First homebuyer activity on the up in Townsville
The Townsville new home market is experiencing a surge in interest from buyers and investors, with one developer seeing an increase in first homebuyer activity.
The Townsville new home market is experiencing a surge in interest from buyers and investors, with one developer seeing an increase in first homebuyer activity.
Urbex Realty General Manager, Craig Covacich said there had been an increase in interest across Urbex’s two Townsville developments, The Reserve in Bohle Plains and Somers and Hervey in the Upper Ross Region.
Mr Covacich said the lift in consumer confidence toward constructing a new home was due to several key factors, including the pause on interest rate hikes, the stabilisation of new housing construction costs, and new housing falling within the price threshold of new housing Government grants.
“The demand for constructing new homes is on a positive trajectory as first homebuyers enjoy the benefit of new housing grants and interstate investors seize the low capital entry and high rental yield opportunities,” he said.
“Since the beginning of the year, we have seen a strong surge in first homebuyer activity, with an impressive 60 per cent increase in sales volumes across our regional development portfolio compared to the last quarter, highlighting their confidence and significant presence in Townsville’s real estate market.
“Investor confidence has surged in the past 12 months, evident from increased sales to this sector.
“This trend signifies confidence in their outlook towards Townsville’s long-term economic stability.”
Mr Covacich said increased interest in Townsville’s real estate market was being driven by the region’s affordability and high rental returns.
CoreLogic ranked the North Queensland capital in the top 10 of regional areas with a population of over 202,000 and the highest in 12-month home value growth, thanks Townsville’s economic stability, location and sustained growth.
Mr Covacich said Corelogic data showed the median house price in Townsville was sitting at $550,000 with an annual capital growth rate of 34.97 per cent across the past 12 months.
For investors, rental yields for dwellings sit at 4.8 per cent, above the pre-pandemic rate with vacancy rates sitting at 1 per cent.
Mr Covacich said Urbex’s The Reserve was located in Bohle Plains with a variety of land sizes starting at $185,000.
He said the most recent Westringa Land release hit the market in June.
Urbex’s newest development in Townsville, Somers and Hervey, located four minutes from the Ring Road exit to Beck Drive, is offering land from $167,000, with titles expected by mid-July 2024.
Mr Covacich said this development was drawing considerable interest, with more than 70 per cent of the first land release sold within four weeks.
Originally published as First homebuyer activity on the up in Townsville