Demand driving Townsville property market
The Townsville property market remains strong thanks to population growth and high demand, a new market analysis has found.
The Townsville property market remains strong thanks to population growth and high demand, a new market analysis has found.
The July Herron Todd White Month in Review found both Townsville’s unit and house markets were rising.
Local Herron Todd White valuer Jamie Martin said population growth fuelled property price increases across the region, especially in the lower section of the market.
“Townsville has topped the annual growth in net internal migration list, with more than a 500 per cent annual increase according to the latest Regional Australia Institute net internal migration inflows data, over the year to March 2023,” he said.
“Nearly three-quarters of net inflows came from other regional areas.”
Mr Martin said this allowed the property market to remain strong across all sectors and the rental market to remain tight with limited vacancies.
“This has in turn driven the investor market with multi-unit dwelling sales (duplexes, flats buildings) selling increasingly fast with multiple offers,” he said.
“Gross yields generally range from 5-8 per cent depending on location and quality.”
Mr Martin said outer suburban homes were selling at a steady pace as the fringe and inner suburbs became less affordable by local market standards.
“Prices have increased as the bottom of the market continues to climb faster than the middle and top end,” he said.
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Mr Martin said while the values were rising fastest in the lower section of the market, demand was still strong across all levels.
“The fringe market continued to experience price growth with more buyers than sellers and agents reporting good numbers at open homes, generally with multiple offers being tabled,” he said.
“The rural residential market continues to be the most sought-after market at present with the highest volume of sales in land and established houses.
“Townsville is gifted with multiple estates north, south and west of the city all within easy commute of the city if required.
“Strong prices are being seen in all areas with no sign of easing in the near future.”
Mr Martin said the inner-city housing market was running hot, generally limited only by supply.
“The 4810 postcode delivers at present with strong sales being achieved in all suburbs,” he said.
“There appears to be no abating of the current appetite for this stock.”
Nationally, the property scene was looking more uncertain.
Ben Esau, Herron Todd White national director of residential, said the most recent phase of Australia’s post-pandemic economy had created a precarious remainder of 2023 for the residential property market.
“The first half of 2023 saw price gains across most capital cities and while the discussion of a rebound has filled some circles, there are significant headwinds expected through the second half of the year that have the potential to make any recovery short lived,” Mr Esau said.
He said with future rate rises on the horizon, mortgage stress was likely to have an impact on the property market.
“The lag effect of interest rate increases may not just be the time taken for the new rates to be implemented by lenders but also how long stressed homeowners can stay liquid after the shock of this rate rise cycle,” he said.
Originally published as Demand driving Townsville property market