rockhampton Toowoomba Entries coloured dark blue indicate positional change from last month Source: Residential Property Ratings Compiled by Herron Todd White, June 2018 Herron Todd White s National Property Clock is prepared each month based on the local market perceptions of its Australia-wide network of offices. Though real estate sales volumes are starting to pick up, especially at the market extremities as per our Special Topic analysis, the absence of any accompanying price growth means we still regard Cairns as being in a Steady State position. CairnsWatch July