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Construction boosts Townsville short to medium term prospects

Northern Australia - Local, State and Federal Government Ministers and Stakeholders stand ready to turn the first sod of soil on the new $250 million North Queensland Stadium

Construction Boost for Townsville

Construction employment is driving a resurgence in demand for rental accommodation and dwelling ownership in Townsville’s property market at the cost of vendor discounting and modest correction in capital losses.

Townsville medium house prices have dropped over the past twelve months by 7.4 percent and 4.5 percent over the June quarter. However, the Australian Bureau of Statistics (ABS) indicates that demand is picking up and that prices are turning a corner.

Big data and property analytics company, Core Logic have found that nearly 45 percent of property sold at a loss in Townsville during the March quarter, down nearly 2 percent twelve months earlier.  Compared to the national average, Townsville’s pain is nearly 30 percent higher.

Reporting to the Sydney Morning Herald, local real estate professional Julie Mahoney from Harcourts said, “I firmly believe the future here is bright – our property is as affordable as it’s ever been. Townsville is more than a ho

Commercial Property Report
Townsville Commercial Property Report – Click on image to get your copy here.

tspot; it’s genuinely a wonderful place to live.”

 

Government and private investment in construction of infrastructure, transport, housing, mines, solar and manufacturing industries such as the North Queensland Stadium, Townsville Port expansions, Sun Metals and Ross Dam solar projects as well as other solar and infrastructure projects across the northern region are fuelling the positive outcomes.

The renewable energy industry reports approximately 20 solar projects have already started and that another 30 projects are forecast to be added across North Queensland.

Over the past twelve months, Townsville’s jobs market has increased by 12.7 percent. Propertyology managing director, Mr. Simon Pressley said: “Changes in job volumes at an individual city level – as opposed to just looking at unemployment rates in isolation – provides more insight into the future performance of property markets.”

The Adani’s head office are filling 80 new professional, management and administration positions expecting demand will rise to 500 as Indian energy and logistics conglomerate moves ahead with its Galilee Basin coal mine and railway line projects to the company’s port at Abbot Point.

Townsville’s recovery has been long lived but the resurgence of stimulus investment in the region is seeing positive green shoots emerging that could drive a revival of prices across the market.

Rental vacancy rates which have dropped to 5 percent, yet still defined as a weak market, is a good lead indicator for demand in short to medium term accommodation. Twelve months ago the vacancy rate was 7.1 percent. Depending on the longevity of the jobs and business activity, the sales market could see a meaningful change in prices also.

Potential major projects going ahead, being delayed, downgraded, diverted or mothballed to regions outside of the Townsville “jobs” impact zone have been ranked on a probability scale.

However, projects such as the stadium, port expansion, housing projects such Elliott Springs, solar projects such as Ross Dam and Sun Metals solar are already committed. These are the projects stimulating the economy as we speak and are anticipated to create approximately 1500 jobs over the next 2-3 years.

Further reading:

Northern Australia Story – The stadium of economic hope and hyper corporatocracy

Kirwan – Top Price Property of the Week – 1 Crown Close – $655,000

Commercial property in Townsville found gasping for owner-occupiers

Hotel managers slam Townsville Council over Double Tree exclusive

Agricultural and water security boost for North Queensland; Hells Gayte Dam $2.2 million feasibility study 

Magnetic Island – Top Price Property Winner of the Week – 3-5 Endeavour Road – $520,000

Durie Is Out! Gay And Green Thumb Poster-Boy Snapped Duplicity Of Premier On Townsville Water Security

Guide to selling a luxury home

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Aaron M, Editior
Aaron is the founder and editor of TREN eMagazine with 15 years experience in the real estate industry investing and helping investors seek value, leverage value and capitalise on value, developing professional and technical skills and capabilities that have enabled his success in business from startups, adoption, asset growth, management and community leadership projects. Aaron also loves travelling, sports, his partner Jodie and helping people discover their "why" and find their few "what's" in life that realise the "wows. The " www" in www.townsvillerealestatenews.com.au is one of his why, what and wow's that strive to add valuable content and analysis for readers to participate and win.
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