Well the numbers might be in for the June Quarter for the Townsville real estate market they don’t seem to fully reflect what we are seeing on the ground here as agents at the coal face.  Yes prices are still soft with our median house price down to $305,000 and unit price $230,000 which are both down 2.8% and 11.4% on the year ending June 30 respectively.  Despite this however, gross rental yields have continued their positive move in the June quarter and are now at 5.9% and this was a trend we had seen before the February flood event.  In fact Townsville real estate rental prices had begun to move up slightly in the lead up to Christmas 2018 and our vacancy rate at that time was sitting around the 4% mark.  So with the recent interest rate drop now to a record .75% the conditions for buying real estate in Townsville are even more ripe.  In fact with the volume of infrastructure projects both public and private already in our pipeline our real estate market and economy is poised to have a return to recovery that has been long overdue.  Compounding this is the fact we are entering a State election year in 2020 as well as locally too and we all know what this means!  The State Government would no doubt have taken notice of the role regional QLD played in the Federal election in particular the role Townsville played which can only be a good thing.  I don’t know about you but the hive of road work activity north and south on our highways (which is long overdue) is another sure sign we are heading into an election year next year which can only boost our local economy.  We are seeing bigger numbers at open homes and properties clearing at auction as well with one of our most recent being a tidy property at Kent Street Gulliver and a gorgeous property in Gregory Street, North Ward that both saw over 30 inspections in 4 weeks and a sale under the hammer.  The most encouraging thing about that result was standing at the open homes and seeing groups of buyers (7-8 most weeks) all scouring the property with serious intent so for mine that is the best sign our market is starting to gather in confidence which has been the missing ingredient for too long now.  With all of this current activity it will be very interest when I report on the September quarter results it certainly feels like we are building up to something.

Get in touch for a copy of the REIQ QMM Report

Leave a Reply

Your email address will not be published. Required fields are marked *