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Townsville: Market status

  • Townsville is Australia's largest urban centre north of the Sunshine Coast which is expected to see its population increase by 75% from 180,114 to 314,362 between 2011 and 2036. Source: Queensland Treasury
  • Townsville hosts a diverse economic base, with no single sector contributing more than 12.3% of Gross Regional Product during the 2012/13 financial year. Rental, Hiring & Real Estate Services (12.3%), Public Administration & Safety (11.1%), Manufacturing (10.7%), Construction (7.7%) and Health Care & Social Assistance (7.5%) are the major pillars in the local economy combining to contribute 41.8% of Gross Regional Product. This diversity of sectors creates both depth and stability to the economy.
  • As the Australian economy rebalances in the wake of the 2012 mining boom, the focus is now shifting towards the bigger picture and ensuring future economic prosperity. As the largest city in Northern Australia at the new 'front door to Asia', Townsville is poised to lead a push towards attracting future trade and tourism investment by fostering Sister City relationships with the likes of Asia, Papua New Guinea, Hong Kong and Shanghai.
  • According to Enterprise Townsville, a total of 44 major projects (values at $5M or greater) have recently been completed throughout Townsville City at an estimated value of over $1.8 billion since the 2013/14 financial year. The Townsville region also hosts a further 44 major projects that are currently under construction at an estimated value of $4.2 billion as well as a strong short to medium term pipeline of major projects valued at $42 billion.

Property clock

Townsville LGA is experiencing slowing sales rate with downward pressure on prices; The Village Townsville has moved into market recovery, seeing higher volumes and some price growth.

Source: NPR Co.

 

Townsville LGA summary

For the most part, Townsville LGA’s housing market has endured a gradual correction since achieving a peak median sales price of $369,000 in 2011, bottoming at $342,000 thus far in 2015. However, the Townsville housing market is quite broad in terms of built form, locational attributes and level of new supply, with certain sectors outperforming others.

Fortunately, The Village is favourably positioned along the edge of Ross River just 3.5 kilometres from the Townsville CBD in the inner-south. New housing supply is much more limited in Townsville’s south compared to the north, which hosts the brunt of the regions new house and land projects and remains arguably in a state of oversupply. Accordingly, The Village is better positioned than many new housing projects in the north and is likely to continue to perform steadily as it competes mainly with the established market. A market that The Village holds a range of advantages over through greater quality and more modern housing, lower maintenance and a well thought out, community friendly masterplan.

The Village residential estate summary

  • The close proximity to the Townsville CBD, new retail centres, Palmer Street café precinct as well as the natural advantages of the Ross River and substantial parkland have meant that this project has outperformed many of its competitors.
  • The Village is located approximately 3.5km from Townsville's CBD and within 15 minutes from Townsville Airport, Townsville Hospital and James Cook University.
  • Once complete the 83 hectare project will comprise of approximately 850 homes.
  • The Village will include a mix of detached dwellings, attached dwellings, and villa style dwellings with lot sizes range from 69sqm to 1,029sqm.
  • The development will include several parks and open space areas and provides a high level of amenity with its location on the river and close proximity to the CBD.

 

Rental yield analysis

Median House Price
Townsville Median House Prices 2000 - 2015
Between 2000 and 2015*, Townsville LGA’s median house price has increased by 167% from $128,000 to $342,000. At this rate, Townsville LGA’s median house price has increased by an average of $16,214 per annum each year between 2000 and 2014.
Since peaking in 2010 at $369,000, Townsville LGA’s median house price has declined by 7.32%, stabilising at what is likely to be a cyclical low of $342,000 thus far in 2015.
*2015 sales data are restricted to sales occurring within the first 8 months of the year (Jan – Aug), due to an approximate three-month lag in recorded sales figures.
Between 2000 and 2015*, Townsville LGA’s median house price has increased by 167% from $128,000 to $342,000. At this rate, Townsville LGA’s median house price has increased by an average of $16,214 per annum each year between 2000 and 2014. Since peaking in 2010 at $369,000, Townsville LGA’s median house price has declined by 7.32%, stabilising at what is likely to be a cyclical low of $342,000 thus far in 2015. *2015 sales data are restricted to sales occurring within the first 8 months of the year (Jan – Aug), due to an approximate three-month lag in recorded sales figures.
Median Weekly House Rents
Primary Catchment (4811 Poscode) Median Weekly Rental Rates
The median weekly rental rate for all house sizes has trended upwards with two, three and four bedroom houses recording increases in weekly rents of 20.5%, 26.2% and 23.6% respectively across the analysis period.

