March Quarter- Townsville Real Estate Market

Well, the figures are finally in for the March quarter and I guess from an agency perspective we were a little surprised to see the 2.1% fall in house prices from the previous quarter which showed a very slight increase.  Sales activity was reportedly solid in terms of contracts in talking with fellow principals so there was an expectation that we may have seen a neutral to slightly positive quarter this time around but that was not to be.  The impacts from the floods in February perhaps had some bearing on this however we will get much clearer after the results for the June quarter are released as it will take time for the disruption of the floods to even out in both the sale and rental markets in Townsville.  Whilst the number of houses for sale in Townsville continued to show a decline some recent announcements look set to put Townsville back in the spotlight especially our property market.  With CBA’s chief economist suggesting the recent rate cut could be followed by a further two cuts dropping the rate down to an unprecedented .75% and the announcement around Adani finally getting State Govt. approval investors are beginning to eye off Townsville as a good place to start investing in again.  With our median house price down to $310,000 and units $250,000 and such cheap finance available, the Townsville real estate market is shaping up as a better than average odds bet for an investor to enjoy (dare I say it) a capital gain in the short term on their investment.  Whilst most property investors are not fixated on capital gains as property is viewed as a more long term option my belief is the more speculative investors will be watching our market very closely with the view to start jumping in because of how long it has been since our last peak.  We sold a property in the northern corridor just this month to what most would call a professional investor who has a portfolio of properties already and this purchase was one of several in the Townsville area they have made this year.  Whilst I don’t expect things to change overnight the mere fact that this type of investor is actively putting their faith in the Townsville real estate market you can be assured others will follow and with that will come the rise in demand which in turn drives our prices.  You heard it here first let’s see how long it does take!

To view the latest Townsville Market Monitor click here

By Damien Keyes

Source Report: REIQ

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