Cairns Economic Monitor - November 2025
Rates Hold, Inflation Rises - and Cairns Property Prices Surge Ahead of Incomes
The RBA has held the cash rate at 3.6% in November, following a surprise rise in core inflation to 3.0% for the September quarter. This shift has prompted markets to push expectations for the next rate cut out to late 2026, reinforcing a more cautious monetary outlook.
At the same time, the housing market in Cairns continues to surge at a pace that far outstrips local income growth. Just five years ago, the median house price sat around $376,000, while typical household incomes were approximately $85,000. Today, median prices are edging toward $750,000, nearly doubling in that time, while incomes have risen far more modestly, especially when adjusted for inflation. This growing divide in mortgage affordability could reshape the region’s property landscape unless price and income growth find a more sustainable balance.
This edition explores what these economic signals mean for private business owners, investors, and families across Cairns and Far North Queensland.