Median weekly rental rates have remained steady between the first and third quarter of 2015, falling by just 2% for three and four bedroom houses, whilst two bedroom rents have increased by 6% albeit amidst a continued lack of two bedroom stock.

Note: Disconnected or missing graph lines are a result of a lack of data and generally indicate a lack of supply for that product.
The median weekly rental rate for all house sizes has trended upwards with two, three and four bedroom houses recording increases in weekly rents of 20.5%, 26.2% and 23.6% respectively across the analysis period. Median weekly rental rates have remained steady between the first and third quarter of 2015, falling by just 2% for three and four bedroom houses, whilst two bedroom rents have increased by 6% albeit amidst a continued lack of two bedroom stock. Note: Disconnected or missing graph lines are a result of a lack of data and generally indicate a lack of supply for that product.
Gross Median Rental Yields
Townsville LGA Gross Median Rental Yields: Houses
Townsville LGA’s gross rental yields have been stable for some time, ranging between a low of 4.4% (QTR 2: 2007) and a high of 6.2% (QTR 4: 2012) since the first quarter of 2007. Most recently, with median house prices bottoming in 2015, gross yields have also reached a stable low of 5.5% in the third quarter of 2015, dropping by 0.2 percentage points since the fourth quarter of 2014.
* The graph above shows the aggregated gross median rental yield of two, three and four bedroom houses.
Townsville LGA’s gross rental yields have been stable for some time, ranging between a low of 4.4% (QTR 2: 2007) and a high of 6.2% (QTR 4: 2012) since the first quarter of 2007. Most recently, with median house prices bottoming in 2015, gross yields have also reached a stable low of 5.5% in the third quarter of 2015, dropping by 0.2 percentage points since the fourth quarter of 2014. * The graph above shows the aggregated gross median rental yield of two, three and four bedroom houses.
Vacancy Rates
4810 (North Ward & Railway Estate) & 4811 Postcode (Idalia & Wulguru) Vacancy Rates
The difference in vacancy rates between central Townsville and the 4811 postcode is sad to be driven by a preference for larger, quality detached dwellings over apartment rental options. The 4810 postcode’s vacancy rates remain high due to an oversupply of apartment rental properties at present, particularly two bedroom apartments with 219 two bedroom apartments currently listed for rent (November 2015). Meanwhile, for similar dollar value, prospective tenants are able to rent a quality detached dwelling in the 4811 postcode, still within great proximity to Townsville CBD. Accordingly, the value proposition is clearly in favour of detached properties within the 4811 postcode, which is leading to strong levels of demand as is evident in the currently low vacancy rate shown above.
The difference in vacancy rates between central Townsville and the 4811 postcode is sad to be driven by a preference for larger, quality detached dwellings over apartment rental options. The 4810 postcode’s vacancy rates remain high due to an oversupply of apartment rental properties at present, particularly two bedroom apartments with 219 two bedroom apartments currently listed for rent (November 2015). Meanwhile, for similar dollar value, prospective tenants are able to rent a quality detached dwelling in the 4811 postcode, still within great proximity to Townsville CBD. Accordingly, the value proposition is clearly in favour of detached properties within the 4811 postcode, which is leading to strong levels of demand as is evident in the currently low vacancy rate shown above.

 

Life at the Village
Life at the Village
Life at the Village
Life at the Village