Cairns Council Approves Apartment Zoning Overhaul in City Centre as Housing Pressure Mounts
A sweeping planning decision this week will open up new development corridors along Abbott Street and the Esplanade, as councillors respond to mounting pressure over affordability.
Our reporters are based in Cairns and cover local government, business and community. The Daily Cairns is independently owned and editorially independent — no political party, council or commercial sponsor decides what we publish. Read our editorial standards →
Cairns City Council has voted to expand medium-density zoning across the city centre, marking the most significant shift in planning policy since 2019. The decision, passed 8-3 on Monday, removes several obstacles to apartment development along Abbott Street and extends permissible building heights to 18 storeys along the Esplanade foreshore—a move that local planners say could unlock tens of millions in development investment.
The overhaul responds to data showing Cairns' median house price has climbed to $695,000, a 34 per cent increase over five years. Rental vacancy rates hover below 1 per cent, with median weekly rents now exceeding $450 for a three-bedroom home. "We were facing a crisis," said a spokeswoman for the Cairns Chamber of Commerce, noting that the shortage is already deterring skilled workers from relocating to the region.
The council's planning department flagged particular opportunities along the Cairns Central precinct, where several ageing office buildings could be converted to residential use under the new framework. The Cairns City Library and performing arts venues on Abbott Street will remain protected heritage sites, but their surrounds have been rezoned to permit mixed-use development.
Not everyone celebrated the move. The Cairns Heritage Action Group lodged a formal objection, warning that rapid apartment construction could compromise the character of the Esplanade, a cherished public space and key tourism drawcard. Environmentalists raised concerns about stormwater management and tree canopy loss in the city centre, where green cover has declined by 8 per cent since 2015.
The council has commissioned an independent review of transport infrastructure, acknowledging that bus services and parking will need expansion to cope with an influx of new residents. Initial estimates suggest the planning changes could accommodate 2,500 additional apartments within five years—equivalent to housing roughly 5,500 people.
Developers have already circled several sites. Two major applications for the Abbott Street corridor are expected before August, according to industry sources. A spokesperson for the Urban Land Institute said the timing reflects broader confidence in Cairns as a secondary growth market, particularly for professionals seeking alternatives to Sydney and Melbourne's saturated housing markets.
The full planning framework changes take effect on 1 August. The council will revisit the policy in 18 months to assess implementation and neighbourhood impact. Affordable housing targets remain under discussion, with advocacy groups pushing for binding requirements rather than voluntary contributions from developers.
This article was compiled by AI from the sources linked above and screened before publishing. See our editorial standards.
