Why the North Queensland property market prospers in winter

As the rest of Australia’s property market slows down during the cold winter months, North Queensland is literally warming up for the best time of the year.

“It’s 27 degrees, the sun is shining and the weather is absolute perfection,” laughs Ray White Cairns agent Angela Capitiano.

“This is one of the busiest times of year for us because everyone from down south comes up here to escape the cold and falls in love with the place.”

It’s not hard to see why. North Queensland provides a picturesque, pleasantly warm haven in winter, free from the choking humidity of summer. A glorious gateway to the Great Barrier Reef, it’s now cheap and easy to fly to from all over Australia.

Recently property analyst Simon Pressley from Propertyology named Cairns as one of the best places to invest in Australia, encouraging young Sydney buyers who have been priced out of the market to consider regional cities as an affordable option.

“Cities like Cairns and Townsville offer a wonderful tropical lifestyle and median house prices of $400,000 or less,” he says.

“Townsville has one of the most diverse economies in Australia and Cairns has very well priced property considering its local amenities.”

Ms Capitiano says there has been a noticeable trend emerge in the past year amongst buyers from Victoria and New South Wales, who split their time between Cairns and down south.

• Related: Cairns property with British royal links
• Related: What Brisbane’s median buys in the regions
• Related: Cashing in the heat: autumn property buys

“They’re not just holidaying here for a few weeks, they’re buying property here and living here for six months of the year,” she says.

“They spend six months here and six months down south and get the best of both summers.”

The latest Domain Group figures put Townsville’s median house price at $330,000, while Cairns’ median sits at $418,000, having risen by 4.5 per cent over the past year.

But it’s as an investment that Cairns in particular really shines – rental yields sit at 5.3 per cent for houses and a staggering 7.5 per cent for units.

So it’s not surprising that apartments are highest on the list of properties in demand, sought after for their easy maintenance as well as their excellent yields.

“Yes, there are body corporate fees to pay but you’re going to pay to maintain a house six months of the year anyway,” Ms Capitiano says.

“With an apartment, some of the owners will rent it out for six months to holidaymakers while they’re at home down south, then move back in when they come up during winter, while others will just leave it vacant when they’re not there.”

Entry-level apartments can be purchased in Cairns for as little as $200,000, although if you want something on the waterfront, you’ll be looking at closer to $300,000 to $400,000, she says.

“The entry-level apartments will be further from the beach or the city but to give everyone a bit of perspective, I’m still only talking 10 minutes out,” she says.

Ms Capitiano is selling a two-bedroom, two-bathroom apartment in Cairns’ only absolute waterfront apartment complex. Situated on the eighth floor, it’s a luxury residence with its own private lift and stunning views of the marina, mountains and Green Island. It’s listed at $1.35 million but Ms Capitiano insists it’s near the top end of the market, not the average.

“It’s an absolutely beautiful apartment but you don’t have to spend that much to get into this building,” she says.

“One-bedroom apartments sell in the $300,000s and they’re also right on the water. It’s an irreplaceable location.”