Homebuyers are being encouraged to invest in the Townsville property market, with a recent market analysis finding there was plenty of bang for buck in the North Queensland city.
The latest Todd Herron White Month in Review predicted the residential housing market would likely remain strong across the country despite the current financial climate.
Kevin Brogan, Herron Todd White national director of group risk and compliance, said property prices and rents had increased across many markets since 2020.
“Despite a global pandemic and economic uncertainty, residential property has proved to be a solid asset – whether as a home or investment,” he said.
“The key is always to choose your real estate based on solid fundamentals and sound independent advice.”
In the June Month in Review, Townsville valuer Jamie Martin said in general the Townsville market was strong with good opportunities for investment.
“Given the scarcity of inner city and rural residential properties, these markets represent the best opportunity for short-term growth,” he said.
“The inner-city market has historically been the more resilient of these two markets should there be any downturn in the future.
“The impacts of any downturn in the market tend to be felt more in the Townsville rural residential market.”
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Mr Martin said a buyer with a $750,000 budget could expect to lock down a property in the lower end of the inner city market, something around the median price point in city fringe locations and a premium property in the outer suburbs, excluding the rural area.
“Within a number of the outer residential suburbs, $750,000 would allow investors to purchase two roughly 10 to 15-year-old dwellings that would rent for about $420 per week,” he said.
“For example 10 Medici Drive, Kelso, which was purchased in February for $350,000, (or) 16 Noscov Cres, Kelso, which was purchased in March for $302,500.
“This is a circa 2005 three-bedroom, one-bathroom home with single lockup garage, which has recently been listed for rent for $410 per week.
“Properties like these in the outer residential areas have been selling strongly in recent times, with buyer profiles being investors and current renters trying to purchase a home to escape the rental market.
“The competition between these two types of purchasers is helping to maintain steady growth in this market sector.”
Gary Brinkworth, Herron Todd White CEO, said Australia’s residential property market would likely remain strong despite the challenging fiscal circumstances being felt across the country.
“Monthly increases in interest rates along with scrutiny around inflation saw commentators waiver on whether we are past the worst of the downturn or should instead prepare for more challenges,” he said.
“While the public has become somewhat accustomed to unrelenting change, the last two rate increases by the Reserve Bank may prove to be the most significant.
“We’re hearing commentary about a looming recession, even if it’s short-term and ‘technical’.
“While residential property prices should continue to prove resilient, I think the ramifications of what’s now occurring will be most dramatic in the commercial property sector.”
Originally published as Plenty bang for buck left in NQ property market
