In common with
its North Queensland neighbours, Townsville property
came under pressure through the GFC due to the slowdown
in demand for resources, reduced construction activity,
and lower levels of tourism.
As a consequence, Townsville property did not reflect
the major growth of Australian capital cities through
2009. It is therefore lagging in the property cycle,
which of course offers potential benefit to astute
investors who are looking for investment property
alternatives to the major cities.
The fundamentals for Townsville investment property
remain sound, and have led to prices of land increasing
by over 33 per cent since 2006.
A report in the Townsville Bulletin dated 23 March
2010 quotes the Housing Industry Association North
Queensland executive director John Futer as saying
increase reflected a range of factors set to push house
prices to record heights.
Mr Futer said “A shortage of skilled labour, shortage
of land, charges on developers and government requirements
for energy efficient homes all conspired to drive house
prices sky high.”
The report also quotes recently released statistics
from Australian Property Monitors forecasting exceptional
growth in Townsville property prices for the next 10
years. The statistics show that by 2020, the average
price of a home in Mount Louisa would be $1,223,048 – more
than three times the 2009 average of $391,000.
Since the last valuations in Townsville in 2006, residential
property values increased by 33 per cent and commercial
property values increased by 32 per cent.
Townsville investment property looks set for a continued
strong run, with the balanced nature of the local economy
providing it with the resilience to come through the
turbulence of 2009 in relatively good shape.
|
