Colliers managing director Peter Wheeler sees record growth in Townsville CBD

Townsville’s CBD is enjoying the most active property market that this real estate director has seen in more than 25 years in business. See who’s behind it.

The property sales activity in the CBD has been the most active that Colliers Townsville managing director Peter Wheeler has seen in 25 years in business.

Also, mostly, it has been local buyers.

“The CBD has seen 20 commercial property sales so far in 2022, along with growth in new commercial leases in the precinct. This is a fantastic result – local businesses are seeing new opportunities and investors are feeling confident in the future of our city,” Mr Wheeler said.

He said continuous infrastructure development, safety improvements, event attraction and cosmetic upgrades had all helped make the area a better place to visit, while property sector conditions were also spurring this growth.

“Townsville’s economy has been performing strongly and constant progress is being made on the growth of new industries that are securing our city’s future,” Mr Wheeler said.

“While rising interest rates are making headlines, the current cost of borrowing remains below Australia’s longer-term average, helping to keep property investment strong in areas with a strong economic outlook like North Queensland.’

About half the sales have been in Flinders St with other sales in Sturt, Stokes and Hale streets.

Buyers included a mix of local and southern-based investors but many were business people who would be owner-occupiers, Mr Wheeler said.

Colliers Townsville managing director Peter Wheeler says the CBD is having the most active property market in more than 25 years.

He said people could see how the new stadium was bringing life back to the city and

incentives being provided by the council was also playing a role.

Grant funding is available for up to 50 per cent of eligible repair works, to a maximum of $30,000 per project. The council has received 16 applications in a recent funding round.

“I think the incentive package is playing a role in repurposing or helping some of those new purchasers do up some of these older buildings. It’s ultimately what we want to see in the CBD and what that incentive program is designed for,” Mr Wheeler said.

Mr Wheeler said while the Reserve Bank had hiked cash rates, at 2.5 per cent they were still low and much lower than the more than 7 per cent level reached in the 2008 boom.

He said comparative increases in construction costs for new property was also favouring refurbishment of existing properties.

They were starting to see the values of existing industrial properties increase because of the higher costs to build new sites, Mr Wheeler said.

Originally published as Colliers managing director Peter Wheeler sees record growth in Townsville CBD