When it comes to successful property investment, some of the most important elements are scarcity and natural beauty. Not surprising then to find one emerging city that has defied the trend to outperform many of the bigger city property markets.
That place is Cairns, and anyone that has been there will agree that it is truly paradise.
Tropical Rainforests, mountains and the Great Barrier Reef are the boundary fences, lush beaches and spectacular views are the every day canvas awaiting those lucky enough to call it home.
But this is no small, sleepy country town, no sir. Cairns has become a success story on the back of a willingness to commercially and sensitively exploit these natural advantages in a eco friendly way, whilst offering a truly unique lifestyle experience for the visitor and permanent resident alike.
Cairns is the 5th largest international airport in Australia, and carries even more domestic travellers, as it is considered one of the premium holiday destinations in the country.
This equates into a consistent economy fuelled mainly on eco friendly tourism and supplemented by the regions strong agricultural activity.
The one thing that I note most about Cairns is the fact that it is land locked amongst natural barriers, being the ocean to the East, Mountains and Forests to the West and protected National Parklands to the south.
What does this mean, simply put enhanced natural scarcity.
Combine the lure of the natural beauty with scarcity and it is a sure recipe for growth, and Cairns has delivered on this with average annual growth of 10.7% over the past year to September and 16.1% over the past 5 years (Source PRD Nationwide Consulting NQ).
For many investors, there is also the opportunity to be able to use their property for part of the year, as many homes and apartments are utilized in the booming tourism market for short stay tenants.
But if that doesn’t appeal to you, then a strong local community will provide you with a stable long term tenant if you wish.
Cairns also offers some of the highest rental yields in the country, so the holding costs of property there can be much lower than the major cities. This is one reason that it continues to catch the favour of investors from within Australia and internationally.
There is still great value in Cairns, with a wide variety of property types for all budgets and tastes.
A lovely house can cost anywhere from A$300,000, while apartments can be found from only A$230,000. With only 20% deposit required, that is affordable to all of us.
From homely to beachfront luxury, there is something for everyone, with the promise of consistent future growth as this once small country town, continues to mature into a premium property investment and tourism destination.
