City identified as property hotspot

TOWNSVILLE has been named a hot spot to invest by one of the country’s leading residential real estate experts.

Terry Ryder has been a specialist researcher and writer on residential property for more than 30 years and founded Hotspotting. com. au, which identifies future well- performing property markets.

He said Townsville was gearing up for a growth period.

In a column on Sydney website Property Observer, Mr Ryder said Townsville’s diverse economy, history of strong property growth and fast- growing population made it a good investment choice.

“The North Queensland city has had a lot of negative publicity recently and you wouldn’t buy there on the current numbers,” he said.

“But I rate locations on their future prospects, often in defiance of the current situation, to alert investors to areas poised for growth. Townsville is a classic case.

“With so many large- scale projects in its future, Townsville is poised to return to growth and tuned- in investors will be looking around.”

Education facilities including James Cook University, the tourism industry, the port, the Adani coal project and Waterfront Priority Development Area were listed as attractive to potential investors.

Mr Ryder said Hotspotting expected Townsville to have a revival in 2017, with the residential property market starting to stabilise despite some suburbs remaining in decline.

“Its property market had a run of strong annual growth up to 2011 and … is ready to resume its forward progress,” he said. “Its comeback will be boosted by major events, including retail projects, CBD commercial and infrastruc- ture spending. It is also receiving economic impetus from the expansion of its military economy and will benefit from the $ 22 billion Adani mining project.”

REIQ Townsville Zone chairman Damien Keyes said the region’s value for money was attracting investor interest locally and interstate but suggested significant growth may not happen in 2017.

“This phase in 2017 I feel will be a period when investor interest will start jumping up and that demand at some point will drive prices up,” he said.

“Two of our four quarters last year were positive in terms of growth but only by the slightest margin and we still finished the year on a negative.

“I think this is year is going to be a recovering and rebuilding phase and you have to see that before you see any real growth.”

Mr Ryder said the mining sector and Adani would bring benefits to Townsville.

“Townsville will thrive on the Adani coal project, which will have its HQ in Townsville, if the miner’s undertakings are kept,” he said.

“But nothing is certain in the resources sector and Townsville may have to fight to maximise the benefits because other regional cities can sniff the opportunities.”