House prices turn tide

TOWNSVILLE’ S property market is on the move, with the city’s median house price jumping by 4.6 per cent to $ 345,000 and vacant land up 13.8 per cent to $ 169,500.

The Real Estate Institute of Queensland’s latest quarterly market report also shows rental vacancies are down from 7.1 per cent in September to 6.4 per cent in December, while gross rental yields have remained steady at an average of 4.4 per cent for houses and 4.9 per cent for units.

Townsville recorded the largest median house price change in the December quarter across Queensland.

REIQ CEO Antonia Mercorella said Townsville’s property market had a buoyant final quarter for 2016, with the city expecting to see further increases in the year ahead.

“The area is set to benefit from considerable infrastructure and government spending programs, including the $ 250 million football stadium and planning for the $ 1.6 billion Port of Townsville ( expansion) project, which will help employment figures and stabilise business confidence,” she said.

“The unit market held steady this quarter at $ 260,000 and, while there was zero growth this quarter, there was also zero contraction.

“Unfortunately, the market has contracted 4.3 per cent over the year and, compared with five years ago, has contracted 16.2 per cent.”

McGrath Estate Agents principal Brad Matheson said he believed Townsville had passed the bottom of the price cycle and predicted further increases in home values were on the cards this year.

“The year has kicked off very strongly and I think the market has finally bottomed and won’t fall any more, which is a direct result of improved buyer confidence,” he said.

“In the first two months of 2017, our team alone recorded four off- market sales and three of our properties sold above list price with multiple offers for these sought- after homes.

“One of them was a beautifully styled property in Vincent which received five offers within the first week and sold $ 21,000 above the list price.

“Open house numbers have also doubled to what they averaged last year and we’ve found that the 4810 postcode has been particularly active, with a lot of properties selling in under two weeks.”

REIQ Townsville zone chairman said Damien Keyes said people from all walks of life were buying into the market.

“We’re seeing a real good cross- section of people buying. We’re seeing more first- home buyers in the established housing market but there are also downsizers, home buyers that are upgrading and a lot of renovators,” he said. “In that sense it makes sense that the older, fringe suburbs are popular.”