A new report has revealed the residential property market in Port Douglas is performing better than expected, with increased buyer demand, faster sales and buoyant prices all contributing to a positive outlook for the local market.

The report by property valuation and analysis firm Herron Todd White also noted increased activity in the high-end segment of the market, including a number of sales in the $1 million to $2 million-plus range.

According to Herron Todd White analyst Rick Carr, the increase in unit prices has been more noticeable for residential rather than holiday let apartments.

“The residential property market in Port Douglas is continuing to regain momentum with stronger buyer demand evident over the last three years,” Mr Carr said.

“Most segments are no longer buyers markets and have been moving towards equilibrium between buyers and sellers.

“Properties are selling faster, stock is depleting and previously unsaleable stock is starting to move.”

Dave Cotton from Raine and Horne agreed with the Herron Todd White assessment, noting the steady increase in house prices reflected a positive long-term outlook for investment in Douglas real estate.

“Our market is slowly starting to move and we’ve got examples where some properties we’ve had on the market for five years have now finally sold and they’re not reducing their prices - the market has finally agreed to the price the vendor put their property on the market for,” Mr Cotton Said.

“The housing market is fairly tight at the moment with the average house at around $540,000 and there aren’t many of those on the market so that means they’ll sell fairly quickly.

“Going forward we will definitely see an issue with enough stock coming on to the market but we won’t see anything like what’s happened in Sydney or Melbourne where they’ve had massive rises in the prices.

“Up here you will see slow, steady growth so it’s a nice way to invest in property because unlike those capital cities where you get massive spikes and then a downturn here I can’t see a downturn in this market over the long-term.”

Michael Samson from LJ Hooker also said his experience on the ground reflected the Herron Todd White findings.

“We’ve seen the number of days on market drop significantly over the last couple of years and well-priced properties are getting inquiries, inspections and then sales in good time,” Mr Samson said.

“The residential housing market is strong and it’s great to see units and townhouses back in favour with increasing numbers of those selling over the past six months or so.

“We’ve had some low vacancy rates for rentals so that always means you’ll get better rental returns and more interest from buyers and investors.

“We’ve got a good balance between buyers and sellers and all the indicators I can see are positive for the Douglas market.”