PROPERTY MARKET LOOKING UP
MORE than 40 per cent of residential properties sold at a loss during the March quarter but industry leaders tip the number of profitable sales in Townsville will rise.
Core Logic’s latest Pain and Gain report found that 44.7 per cent of properties sold at a loss in Townsville during the March quarter.
The figure is in stark contrast to the national average of 9.6 per cent, however, the percentage of properties sold at a loss in Townsville is trending downwards after spiking at 47.3 per cent.
The report found that regions such as Townsville, which were linked to the mining industry and had experienced mass job losses performed the worst, but Townsville was showing signs of improvement.
“Although transaction volumes appear to have bottomed in many of these regions, values have generally continued to fall albeit at a slower pace,” the report said.
“Although more than half of all resales in Fitzroy and Mackay were at a loss over the quarter and more than two out of every five resales was at a loss in Townsville and Outback WA, there are signs that in some of the weakest markets condition are starting to improve.”
REIQ Townsville zone chairman Damien Keyes said the high percentage of properties sold at a loss reflected the difficult economic climate in Townsville but he expected the figure to continue trending downward.
“We have seen the volume of sales have been steadily climbing … even slightly is positive,” he said.
“It feels like things are building … and it’s exciting to see confidence coming back with stock tight especially in places like Belgian Gardens, North Ward and Castle Hill because prime locations never go out of fashion.”
Mr Keyes said many of the properties sold at a loss were listed for sale by desperate sellers who had experienced employment woes, including former Queensland Nickel workers.
“But now those stable in their employment or business are really hunting the market for that perfect upgrade property because there has never been a better time to buy and to lock in that low interest rate,” he said.
Harcourts Kingsberry Townsville sales consultant Julie Mahoney recently sold both 154 Francis St in West End and 13 Oxford St in Hyde Park for a profit.
She said the profit and loss figure had been skewed by people in Townsville’s outer suburbs impacted by mass job losses, but the inner city was still performing well.
“The properties that sell for profit usually have good marketing, ( are) are clean and free of clutter, the gardens are beautiful and any renovations done are on point,” she said. Value- retaining suburbs during the last five years: