City home values top $ 15b mark

TOWNSVILLE’S residential property is valued at a total of more than $ 15 billion, according to newly released statistics.

The Australian Bureau of Statistics figures show the city’s overall property value rose 13.5 per cent in five years, from June 2011 to June last year, to $ 15.088 billion.

Townsville economist Colin Dwyer said that it was a “consequence of the economy” that the rise in city’s property value was just below the state average of 15 per cent.

Bohle was the suburb with largest growth, with total property value increasing by 129.3 per cent to $ 314 million during the five year period. Deeragun was the second biggest winner, with total property value jumping 66.9 per cent.

Mr Dwyer said new housing developments had led to the property value jump in those suburbs.

“Deeragun is one of the fastest growing places in Queensland. Bohle is quite popular, interestingly it makes it into the top 20 in Queensland,” he said.

Magnetic Island’s residential property value dropped 34.2 per cent and the Northern Beaches fell by 12.8 per cent.

Mr Dwyer said Magnetic Island’s performance was the fifth worst in the state.

“That’s not necessarily a bad thing, it could be opportunity to purchase. You purchase when the market is low to get potential capital gain,” he said.

Keyes & Co Property principal Damien Keyes said the statistics were encouraging.

“Certainly most of the regions ( in Queensland) are facing challenges with the mining downturn,” Mr Keyes said.

“The fact that we’re lagging a bit behind the southeast corner is not such a surprise.”

Mr Keyes said the average Townsville house price was $ 330,000 and he was not surprised by the increases in Deeragun and Bohle. “In the ’ 90s properties were selling for $ 30,000. Now prices are $ 200,000 and the high $ 100,000s in new development land,” he said.

Mr Keyes said Townsville’s priciest property was at North Ward, with average prices around the $ 560,000 mark.

With many infrastructure projects flagged to begin soon, such as the CBD revitalisation and inner- city stadium, Mr Keyes anticipated the average home price would “shoot up past $ 400,000”. “I expect to see over the coming five years a sharper spike than ( the 13.5 per cent increase),” he said.

Mr Keyes said he believed South Townsville, where houses were currently selling for just under $ 300,000, would be “one to watch” and the market at Magnetic Island would trend up soon.

“You don’t go and buy a holiday house when things get tough. When Townsville’s doing really well, the island goes through the roof,” he said. Mr Dwyer shared Mr Keyes’ confidence. “I think with the recent State Budget and the amount of jobs it is expected to create, ( through) the Adani project and stadium, certain areas will see an increase,” he said.