Cairns properties to sell

Gavin Roberts

Friday, August 15, 2008

There is an old saying: The only thing constant is change. In the case of real estate there are major changes at present.

The market woes are well documented, starting with the US sub-prime market and spreading throughout the world.

Markets have peaks and troughs over long periods and the long term (100 years) has been steadily upward.

However, the fundamentals today are different from difficult periods in the recent past.

Overseas speculators can quickly destroy stock values by short selling and modern technology makes this sort of manipulation much easier.

Powerful players are empowered with the latest information instantly and can make rapid decisions. Sell positions are set and a wave of selling can start quickly.

This can place short-term pressure on available credit and even substantial enterprises can have difficulties refinancing.

A major Australian shopping centre chain is a case in point.

These forces affect the local and international real estate markets as credit tightens and or interest rates increase.

This is the situation the Cairns real estate market is facing.

This means that properties that are not marketed at or near the correct selling price will not only not sell but there will be few or no inquiries.

On the other hand there are people who are willing to buy well-priced properties.

As we see it the local market facts are as follows:
- Now is an excellent time to buy - the market is subdued and therefore there is less competition from other buyers.
- We see the long-term future as good. Increases in rental values in southern capitals will be reflected in local rental rates.
- A slowing of building activity means supply will be affected.
- Migration to North Queensland continues so demand should be steady or increase.
- There are fewer inquiries from buyers but they are knowledgeable and there is a much higher conversion rate from inquiry to sale.
- Correctly priced properties should sell but the time frame is much longer than a year ago.

Gavin Roberts is from Quixell Real Estate.

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