Aerial pictures of Flooding of flooding in Townsville. Credit Barry Gibson
Some of Townsville’s flood-affected suburbs have seen a resurgence in buyer demand, with interest up 96.7 per cent in one of the most impacted suburbs.
Exclusive data from realestate.com.au shows that Hermit Park, which is known for its good school catchments and charming Queenslander homes, has seen the biggest year-on-year growth in demand, with its median sales price reflecting the renewed interest from buyers.
Thirty-four houses and 25 units have changed hands in the tightly-held suburb over the past 12 months, with the median sales price for houses up 22.8 per cent in three months to $316,500.
Over 12 months, the median house sales price has increased 4.2 per cent, according to the REA Market Trends report for August.
But the data shows median house prices in Hermit Park still have some ground to make up on its 10-year median sales price of $389,000.
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Aerial damage of Rooneys Bridge, Railway Estate from a helicopter. Picture: Zak Simmonds
Ray White’s Julie Mahoney is marketing a Queenslander packed with period features at 47 Ackers Street in Hermit Park.
47 Ackers St, Hermit Park
She said many of the flood-affected suburbs were “off-the-market” for a few months after the unprecedented 2019 inundation, which was caused by a tropical low that parked itself over the region, causing heavy rain, flash flooding and forced the complete opening of the Ross Dam spillway.
But buyers were now being drawn back to these suburbs.
“People love the area (Hermit Park). It has got some great school zones and the houses are divine and full of character,” Ms Mahoney said.
“Just recently (September 1) we sold one on Carmody Street at auction with eight registered bidders.”
Ms Mahoney said Idalia, another suburb affected by the extreme weather event, was also seeing a comeback.
The realestate.com.au data shows year-on-year buyer demand in Idalia is up 81.5 per cent.
Median house prices slumped 9.9 per cent over the 12 months to August, but the suburb recorded a 3.3 per cent increase in prices in the past three months to $410,000.
Five years ago, the median house sales price in Idalia was $530,000.
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TOWNSVILLE REGION
Suburb/Demand Year-on-Year
Hermit Park 96.4%
Rasmussen 85.6%
Heatley 84.4%
Condon 82.2%
Idalia 81.5%
Aitkenvale 62.9%
Kelso 60.3%
Mount Louisa 58.0%
Bohle Plains 53.1%
Ayr 51.9%
Home Hill 48.0%
Annandale 46.7%
Mundingburra 45.6%
Railway Estate 42.0%
Gulliver 40.7%
Bushland Beach 39.0%
Douglas 37.2%
Burdell 27.4%
Ingham 24.5%
Kirwan 23.7%
(Source: realestate.com.au)
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Keyes & Co principal Damien Keyes, who has a number of listed properties in Idalia, said the appetite for quality houses in Idalia “has been fantastic”.
“I have achieved roughly pre-flood valuations in a number of price points in Idalia,” he said.
“Buyers are asking lots of questions (about the impact of the floods) but they are also seeing the chance to buy a well-finished property in a nice suburb close to the city, one they may not have been able to afford to buy into a few years ago.”
Aerial damage of Idalia from a helicopter during the 2019 floods. Picture: Zak Simmonds
Mr Keyes said he recently sold a lakefront house in Idalia for $760,000 – the highest price achieved so far in Idalia post-flood, he said.
“It was snapped up by a family who experienced the floods in an older suburb,” he said.
“Buyers are coming in eyes wide open, and asking questions around whether properties were flood-affected before the dam was released.
“The general attitude seems to be that the weather event was a freakish one compounded by the management of the dam and that is something buyers are prepared to wear, that they believe that won’t be stuffed up again.”
Keyes and Co Property Director Damien Keyes.
Railway Estate has seen a 42 per cent increase in demand, according to the realestate.com.au data.
Thirty houses have sold in the past 12 months, with the inner-city suburb recording a 12-month median sales price increase of 3.9 per cent to $296,250.
REA chief economist Nerida Conisbee said the recovery in affected suburbs was not dissimilar to other areas affected by natural disasters.
She said the mining recovery in the region was also bolstering the market.
“We see it after fires, floods, buyers come back because these events often happen in desirable areas,” she said.
“We see a short-term dip (in values) but they almost always come back up.
“We saw it after the Brisbane floods (2011), with all those affected areas now recording values well above what they did pre-flood.
“You look at places like Florida (USA) which experiences hurricanes but people keep building there.
“Buyers make adjustments for risk and desirability.”
REA chief economist Nerida Conisbee
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