The latest figures to come out of the REIQ which include the December Quarter results and year ending 2018 confirm what we all expected to see which is another slight dip in prices for the year ending 2018 and also a contraction of sales volumes.  It is not all doom and gloom though with the prices through the December quarter on its own showing a .3% positive growth of the median price to $321,000 which is not something to retire on but we will take it just the same!

What it suggests to me and certainly with the activity we have seen through the March quarter this year is that this could really be the point where the Townsville market has hit the bottom of the cycle and can finally begin the climb back up.  As the report states, it is too early to predict the impact the February floods will have on our market in my view that will be something we see continue to unfold throughout this year.  With so many properties now well underway with their re-builds, as they come to completion later in the year I expect the short-term pressure on rental prices that we are seeing right now to ease back to more normal levels as displaced owners move back into their homes.

I know many tenants and home owners alike have gone through a terrible couple of months dealing with the event itself and the aftermath of cleaning up, insurance claims and trying to get their families into normal working and schooling routines with all this chaos going on.  It has been good to hear that for the most part the insurance companies have come to the party lets only hope that with policy renewals coming up that Townsville gets a fair deal and we don’t see anything silly going on with premiums jumping up in price.

The report also shows that the overall sales volumes have contracted again and this will be something to watch in the second half of this year.  As rental vacancies continue to tighten and rental prices keep moving slowly upwards (which they were both doing before the floods anyway), Townsville will continue to look more appealing with our soft house prices it has never been more attractive to own an investment property.  With our strong population, some welcomed infrastructure spends from all levels of government and the slow return of the mining sector we have a lot going for us and it won’t be long until we see the demand for property lift across the board and it will be driven initially by those investors.

We have seen a really busy start to 2019 in particular with the flood event in February and many clients have called or e-mailed questions of all kinds.  So if there is an issue you are having regarding your property or even just to discuss the market in general, please don’t hesitate to reach out I am more than happy to assist in any way I can even if it is just linking you up with the right people through our extensive network.

Have a fantastic weekend and I look forward to keeping in touch.

By Damien Keyes

Source Report: REIQ

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