Townsville’s property market has outperformed Australia’s three biggest capital cities, posting a bigger increase in median sales prices over the past three months.
New data shows that the Townsville LGA recorded an increase in median house sales prices of 2.1 per cent in the past three months, and 3.1 per cent in 12 months.
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The result has seen the overall median house price in Townsville creep up to $330,000, a $10,000 increase on the same time last year.
Over that same three month period, Brisbane recorded a 3.1 per cent drop in its median house sales price.
The median sales price in Melbourne also fell 0.7 per cent, while Sydney recorded no growth in sales prices.
Brisbane’s median house price fell 3.1 per cent over the past three months.
REA chief economist Nerida Conisbee said regions with strong ties to the resources sector were performing strongly despite COVID-19.
And in many cases they were outperforming the capital cities.
“Mining may be a factor in Townsville but it is a big city supported by other job drivers such as defence, education and the medical sector,” she said.
“It could also be benefiting from people wanting to leave the bigger cities (due to COVID-19).
“Affordability would also be a selling point for Townsville.”
Ms Conisbee acknowledged that Townsville’s property market had “taken a few knocks” in recent years, but there were signs that confidence was returning.
“The very low rental vacancies in Townsville at the moment is also probably reflective of population growth,” she said.
“That usually means there is some good things happening in the local economy and when there is economic nd population growth, the market can bounce back quite quickly.”
REA chief economist Nerida Conisbee
But what suburbs in the Townsville region (SA4) are batting above average?
The data shows that houses at Forrest Beach in the Hinchinbrook shire are going gangbusters, posting a whopping 67 per cent increase in median sales prices over 12 months, with 17 houses sold during that period.
The median sales price has jumped from $173,684 to $290,000 in just 12 months, according to realestate.com.au.
Buyers are also snapping up vacant land at Forrest Beach, according to CoreLogic RP Data.
Current listings in Forrest Beach range from $850,000 for a house with water views on 2.37 hectares to a three-bedroom house on a 809sq m block for just $150,000.
Mary Venables of Venables Real Estate Forrest Beach said the higher median sales price was likely influenced by a few big sales, rather than being truly reflective of the average house price.
But she said Forrest Beach was indeed seeing a renewed interest from buyers, especially from Victoria.
“The houses I am selling at the moment are more in the lower price bracket so good buys,” she said.
“We are also seeing a lot of vacant land sales here.
“There is just people coming out of the woodwork down south, and they are buying with the intention to relocate.”
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In Townsville, Jensen recorded a 33.2 per cent in its median house prices in the past 12 months, likely driven by the new residential estates being constructed in the area.
There, the median house price has risen from $390,000 a year ago to $519,500, with 16 properties sold in that 12 month period.
Again, new home builds and acreage sales have lifted the median house price, with some bargains under $300,000.
In North Ward, the median house price has jumped from $505,000 to $665,000, a 31.7 per cent increase.
The sought-after bayside suburb saw 21 houses change hands over the past 12 months.
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Ms Elliott said a few big sales could be skewing the percentage increase, but she agreed with the current median house sales price.
She said some pockets of North Ward could yield sales over $1 million, but buyers could still get a bargain in the picturesque suburb.
“I am seeing a lot of interest from interstate buyers in particular,” she said. “And they have the cash to spend.
“I would say they (interstate buyers) are looking in that $900,000 to $1.2 million bracket mostly.”
But one of the biggest influences on the North Ward market was the low vacancy rates and the “extraordinary” rental yields being achieved.
“We have a waitlist just for rentals,” she said. “We just haven’t seen the transition out of Townsville that we would usually see, the people travelling, relocating.
“We are seeing locals upgrading, and quite a few professionals from outside of Townsville looking to relocate here.
“There is definitely more positivity in our market.”
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TOP 20 SUBURBS FOR MEDIAN SALE PRICE INCREASES (12 months) – TOWNSVILLE REGION
Suburb/Increase/Current Median Sales Price
Forrest Beach +67% $290,000
Jensen +33.2% $519,500
North Ward +31.7% $665,000
Rasmussen +19.3% $210,000
Alligator Creek +18.6% $492,000
Ayr +15.6% $185,000
Vincent +11.6% $240,000
Mount Low +11.4% $370,000
Heatley +10.7% $238,000
Alice River +10.2% $498,500
Pimlico +8.8% $307,500
Nelly Bay +8% $351,000
Mysterton +7.6% $387,500
Condon +6.9% $256,500
Gulliver +6.1% $260,000
Balgal Beach +6% $265,000
Cranbrook +5.9% $263,500
Thuringowa +5.8% $275,000
Bushland Beach +5.1% $385,750
West End +4.3% $360,000
(Source: REA Market Trends report August 2020)
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