Buyers market in the north’s Capital

Posted March 27, 2015

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It’s a buyers market on the property front according to industry experts in Townsville.

Low prices and a positive growth forecast for the region made investment in the area attractive, said REIQ Townsville zone chairman Damien Keyes.

Fringe city properties offered strong capital growth perspective, said Mr Keyes. While the outer suburbs located closer the hospital and university presented strong rental opportunity.

“Those properties tend to accelerate at a stronger rate when the market picks up and while they’re soft it’s a particularly good time to jump in,” said Mr Keyes.

“A lot of what’s transacting is under the $500,000 and is a mix of investors and home buyers.

“With the prices where they are, the opportunity sits firmly with the buyers at the moment.”

According to the latest quarterly data from REIQ, the median house price in Townsville is $342,768.

Despite a recent drop in property prices, rentals were holding, therefore increasing the return for investors, said Mr Keyes.

“There are lots of tenant options for investors looking to minimise vacancy rates by buying in a broad market,” he said.

“Townsville is a fantastic place to invest in long-term. It’s widely acknowledged as the capital of north Queensland. It has a very broad economic base there’s still lots going on here and we’re not really highly dependent on one sector to drive growth.

“It represents a brilliant chance to get in there, prices are not going to stay this level forever and it could certainly go to levels we’ve never seen before.”

The secret to Townsville’s future success, looking forward, was economic diversity, said Live and Invest Townsville principal, David Menson.

“The good thing is we don’t have all of our eggs in one basket,” Mr Menson said.

“We’ve had some tough years in the past but we’ve turned that now, and hinging on the interest rate drops we should see some positive changes soon.”

Townsville was a desirable location and could look foward to strong growth in 2016. ‘‘It really is a lifestyle package here,” Mr Menson said.

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