A NEW report has highlighted the resilience of the Townsville property market during COVID-19, with sales volumes and buyer confidence remaining high.
At the ‘start of recovery’, the Townsville residential property market continues to see strong
levels of activity with sale volumes trending higher and general market sentiment remaining positive, according to the Herron Todd White (HTW) Month in Review report for September.
“House sale volumes started strongly in 2020 before dipping in late March and early April with the onset of COVID-19 restrictions,” the report said.
“By May, sale volumes had regained momentum and have continued to consolidate on the strong start to 2020.”
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Herron Todd White North Queensland managing director Darren Robins said Townsville was now seeing sales taking place across all suburbs more consistently, with much less focus
than before on the central (4810 postcode) suburbs.
“Anecdotal evidence suggests that the residential land market has seen a surge in activity on the back of the homeowner grants with land in a wide range of locations and price points seeing activity,” he said.
Herron Todd White North Queensland managing director Darren Robins. Picture: Evan Morgan
Master Builders North Queensland regional manager Emma Peters said there had been a “giant surge in land sales” following the announcement of the Federal Government’s $25,000 HomeBuilder grant.
The financial boost is on top of Queensland’s $15,000 first homeowner grant and the $5000 regional home building boost, meaning first home buyers could be eligible for up to $45,000 in grants to help buy their first home.
Masters Builders Regional Manager Emma Peters on site at Eden Park’s new estate
Ms Peters said the number of people going through display villages soon after HomeBuilder was announced had “exploded”, with one developer reporting a 980 per cent increase in the number of land sales.
“We were coming off a low base though as residential construction had been very low for several years,” she said.
“And these (current) house and land sales are subject to finance, with buyers awaiting approval for the HomeBuilder grant.
“Hopefully that (approvals process) doesn’t drag on because we are pleased to see the residential sector booming.
“That has a flow on effect to the whole construction and associated industries … and the local economy.”
Ms Peters said it was still too early to tell whether the boom in sales was being driven by interstate buyers, but many developers were reporting significant uptake by locals.
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Lifestyle is a big drawcard. Picture: Evan Morgan
Elements NQ has two developments under construction — The Orchard at Jensen and Riverstone in the Upper Ross – and another three projects in the planning phase.
Elements NQ sales manager Paul Fontinos said sales were up 400 to 500 per cent, albeit off a “low base”.
He said the grants had “absolutely worked” to stimulate the construction sector, prompting buyers who may have waited a few more years to buy to take the leap early.
“It was instantaneous,” he said, warning that there was already signs of a skills shortage in the region.
“There are builders who are so busy they are already saying they can’t take on any more work this year,” he said.
But Mr Fontinos said the boom in new home and land sales had huge benefits for the local economy.
“People think it is just the builder, the tiler who benefits, but people go out and buy rugs, couches, pets, turf, irrigation,” he said.
“It is the engineers, the town planners, valuers, banks. It stimulates so much growth and employment, directly and indirectly.”
The REA Market Trends report for August shows that the suburb where the most houses changed hands over the past 12 months was Kirwan, with 256 houses sold in the past 12 months.
Bushland Beach and Kelso round out the top three suburbs, recording 132 and 118 sales respectively.
Other top performers can be found in suburbs where house and land packages are being snapped up by first home buyers and upgraders, including Mount Louisa (113 sales), Burdell (84), Mount Low (60) and Bohle Plains (52).
Maidment Group’s Harris Crossing development SUPPLIED
New estates include Maidment’s Sanctum in Mount Low and Harris Crossing at Bohle Plains, Urbex’s residential estate Kalynda Chase, also at Bohle Plains, Mendi Group’s Summerset Estate at Mount Louisa, Markwell Groups Pinnacle Views at Kelso and Stockland’s North Shore community at Burdell.
Managing director of Mendi Group, Jeff Doyle at the site of a new residential development in Mount Louisa, Summerset Estate. PICTURE: MATT TAYLOR.
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