Revealed: Townsville’s Top 10 most undervalued suburbs

Townsville’s most undervalued suburbs have been revealed, with price rises of as much as $55,000 yet to come in the current housing cycle.

This three-bedrooom home in Currajong sold for $374,000 in May.

Townsville’s most undervalued suburbs have been revealed, with price rises of as much as $55,000 yet to come in the current housing cycle.

Shock analysis by Suburb Data co-founder Jeremy Sheppard found that despite enduring some of the biggest price spikes in recent history, Townsville still has areas where prices have significant room to rise. Townsville’s overall rank was 52/100 which means it is seeing slightly higher demand over supply, making these undervalued areas significantly stand out.

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This 4-bedroom Kelso home sold for $780,000 last week.

He said the ripple effect of dozens of factors including nearby growth rates and price rises meant houses were still undervalued across many Townsville suburbs, with Currajong topping his top 10 on a median of $450,000.

It is currently priced about $29,000 below surrounding suburbs with about 6 per cent growth to go to match neighbours, he found.

Also ranked among Townsville’s most undervalued suburbs was Kelso which is priced just $1,000 below neighbours with a median of $465,000, but has significant growth to go given its demand to supply ratio was currently sitting at 65 out of 100.

Mr Sheppard said a DSR+ of 50 was a balanced suburb, with those above the 65 mark seeing demand outstrip available supply – which made them highly desired by investors wanting strong capital growth.

High demand and low supply was the ideal for investors, meaning prices were still expected to see strong growth, he said.

Heatley was also undervalued, Mr Sheppard found, with a median of $426,000 and a DSR+ rating of 65 out of 100. It is still priced $27,000 below its neighbours, despite seeing strong growth rates.

This Mundingburra home sold for $620,000 this week.

Other suburbs DSR rates in the 60s were Wulguru (62/100) where the median house price was $476,0000 – with about $26,000 more to go to reach neighbouring areas – and Mundingburra which is priced higher at $528,000 about $4,000 above its neighbours but seeing strong demand at 62 out of 100.

The other top 10 most undervalued areas in Townsville region included Condon (61/100 and $12k below neighbours), and Annandale which made the cut despite being $56k above neighbours because of its high demand rank at 60/100.

Aitkenvale was 60/100 with $25k to go to reach surrounding areas, West End was 59/100 and still seeing strong buyer levels priced $55k below neighbours, and Deeragun also made the cut (58/100 and $30k below nearby suburbs).

Mr Sheppard said undervalued suburbs would generally outperform their city’s average growth rate.

“So buyers of property in the top (10) should expect performance above the average for that city,” he said.

Place chief auctioneer Peter Burgin said some suburbs definitely have some catching up to do. Picture: Liam Kidston

Place Estate Agents chief auctioneer Peter Burgin, who has over 40 auctions coming up next Friday, Saturday and Sunday as part of the One Winter Day campaign, said “some of those suburbs do definitely feel like they’ve got a bit of catching up to do”.

He said sellers simply wanted to understand what a fair price was in the market.

“Sellers have got great faith in the market that it will deliver a fair outcome for their home. Most also recognise that they’re selling and buying in the same market. I think everyone feels that no matter what’s happening in the market at the moment, property prices are going to get more expensive in Brisbane so they’re trying to make long term decisions now.”

“There is less stock on the market than some buyers would like and that’s also supporting values and outcomes.”

Ray White managing director Dan White said parts of Queensland were growing at a dramatically higher rate than historical trends.

Ray White managing director Dan White – who is leading a Queensland property panel on Sunday to celebrate the Group’s 100 years of operation in Brisbane with REA Group CEO Owen Wilson, Consolidated Properties Don O’Rorke and REIQ CEO Antonia Mercorella – said in the last three years South East Queensland consistently outperformed all major urban areas bar Perth.

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He said Neoval data showed SEQ houses and units grew 9 to 12 per cent and 10 to 11 per cent respectively – a massive rise since the pandemic.

“The last three (to four) years have seen a change in a relatively long standing historical trend – SEQ growth previously tracked with or underperformed the rest of Australia, it’s now growing at a dramatically higher rate.”

“These are bridesmaid suburbs across SEQ that have underperformed compared to nearby higher growth areas.”

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Originally published as Revealed: Townsville’s Top 10 most undervalued suburbs