Real estate: Sun still shining on Far North property market

first_img Doom and gloom may be forecast for the country’s largest markets, but that doesn’t match up with the data in Cairns.NAB has forecast a 15 per cent drop in house prices for Sydney and Melbourne over the next 12 to 18 months, while ANZ is predicting a 13 per cent drop.Both banks estimate an average 10 per cent drop in house prices nationally, while the Commonwealth Bank’s worst-case scenario estimates house prices could drop a whopping 32 per cent. REIQ Far North Queensland zone chairman Tom Quaid said while confidence had been dented in the Cairns market, it was quite stable.However, there was a supply-and-demand issue, in that there’s not enough stock.“With the immediate economic impact of the COVID-19 restrictions and the threat of further lockdowns at one point, we saw a lot of owners either pull their properties from the market or put things on the backburner for a while and see what happened,” he said. “Some owners will look to get on the market and take advantage of this change in sentiment, though I would expect others to still write things off for a while and look at moving at a later stage,” he said.“If you were looking to upgrade to an executive home, you might now be a little more hesitant about taking on the greater mortgage, so decide to hold off. More from newsCairns home ticks popular internet search terms2 days agoTen auction results from ‘active’ weekend in Cairns2 days ago“We can hope that with destinations like Bali and Thailand off the table, more Australians will look to the Far North for their tropical getaway and that will help to fill the void, but we’ll be unlikely to get away without some pain,” he said.“Properties where the value was backed by high and previously consistent income from short-term accommodation will be affected, with owners needing to either factor in vacancy, transition to long-term rental or position as an owner-occupier prospect.” NEW VALUE OFFER: SUBSCRIBE FOR NEWS, HEADPHONES AND MORE! Doom and gloom may be forecast for the country’s largest markets, but that doesn’t match up with the data in Cairns.The Cairns property market may avoid a significant downturn despite grim predictions across the capital cities amid the coronavirus pandemic.House prices across Melbourne and Sydney face significant falls over the next 18 months, with the country’s biggest lenders warning a shrinking economy, falling consumer confidence and a drop in migration will weigh on the markets. While there have been forecasts of doom and gloom for the country’s largest markets, Mr Quaid said those predictions didn’t match up with the data in Cairns.“Places like Sydney and Melbourne have seen these big fluctuations fairly consistently over the past several years, going up 10-15 per cent in a year in some cases, and then pulling back when things get overheated or lending tightens up,” he said. However, Cairns still sits pretty well compared with much of Australia, with vacancy rates low even now and consistently strong gross yields for rental homes.“With interest rates now available below 3 per cent from a variety of lenders, property investors can still see positive returns, which should help keep interest flowing in that part of the market,” he said. “Conversely, if you were downsizing to an apartment, you might see this as a great time to get a premium for your house with little competition and then target something closer to the city.”Mr Quaid said Cairns was not immune to challenges and expected the region to see a sustained hit to employment, with tourism, as well as retail and other business, feeling the pinch without outside visitors. “In the meantime, there have still been people looking to purchase – people whose jobs haven’t been impacted, people with leases coming up that had already planned to make the move, people with changing family needs.”Mr Quaid said he expected things to look a little rosier in coming months, with more buyers returning to the market as restrictions were eased, but that would depend on the individual’s motivation. “Most of those owners in those cases have the equity to see out the waves. “Here in Cairns, we have seen pretty subdued growth in residential property, so that margin just doesn’t exist in many cases – quite often homes are still being sold for less than replacement cost, though they might still be sold at a profit compared to last purchase price.”last_img read more

Mark Cuban believes the NBA could return in May

first_imgIt has been almost a month without the NBA, and it is still not known when the season will return.Dallas Mavericks owner, Mark Cuban, said he believes the 2019-2020 NBA season could be back by May! “Hopefully by the middle of May, we’re starting to get back to normal and the NBA is playing games,” Cuban said, via WFAA’s Mike Leslie. “Maybe not with fans, but we’re playing it because sports plays such an important role. You know, people want something to cheer for, people want something to rally around, people want something to be excited about. “… I mean you know no one has perfect information right now, and so all decisions are tough. But, you know, if I had to guess based off the people I’ve talked to at the CDC and other places — I would say that the over-under would be June 1, and I’m taking the under.”Cuban says once scientist find a way to for the population to cope with the coronavirus, the league will “have a path out” of its hiatus.last_img read more