Buying Property in Cairns or Townsville from Interstate?

Jennifer Smith
Aug 20
4 min read

Updated: Sep 17

Writer: Jennifer Smith

Buying property in Cairns or Townsville, North Queensland, from interstate, can be one of the most stressful and frustrating things you will do.

Why? Because things are a bit different up here.

This blog will look at two main facets of buying property in North Queensland that makes the process particularly challenging and stressful for interstate buyers.

Part 1 explores some of the nuances unique to regional North Queensland, and the selling agents' approaches, methods and practices commonly found when buying a property in Cairns and Townsville.
Part 2 will outline some key differences in the purchase, due diligence and conveyancing processes associated with buying a property in North Queensland from interstate.

Part 1: It's Different in Regional North Queensland

Cairns and Townsville property markets

The property markets in Cairns and Townsville, North Queensland, do not, and never have, behaved in the same way as Sydney or Melbourne. Instead, they have tended to be more volatile, and less predictable.

Cyclones and flooding: Severe weather can temporarily depress the market or delay property sales.
Industry changes: For example, the collapse of Townsville’s Nickel Refinery impacted local property values.
Boom and bust cycles: Extended periods of stagnation can suddenly shift into rapid growth.

Private Treaty vs Auctions

The regional location influences the way that many experienced real estate sales agents in North Queensland operate.

The auction culture is minimal compared to Sydney, Melbourne, or Brisbane.
Most properties are sold via private treaty, not public auction.
When auctions occur in Cairns and Townsville, they are often off-site, with multiple properties auctioned consecutively.

Pricing Strategies

Pricing strategies in Cairns and Townsville have historically been quite different from the well known under-quoting issues prevalent in Southern States.

In Queensland, there is little need for regulations around ‘under-quoting’. It is illegal for agents to give you any guide if a property is going for auction.
Where the market had been flat or going backwards for years, many properties would be listed above market expectations. They would sit on the market for months, sometimes even years, while time adjusted the vendor expectations down.

Multiple Offers

Experienced sales agents have had to adapt. Years of experience in flat markets has taught them to act strategically to achieve the best price.

Many agents became skilled at creating competitive multiple offer situations. Waiting patiently, watching, ready to move when the right time came.
When there was no other serious interest in a property, communication with sales agents would sometimes take place over an extended time period.
Interstate buyers from Melbourne and Sydney would often be surprised by the less frequent follow-ups, contrasting with southern states where sales agents would actively pursue buyers to ensure plenty of bidders for their auctions.

Buying Blind

In Queensland, it is technically illegal for sales agents to disclose what other buyers have offered in order for it to be fair and transparent.

The REIQ Multiple Offer Disclosure Form exists as a guideline; the idea being that buyers will be given one chance only and must therefore submit their best and highest offer, and they will not be given a chance to increase it.
Many buyers are effectively buying blind. In the absence of an established auction culture, where a buyer might win a property in a fully transparent auction process, if you are buying in Cairns or Townsville, you will likely be bidding against another bid you know nothing about.
Buyers must make strategic guesses about competitor interest and decide how to structure their offers without knowing what others are bidding.

Unicorns and Offers Over

After Covid lockdowns, the 'great escape' from Melbourne and Sydney saw a surge of people moving out for a tree or sea change. In Cairns, sales agents would quickly receive multiple offers on properties, often sight unseen.

They adopted WhatsApp video walkthroughs to send out to all prospective buyers, and properties would go straight under offer.
Agents would describe the rise of ‘Unicorn’ buyers, the rare offers that would exceed all expectations by a huge margin.
The pricing strategy became ‘offers over’ so that sales agent were not inadvertently putting a ceiling on the property prices and would continue to generate multiple offers.

Off-Market Listings

More recently, the Townsville property market has come under the National spotlight of investors. Its 'buy in' price, yields, infrastructure pipeline and government investment have made it an attractive prospect. Investors have flocked to the market.

Many sales agents have turned to technology to assist with fast turn-over.
There has been a significant move away from sales listings to off-market properties.
Many properties have been sold via email distribution lists, sight unseen, with multiple offers.
Some agents started using technology to conduct blind auctions.

Final Thoughts - Buying Property in Cairns or Townsville

Interstate buyers face a unique North Queensland property market shaped by regional events, agent expertise, and a different approach to what many southern buyers are used to. This is just one of the main aspects that make buying in North Queensland challenging.

Part 2 of this blog series will outline some key differences around the Queensland purchase and conveyancing processes, which interstate buyers also need to be aware of.

By understanding these dynamics and working with an experienced, independent and exclusive buyers agent, you can navigate the market confidently and buy the right property in Cairns or Townsville, North Queensland.

If you are looking for an exclusive Cairns Buyer's Agent or Townsville Buyer's Agent in Queensland, Australia, contact Jennifer at NQ Buyers Agent today.