Shire home values resisting national slowdown

Home prices are remaining strong in Douglas Shire despite national property values falling last month for the first time in two years.

The average Port Douglas house price has stayed steady at $1,210,000 across the past two months and the average house value has risen by 13 per cent in the past year, according to realestate.com.au.

In Mossman the average house price is $460,000, slightly up from $450,000 the month before and a rise of more than 6 per cent on the same time last year.

The average unit price in Port Douglas is $425,000, a slight increase from $420,000, but a 2 per cent drop from the previous December. 

There have not been enough unit sales in Mossman to give an accurate reading in that category.

Port Douglas real estate agent Raine and Horne’s director David Cotton said he had noticed prices steadying out in past months, and several key factors would determine which way the market goes this year.

“Interest rates will determine a lot, but I reckon, probably in April, we should see a little bit of a kick again,” Mr Cotton said. 

But that may change if a date for the federal election, which is due in mid May but could be called earlier, is announced.

“As soon as an election is on the market slows right down,” he said.

“It’s bizarre, I don’t know why.

“After the election I would imagine we will probably see the market kick fairly strong.”

Mr Cotton said the Port Douglas market had “jumped dramatically” since the Covid-19 pandemic, with average house prices doubling in that period.

He said an influx of buyers from places such as Victoria, who were looking to invest or relocate, was one of the biggest price drivers.

And that had also affected the prices in areas such as Wonga Beach, Cooya Beach and Mossman. 

“There has been fantastic capital growth in those areas because people who can’t afford Port Douglas have started buying in other areas.

“It’s a chain reaction.”

Industry analyst CoreLogic’s Home Value Index ended last year down 0.1 per cent for December, the first drop in national home prices for two years.

This was on the back of strong growth from February 2023 to October 2024.

CoreLogic research director Tim Lawless said the decline was no surprise.

“This result represents the housing market catching up with the reality of market dynamics,” he said.

“Growth in housing values has been consistently weakening through the second half of the year.”

Five of Australia’s eight capital cities recorded a decline in values from July to December.

But regional housing markets finished the year on a stronger note, with values up 6 per cent across the year.