The major QLD region that is still a buyers market

Queensland’s property boom has been so astounding, even its worst performing region - a major city - posted a healthy 8 per cent rise in values. See the nation’s best and worst performers list.

Australia’s best and worst performing regions during the property boom have been revealed, with one major Queensland city taking the gong for the lowest growth in values in the country.

And it also offers the biggest vendor discounts – a win for weary buyers.

CoreLogic’s latest Regional Market Update revealed that Townsville recorded the lowest annual growth in values for both houses and units off all of the 25 non capital-city property markets despite the garrison city posting a respectable 8 per cent rise in values.

There, vendors were also more likely to offer a discount to secure a sale, on average around 4.5 per cent for houses and 5 per cent for units.

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Aerial shot of Townsville with Castle Hill in the background

But that is good news for buyers, who, unlike in some other hot markets, are still somewhat in the drivers seat.

Townsville boasts some of the most affordable median house prices in the country, ranging from $240,000 in Vincent to $1,052,500 in its most pricey suburb of Castle Hill.

For units, median values range from $120,000 in Cranbrook to $375,000 in the CBD.

A Noosa couple snapped up a Nelly Bay unit on Magnetic Island off Townsville in September this year after selling their Sunshine Coast apartment

But Terry Ryder of Hotspotting recently named Townsville as a town to watch for price growth in the coming year, with prices rising.

The Townsville market recovered in 2020 and entered 2021 rising strongly … there has been exceptional price growth in many suburbs in 2021,” Mr Ryder said in his recent report, adding that the city was experiencing strong population growth, had a diverse economy and was benefiting from infrastructure investment.

Ray White economist Nerida Conisbee said Townsville took a bit longer to get out of the property boom gate, but it offered many of the key features that favoured price growth.

“We look at 8 per cent now and think that’s low but a few years ago that would have been considered great growth,” she said.

“It is just that 8 per cent in the current market has been overshadowed by huge growth in other markets.”

But looking at the city’s prestige suburbs, Ms Conisbee said the median values offered incredible opportunities.

“Just look at Castle Hill,” she said. “Blacktown in Sydney has a median not far off that, so you get the worst in Sydney for roughly the same price as the best in Townsville.”

At the other end of the spectrum, the region to record the highest yearly price growth was the Southern Highlands and Shoalhaven (NSW), where values rose 35.9 per cent.

The lowest vendor discounts were offered in Hume (Victoria) at 1.9 per cent, while the shortest days of market (18 days) were recorded on the Gold Coast, Sunshine Coast and Ballarat (Victoria).

Property on the Gold Coast is selling fast.

The longest days on market gong went to New England and North West (NSW) with 62 days, according to the report.

CoreLogic’s Research Director Tim Lawless said localised factors influenced each region but common key drivers included a shift away from capitals to regional areas, low interest rates and access to credit, higher household savings and relatively affordability housing values compared to capital cities.

“The top performing regional areas were all coastal or lifestyle markets generally within a two-hour commuting distance of a capital city,” Mr Lawless said.

“These areas fit within the broad trend where demand has surged for lifestyle properties that offer a blend of liveability and commutability.”

House values rose across all major Queensland regions, up 11 per cent in Cairns, Central Queensland (+12.2%), Gold Coast (+31.3%), Mackay (+10.5%), Sunshine Coast (+32.3%), Toowoomba (+15.5%), Townsville (+8%) and Wide Bay (+22.9%).

Noosa on the Sunshine Coast has been hot property for cashed-up interstate buyers and expats, pushing values up 32.3 per cent for houses across the region

Unit values also rose between 3.4 per cent (Townsville) and 30.1 per cent (Sunshine Coast).

“(The) Wide Bay region recorded an annual growth rate of 29.2 per cent, making it the best performing unit market, followed closely by the Sunshine Coast region (29.1%), the report said.

Across the regional unit market, 18 of the 22 regions recorded at least a 10 per cent rise in values, while 12 regions saw unit values rise more than 20 per cent over the year.

Days on market across the Queensland regions also declined, with Mr Lawless noting that advertised listings across regional Australia were currently 37 per cent below the five-year average compared to the number of home sales, which sits about 24 per cent above the five-year average.

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HOUSES

BEST PERFORMERS

Highest yearly growth: 35.9% – Southern Highlands and Shoalhaven (NSW)

Highest change in sales vols: up 77.1% – New England and North West (NSW)

Shortest days on market: 18 days – Gold Coast (Qld), Sunshine Coast (Qld) and

Ballarat (Vic)

Lowest vendor discounts: 1.9% Hume (Vic)

WORST PERFORMERS

Lowest yearly growth: 8.0% – Townsville (Qld)

Lowest change in sales vols: down 4.3% – Launceston and North East (Tas)

Longest days on market: 62 days – New England and North West (NSW)

Highest vendor discounts: 4.5% Townsville (Qld)

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UNITS

BEST PERFORMERS

Highest yearly growth: 29.2% – Wide Bay (Qld)

Highest change in sales vols: up 119.9% – Central Queensland (Qld)

Shortest days on market: 13 days – Launceston and North East (Tas)

Lowest vendor discounts: -1.3% Mid North Coast (Tas)

WORST PERFORMERS

Lowest yearly growth: 3.4% – Townsville (Qld)

Lowest change in sales vols: down 5.3% – Launceston and North East (Tas)

Longest days on market: 58 days – Central Queensland (Qld) and Bunbury (WA)

Highest vendor discounts: 5% – Townsville (Qld)

(Source: Core Logic Regional Market Update Nov 2021)