?Cairns' reliance on tourism is a big factor in its relatively poor performance,? Conisbee said. And it's not just units ? the city is not a popular destination among holiday home buyers, she added. ?It is one area that hasn't benefited all that much from the shift to regional Australia.?

In 2026, the term "cheap" in Cairns is highly relative; while prices are significantly lower than in Sydney or Melbourne, the market has actually seen a 14% year-on-year increase recently. Historically, Cairns has been more affordable because it is a regional economy heavily dependent on tourism and hospitality cycles, which can be more volatile than the diversified economies of capital cities. Additionally, the city faces unique environmental costs, such as high insurance premiums due to cyclone and flood risks, which can suppress base property prices. However, current 2026 data shows that a "supply crisis" is pushing prices upward, with vacancy rates sitting at a record low of 0.7%. While you can still find a lifestyle home for a fraction of a Sydney mortgage, the gap is closing as "lifestyle migration" from southern states brings more competition to this tropical gateway, making the "cheap" deals of the past increasingly hard to find.