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
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.
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