Cairns recorded the largest increase in advertised rental rates for houses and units in the year to March of $15 a week, according to the latest CoreLogic Quarterly Regional Market Update, released today.

The cost of leasing a house in the tropical north Queensland city is 3.8 per cent more expensive than it was a year ago, while unit rents are more than five per cent dearer.

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Cairns was followed closely by the Gold Coast, where rents for houses rose 3.8 per cent.

CoreLogic senior research analyst Cameron Kusher said the rise in rents across the state was being driven by a reduction in housing supply and increased interstate migration.

“I think the election result will give more confidence to people to invest in the market now,” Mr Kusher said.

“There’s also the likelihood of an interest rate cut and APRA looking at reducing loan serviceability calculations.

“It’s still going to be difficult to get a mortgage, but I wouldn’t be surprised to see a bit more investor activity.”

Sales activity and home values fell in almost all regional markets in the state over the 12 months to March, but there was one standout.

Wide Bay was the only region where both house and unit values increased during the period.

House values increased by 0.7 per cent over the year, while unit values are up 3.8 per cent over the same period.

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The average time it takes to sell a home in the Wide Bay region has actually improved year-on-year, with the average house selling five days faster and the average unit selling two days faster.

Mr Kusher said the Wide Bay market had experienced a large correction in recent years, particularly the unit market.

“That’s probably reflective of a bit of an improvement in housing market conditions in that region,” he said.

“It highlights that there’s a bit of demand coming back into that market.

“It’s pretty affordable and we’re seeing more people migrate to Queensland, so perhaps they’re moving a bit further north and seeing the lifestyle benefits.”

The largest annual fall in both house and unit values was seen in Townsville, where house values were down 4.8 per cent and unit values were down 13.5 per cent from a year earlier.

Universal Buyers Agents director Darren Piper said he was already noticing the impact of the federal election outcome on the local market and increased interest from investors.

“A positive change is being experienced as buyers are returning steadily to the property market and the rate of decline in property prices slowing down,” Mr Piper said.

“We are seeing buyers jump straight into the market now the election is said and done.”