DEMAND ON RISE FOR CITY UNITS MARKET MAKES UP FOR LOST TIME
TOWNSVILLE’S unit market is edging towards recovery following a string of promising apartment sales.
Real estate agents are reporting units in the CBD or city fringe areas are starting to sell for a profit again, oversupply is drying up and high- end stock is starting to move.
Lyn Griffiths and Rohan Banning from RE/ MAX just sold 5/ 7 Mariners Drive, located at the Mariners North complex in the city, for the asking price of $ 1,190,000.
Ms Griffiths said many people doubted they could move the three- bedroom, ground floor unit for a sevenfigure sum but it was quickly snapped up by a Queensland buyer.
“The higher- end stock is now starting to move,” she said. “We had a few cynics in and outside the industry to prove wrong, who said we couldn’t sell it for that price.
“I definitely think the unit market in on the way up and there has been enough sales and inquiries on the higherend stuff that the bottom of the market is behind us.”
Townsville- wide unit prices are edging closer to stabilisation with the latest Core Logic regional update recording a fall in median unit prices of just 0.6 per cent, compared with houses, which dropped by 2.8 per cent. Many industry insiders are tipping widespread price rises could come in the first quarter of 2018.
Knight Frank Townsville managing director Craig Stack agrees the first signs of sus- northwest tainable recovery in residential demand are evident in the inner- city unit market.
He said units were selling quicker than they were six months ago, occupancy levels had increased and the overall market share of sales indicated demand for inner- city units was outstripping demand for suburban units.
“The number of days units are taking to sell is a strong indicator of improved demand,” Mr Stack said.
He said while owner- occupiers dominated the demand for city units above $ 300,000, investors were after units below that figure.
“Investors dominate purchaser activity below $ 300,000 with non- local investors responsible for two out of every three investment sales for inner- city units,” Mr Stack said.
“Out of towners under- stand the pricing in other markets and appreciate the value in our market by comparison.
“We have had a very strong response to units we are selling along Ross Creek and the increased interest since June has been very evident.
“The opening of the universities in the CBD and civil works commencing at the sta- dium site appear to be the catalysts to this interest and The Strand continues to sell itself as an attraction.”
The surge in confidence follows several sales of luxury apartments.
After languishing on the market for months. a penthouse at 5/ 92 The Strand sold for $ 1.4 million in October.