Cairns Economic Monitor - October 2025
Cairns’ building approvals spiked in July thanks to a one-off boost from affordable housing units in Woree. Even after adjusting for that, the trend is heading in the right direction; positive news for both the construction industry and easing the region’s housing shortage.
On the national front, interest rates remain on hold as inflation steadies within the RBA’s target range. A rate cut is now unlikely this year, but markets are tipping a reduction early in 2026, with the cash rate expected to settle around 3.1%.
Meanwhile, Cairns’ labour market, though still historically strong, is starting to soften. Unemployment has edged up to 4.8%, full-time roles have dipped, and participation has eased. The region remains resilient, but further weakening would be concerning.
- Construction – Big boost from Woree’s 468-unit affordable housing project, with approvals still 25% higher year-on-year.
- Tourism – International spend hits $1.21B, 11% above pre-COVID levels, led by US, UK & Japan visitors.
- Labour market – Unemployment edges up to 4.8%, but Cairns outperforms QLD in job vacancy resilience.
- Real estate – House (+13%) and unit (+12%) prices climb; rental vacancy just 0.7%.
This edition also features insights from Michael Wilson, sharing highlights from the recent Chamber luncheon where experts unpacked Cairns’ long-term growth strategy, and his comments explore how technology and autonomous transport could transform the city’s future.