Cairns Regional Council has voted unanimously to rezone 47 hectares of the Portsmith industrial precinct for mixed-use development, marking a watershed moment in the city's ongoing battle against housing affordability. The decision, finalised at Tuesday's council meeting, paves the way for residential, retail and office construction in a zone currently dominated by warehousing and logistics operations.
The move comes as Cairns grapples with a housing shortage that has seen median unit prices climb 23 per cent over the past two years, according to latest CoreLogic data. The approved precinct, bounded by Bruce Highway, Lake Street and the Cairns Port authority buffer zone, has sat largely dormant for development despite its proximity to the city centre and waterfront.
"This is about creating genuine housing diversity," said a council spokesperson following the vote. "The precinct's location makes it ideal for medium-density apartments, townhouses and starter homes that our younger workers desperately need."
The rezoning follows months of consultation with affected businesses, many of which have indicated willingness to relocate. Several established logistics operators on Pierpoint Road have already flagged interest in alternative sites in the emerging Smithfield industrial corridor, some 15 kilometres inland.
Planning documents reveal the council expects the rezoned area could accommodate between 800 and 1,200 new dwellings, plus substantial commercial and public space. A new pedestrian bridge linking Portsmith to the city centre via the Cairns Esplanade precinct has also been proposed as part of the master plan.
However, the decision isn't without controversy. The Cairns Chamber of Commerce raised concerns about displacing existing industry, while some residents in nearby Manunda and Whitfield worry about traffic impacts during the transition period. A 12-month implementation moratorium will allow detailed master planning before development approvals commence.
Real estate agents have already signalled strong investor interest. Several major developers, including Brisbane-based Grocon and Melbourne's Frasers Property, have quietly acquired strategic land holdings adjacent to the rezoned precinct over recent months.
The council will now prepare detailed planning overlays and infrastructure requirements. A final master plan is expected before year's end, with the first development applications potentially lodged by mid-2027. For a city where rental vacancy rates hover below 1 per cent and median house prices exceed $890,000, the Portsmith decision represents the most significant housing policy shift since the waterfront redevelopment of the 2010s.
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