Market on the Rise
It is an exciting time to invest in North Queensland. The region is growing and changing, with traditional industry sectors thriving and innovating, and new industries and investment opportunities rapidly emerging.
Townsville’s median house price is poised for double digit growth by mid-2022 a new report by QBE Lenders’ Mortgage Insurance has found. Real estate agents are seeing an increase in activity and buyers are getting into the market while prices are low.
The Townsville property market represents a world of opportunity for the savvy purchaser.
According to realestate.com.au, Townsville house prices are on the rise. The Residential Property Prospects 2018-2021 report by BIS Oxford Economics predicts that Townsville’s residential market has stabilised and price growth is expected to the end of 2021 and into 2022.
The recent downturn stabilised itself in 2017 and things have been on the improvement ever since. Interest from southern investors, new arrivals seeking green change escaping interstate COVID constraints, and a range of major infrastructure projects are some of the factors driving the resurgence.
The median house price in Townsville is $335,000 and the average property takes roughly 63 days to sell. The rental market continues to stabilise and vacancy is down to 3.8 per cent. This data speaks to a city that is demonstrating strong sustainable growth. Townsville has experienced a jump in about 11% in demand for properties, reflective of burgeoning demand. This looks like it will keep going as new residents to the area consider local property to be very affordable, compared with other large regional cities and the capitals.
A decade of low-level interest rates has led to rapid asset appreciation (property, equities, cryptocurrency). Townsville has not experienced the asset price inflation of capital cities and is less at risk of a significant price correction should interest rates begin to rise over the coming years. The city presents a golden opportunity for those living in capital cities to migrate and lock in the substantial capital gains achieved over the past 10 years.
Townsville (and North Queensland) is presenting itself as part of a positive property cycle. Over $7 billion has been committed to spending more in infrastructure to support the diverse and growing economy in the area.
There’s so much to love about living and playing in Townsville. The natural beauty, the man-made attractions, the people and the culture. There’s something about Townsville that just sings – it really makes the spirit soar. The community events that are held here are truly one of a kind and this is the kind of place where you really want to put down roots.
Where to Live?
Housing within Central Townsville itself is continuing to expand rapidly, with many house, unit and high-rise options. Buzzing with cafes, fine dining, bars, and boutique shopping Townsville City Centre is a great place to live. Townsville City, North Ward and Castle Hill are all suburbs within the Inner-City Area
Townsville is a coastal city with a huge variety of beaches and coastal real estate to enjoy. If you would like to live near the beach The Strand, North Ward and Pallaranda are all suburbs at the beach while also being inner city suburbs.
Bushland Beach, Saunders Beach, Toolakea Beach, Toomulla Beach, Balgal Beach are all Beach suburbs around 25 minutes’ drive from the City Centre.
There is fantastic diversity between suburbs across Townsville, making your choice a little more difficult!
Mundingburra, West End, South Townsville, Annandale and Belgian Gardens are inner-city suburbs to consider at if you are looking for big yards with wide streets. All of these are less than 15 minutes drive to the city.
Townsville is known for its amazing historic Queenslander homes. If the sound of a renovation project dosen’t frighten you, you’re sure to find something special within a stones throw of the city center.
Just 8 Km’s away, or a 20-minute full-service ferry ride from the centre of Townsville, Magnetic Island is another great option. The Island is already home to 2,100 residents with affordable real estate options including Units, Houses and Acreage.
On the outskirts on Townsville, you have some great options for the rural lifestyle. Oak Valley, Alice River, Alligator Creek and Blue Water are a must see. These areas are scattered with farming communities and offer the largest land sizes in the Townsville region.
What might you expect to pay?
When buying, you’re likely going to pay about $375,000 to $425,000 for a three-bedroom two-bathroom dwelling close to town, and for renting, it’s around $420 per week. As with all real estate, particular suburbs and local matter. Compared to other areas in Queensland, Townsville falls at the lower end when it comes to property prices.
When it comes to living costs, it’s very much down to your lifestyle and how much time and money you spend on extra-curricular activities. The average main meal at a restaurant would cost you around $25, with petrol falling a shade cheaper than city prices.
Your basic utilities might be anything from $95-$450 per month, and salaries on average after tax are $4,228. This income figure is somewhat skewed by the large number of mining and resource sector workers that call Townsville and the surrounding region home. Traditionally this sector pays quiet well and affords many of its employees a comfortable lifestyle, particularly when you factor in the affordability of local housing across North Queensland.
The median house price in Townsville is $335,000 and the average property takes roughly 63 days to sell. The rental market continues to stabilise and vacancy is down to 3.8 per cent. This is surely a town on the up which is reflected in this data. Townsville has experienced a jump in about 11% in demand for properties over the past 12 months.
Investors are flocking to this market with many electing to sell up and rent while they figure out the next step in their journey. Landlords are balancing the benefits of appreciating investments against increased interest rates, with rents slowly increasing across the region, reflecting trends driving southern markets. With increased numbers moving to the region, the rental market remains extremely tight with a significant lack of vacant stock a major headache for local realtors and renters alike.
Interstate buyers are coming to call as they consider inflated house prices in the big smoke against comparative returns available across region Australia. Due to its lifestyle, job opportunities and economic indicators, the Townsville property market is starting to simmer. With more bang for your buck, in simple terms, Townsville represents a great medium to long term investment that does not compromise on infrastructure and lifestyle afforded by big city living.