Townsville on the road to recovery with rise in house values
Townsville is finally on the road to recovery after several years of struggle.THIS week saw a few major milestones for Townsville’s property market materialise after years of desperate struggle. The latest figures from property data provider CoreLogic shows median house values grew 3 per cent over the past 12 months, while the city’s median unit price grew a whopping 11.7 per cent in value.MORE NEWS Double-digit surge in unit values Spring housing boom predicted Since the data was released, I’ve been inundated with questions from media outlets and members of the public inquiring about the apparently surprising or unexpected results. The clincher is these results are nothing but they’re long overdue as well as a natural follow up to the first market increases in residential house prices during the March 2020 quarter.So, what do these statistics mean for buyers and sellers right now? As a buyer, Townsville continues to be one of the best-value offerings across Australia with an incredibly low buy-in price at an average of $230,000 for units and $309,000 for houses. More from news01:21Buyer demand explodes in Townsville’s 2019 flood-affected suburbs12 Sep 202001:21‘Giant surge’ in new home sales lifts Townsville property market10 Sep 2020REIQ Townsville Zone Chair Ben KingsberryThis offers rental returns of about 6 per cent gross. These are figures the rest of Australia is finally beginning to take notice of. The attractive figures combined with the allure of record-low interest rates has led to an increased number of out-of-town investors beginning to enter the market.This means recovery is just around the corner, and your chance to secure your dream property at today’s prices is really on borrowed time. The question now is how long will the lingering effects of COVID-19 keep a lid on the pre-loaded growth that’s inevitable? Remember, once the recovery hits, competition will spike and the power to negotiate will swing back to the seller.Speaking of which, for sellers I believe growth is inevitable and somewhere around the corner.Again, the only question is when? My advice to sellers is this, if you’re in the market as a long-term investor with no intention to sell in coming years, hold on to your property because growth is likely to come. If you’re approaching the decision to sell in the next 12-24 months, it’s a great idea to speak to an REIQ-accredited agent about going to market soon while activity and positivity remains high. If you’re three to five years away from making a decision, all bets are off and your guess may be just as good as mine.