General News
25 March, 2026
What’s the big deal in Babinda?
FIRST home buyers are setting up home in more affordable suburbs such as Babinda and Fishery Falls, a new report reveals.
The Herron Todd White February market report for the Cairns region said the owner-occupier market performed strongly throughout 2025 and was expected to remain strong while multiple government-funded first homebuyers schemes were available.
“In some markets, government assistance has pushed home values above the eligibility threshold, undermining the scheme’s objectives,” said report author Danny Glasson.
“As a consequence, first homebuyers are moving into cheaper markets south of Cairns, such as Fishery Falls and Babinda, resulting in a spike in property prices in these localities,” he said.
More modest 2026
Mr Glasson said the Cairns market was expected to continue where it left off in 2025, with more modest gains in 2026.
“The relatively low cost to borrow money, a reasonably positive local economic outlook, perceived affordability compared to capital city markets and land supply constraints all combine to provide sound fundamentals for capital growth in most market sectors across the Far North Queensland region,” he said.
“In 2025, strong capital growth was observed across all market sectors in the region.
“Standout performers were lower value price points sub $700,000, particularly cheaper units in the Cairns suburbs and cheaper houses in the southern corridor suburbs between White Rock and Gordonvale.
“Land in the southern corridor was the top performer with some sales showing a doubling of values from initial purchases from estate developers in early 2024 to resales in late 2025.
“While capital values improved strongly in 2025, rental yields did not quite follow the same trend.
“Consequently, rental yields on residential investment properties have fallen in the Cairns region, particularly at lower price points.
“Lower investment yields have taken the heat out of the investment market, with some buyer’s agents reportedly now looking for higher yielding southern markets.
“Construction costs stabilised in 2025 and are expected to remain steady in 2026 as supply constraints dissipate post COVID.
“A continued shortfall of new home and unit construction relative to demand is likely, which may result in some upward pressure on prices in established markets.
Building costs rising
“Increasingly onerous environmental building construction standards may also result in rising building costs.
“The supply of new vacant land lots is expected to be relatively low with limited releases planned in 2026.
“The delay in providing development infrastructure in the southern corridor between Gordonvale and Bentley Park is expected to further tighten supply and consequent price rises in new estates appear likely. Interest rates and cost-of-living pressures are likely to influence the market in 2026.
“The interest rate cycle appears to have bottomed and forecasts suggest a steadying or slightly rising cycle over the coming 12 months.
“Inflationary pressures are showing signs of rising again after previously being thought to be easing.
“We caution that the likelihood of future rate rises may negatively impact the property market due to a significant increase in mortgage repayments and reduced borrowing power for both investors and owner-occupiers.”
Read More: Babinda