Re­gional mar­kets set for re­vival

Many cities are hav­ing a turn­around and that means there are good buy­ing op­por­tu­ni­ties in those ar­eas but you may need to act fast, Michelle Hele says...

Sold On Sunshine Coast - - Market Review -

RE­GIONAL Queens­land prop­erty mar­kets are start­ing to make a come­back as the flow-on ef­fects from the re­sources down­turn fi­nally start to ease.

In re­cent years many of the state’s re­gional cen­tres dom­i­nated lists of ar­eas where in­vestors shouldn’t park their prop­erty dol­lars as val­ues dropped and va­cancy rates sky­rock­eted.

But that has all started to turn around now, ac­cord­ing to prop­erty an­a­lyst Terry Ry­der of Hotspot­ting.

He said for the past sev­eral years re­gional towns with economies fo­cused on re­sources or tourism alone had strug­gled. Many were fre­quent en­trants in his No Go Zones re­port, which listed the ar­eas not to in­vest in.

In a sign of steady im­prove­ments across the board, his lat­est re­port does not warn against in­vest­ing in any of Queens­land’s re­gional towns.

Out­side of south­east Queens­land, Townsville was the mar­ket Mr Ry­der liked best.

“If you look at the cur­rent sta­tis­tics it looks quite unattrac­tive be­cause va­can­cies are still a bit high and in the last 12 months there has been prices go­ing back­ward, but we are al­ways look­ing to the fu­ture and Townsville has got ab­so­lutely mas­sive things com­ing up in its near fu­ture,” he said.

Mr Ry­der said there were ma­jor in­fra­struc­ture and prop­erty de­vel­op­ments un­der way and the econ­omy had evolved with the ex­pan­sion of the ed­u­ca­tion sec­tor.

The mil­i­tary econ­omy was an­other big ben­e­fit to Townsville.

“As the re­sources sec­tor con­tin­ues its re­vival, a num­ber of ma­jor en­ter­prises are bas­ing them­selves out of Townsville and seek­ing fly in-fly out work­ers from Townsville, so it is go­ing to get a boost,” he said.

There had also been a re­vival in the prop­erty mar­kets in ar­eas in­clud­ing Mo­ran­bah, Glad­stone and the towns of the Su­rat Basin.

“Many projects that were on the back­burner are now be­ing brought back on line and new projects are be­ing pro­posed,” Mr Ry­der said.

“We are see­ing an in­crease in sales ac­tiv­ity in re­gional cen­tres like Mackay and Emer­ald, Dalby ... even Mo­ran­bah has had a big uplift in sales in the last six months and va­can­cies in many of those lo­ca­tions have been drop­ping steadily.

“Glad­stone two years ago had a 10 per cent va­cancy, and it has been steadily de­clin­ing un­til right now it is prob­a­bly around about 4 per cent. So it’s still a bit high, but it’s not far off the point where va­can­cies will be back to ac­cept­able lev­els and rents and prices will start to rise.”

Mr Ry­der said in­vestors still needed to be a lit­tle care­ful with th­ese re­sources-re­lated mar­kets, which were al­ways a bit volatile and high-risk, but the worst was over for them.

“Any­one who owns prop­erty in places like Glad­stone, Mackay and Dalby can look for­ward to bet­ter things and some growth in com­ing years.”

A fresh wave of in­ter­state mi­gra­tion has helped drive de­mand on the Sun­shine Coast.

Real Es­tate In­sti­tute of Queens­land fig­ures re­veal Noosa was the state’s top per­form­ing mar­ket in the three months to Septem­ber, record­ing an­nual house price growth of nearly 10 per cent.

Dur­ing the past five years, Noosa’s me­dian house price has jumped by more than 40 per cent.

Tom Of­fer­mann Real Es­tate prin­ci­pal Tom Of­fer­mann said the com­pany ended 2017 with eight sales av­er­ag­ing $5.9 mil­lion each.

And he pre­dicted the mar­ket would now con­tinue to im­prove with Noosa the stand­out per­former.

The agency sold a sprawl­ing water­front home with a drive-through boat­shed, two jet­ties and a boat ramp at 29-31 Wyuna Dr, Noosav­ille, for close to $11.9 mil­lion late in 2017 – a record for the area.

“It’s not just the pres­tige prop­er­ties that buy­ers are tar­get­ing,” Mr Of­fer­mann said.

“There are good op­por­tu­ni­ties for buy­ers at all lev­els who want to in­vest or live here.”

Ac­cord­ing to the lat­est CoreLogic Pain and Gain re­port, the num­ber of loss-mak­ing sales in Queens­land’s re­gional ar­eas has slowed.

In the Septem­ber quar­ter, 92.6 per cent of houses and 90.2 per cent of units in re­gions sold for more than the own­ers paid for them.

Ip­swich was an­other re­gion that be­gan to show im­prove­ments in 2017 and was tipped to con­tinue im­prov­ing.

In the past 12 months the re­gion recorded 3731 house sales and 603 unit sales.

Ac­cord­ing to CoreLogic its me­dian house price has moved into pos­i­tive ter­ri­tory again, up 0.9 per cent in the past quar­ter to $343,000. The me­dian unit price also in­creased by 0.7 per cent to $377,500.

In the Septem­ber quar­ter 85.6 per cent of prop­er­ties sold in the Ip­swich coun­cil area sold for more than their own­ers paid for them with a me­dian profit of $63,500 and a to­tal profit within the coun­cil re­gion of more than $51 mil­lion.

Fur­ther north the Fraser Coast chalked up 2410 house sales and 319 unit sales in the past 12 months.

The me­dian house price dropped slightly, down 0.8 per cent to $320,000, while the me­dian unit price rose 3.6 per cent to $259,000.

In Gympie there were 1070 house sales and 70 unit sales in the past 12 months.

The me­dian house price rose in the past quar­ter by 1.6 per cent to $310,000 and the me­dian unit price was up 4.3 per cent to $240,000.

Bund­aberg had 1438 house sales in the past year and 178 unit sales. Its me­dian house price rose 0.2 per cent in the past quar­ter to $295,500 and me­dian unit price rose by 0.4 per cent to $247,000.

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