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Townsville property market rundown

Townsville property market rundown

The property market of Australia’s 13th largest city features amongst the top 40 per cent of all of Australia’s 550 local government authorities over the last 15 years.

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Simon Pressley

BY SIMON PRESSLEY

For a variety of reasons, the Townsville market has been subdued over the last few years but the current flat market should not be the smokescreen that prevents people seeing Townsville’s rock-solid fundamentals.

Population growth rate, median household age and median household income for Townsville are all well and truly on the right side of national averages.

Exceptional infrastructure, an economic and geographic profile that’s destined to benefit from the Asian Century phenomena, and a median house price that’s a mere 60 per cent of the capital city average, round off these great fundamentals.

It’s well known that the Australian federal government sees northern Australia as being integral to capitalisation on the unique opportunities from the Asian Century.Townsville’s economy is actually more diverse than a number of capital cities.

Australia’s unofficial military capital has a large employee base in education, health and science. The quality port infrastructure is further expanding and is the backbone to support the region’s vast range of agriculture and mining products.

PROPERTY MARKET PROFILE
TOWNSVILLEAUSTRALIA
Population
[June 2015]
195,00023,714,000
Population growth rate
[10-year average: 2004-2014]
2.4%1.7%
Number of dwellings 73,500 9,600,000
Median household age
[Aust average = 37]
3337
Median household income
[Aust average = $1,234]
$1,381 pw$1,234 pw
Median house value $355,000$604,700[June 2015: ABS]
Median unit value $280,000NA
Average annual price growth
[Over 15 years since turn of century]
7.7%8.5%[combined capital city average]
Median rental yield5.1%4.2%
Total return
[Average annual price growth + rental yield]
12.8%12.7%
National ranking
[‘Total Return’ comparison to Aust 550 LGAs]
220 / 550[Top 40%]NA
Biggest industry employers Health, public admin / safety,
retail, construction, education
Health, retail, manufacturing, construction, education
Information courtesy of Propertyology’s research collateral www.propertyology.com.au

Tourism is also part of the economy.

Townsville is an exceptionally resilient community who have used their strong work ethic and positive spirit to overcome far bigger challenges than a business closure such as Clive Palmer’s Queensland Nickel.

There are several significant job-creating projects that are about kick off and even more in the big-picture scheme of things.

Townsville_Jobs-PropertyMarket_2015.11

Projects & industry announcements

Waterfront Development Scheme to entice private investment of up to $1.9 billion on waterfront restaurants, retail, apartments, bars, and walkways to connect Ross Creek with The Strand. A proposed $1.5 billion expansion of the existing James Cook University. $50 million upgrade of the terminal at Townsville Airport. $55 million expansion of Port of Townsville’s berth 4, which will effectively double the port’s container capacity. This is on top of the new $85 million berth, which opened in May 2015. Memorandum of Understanding signed between Port of Townsville and China’s Port of Qinzhou for export of commodities such as sugar, copper, zinc and lead. $30 million refurbishment of the existing Jupiters hotel and casino. Development of a new sporting stadium for the North Queensland (NRL) Cowboys and other events has been proposed.

Properties for sale

 

MarketActivity_2015.10

The property oversupply from a few years ago has since been absorbed and property market confidence is returning. This is evident by the 9.2 per cent increase in property sales volumes for the last quarter when compared to the previous year.

While Propertyology doesn’t expect Townsville’s property market to break any records in 2016, we’ve always liked fundamentals such as its exceptionally diverse economy, port infrastructure, above-average population growth and its demographic profile.

Townsville units sold

About Simon Pressley

Simon Pressley is managing director of Propertyology, an REIA Hall of Fame inductee, property market analyst, accredited property investment adviser and buyers' agent. Propertyology works exclusively with property investors to purchase properties in strategically chosen locations all over Australia.


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Original author: Simon Pressley
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