Townsville housing market ends 2019 on a high note while unit prices struggle to compete

There has been a turnaround in the Townsville housing market, according to the latest research released by the Real Estate Institute of Queensland.

Real estate generic

THERE has been a turnaround in the Townsville housing market, according to the latest research released by the Real Estate Institute of Queensland.

Figures reveal that during the December quarter the Townsville property market returned to sound market conditions.

Townsville recorded a quarterly median house sale price growth of 1.9 per cent to end the year at $316,000.

The increase comes after a number of quarterly reductions in the past year.

The strongest performing Townsville suburb in the past 12 months was West End where the median house price increased 10.4 per cent to finish the year at $355,000.

Other indicators showing market conditions getting stronger were the average days on market for properties dropped from 57 to 54 over the year.

Overall, the number of house sales over the year was only down 5 per cent on the year before.

The REIQ report said unlike many other regional areas, Townsville’s vacancy rates had reduced. The median weekly rent for a two-bedroom unit in December was $285, this is up 14 per cent on the same period compared to last year.

Although the Townsville housing market showed an upswing in conditions, the local unit market recorded “variable results”.

Units for sale were staying on the market for longer and there had been more discounting from sellers.

There was a 5.7 per cent downfall in the median unit sale price to the end of the year at $221,500.

However, the REIQ said there was a positivity to the cheaper unit prices as it would likely attract buyers and investors over the short to medium term, given the high gross rental yields on offer.

Originally published as Townsville housing market ends 2019 on a high note while unit prices struggle to compete