Construction demand builds
CRANES which have long been absent from Townsville’s skyline are set to make a return in 2018 as developers take advantage of improved economic conditions, property agents say.
While construction is under way on the North Queensland Stadium, other projects include the Geon Group’s The Hive and Weststate Private Hospital developments.
Also, a request by the Australian Taxation Office for new space in Townsville could prompt the development of a new building if it decides to relocate from the Stanley Place tower.
Knight Frank managing di- rector Craig Stack said the purchasing of property for investment had been a feature of the deals in Townsville in 2017.
But he said new development or the redevelopment of well- located sites could be more prominent in 2018.
Mr Stack said an example of this was The Hive project, where the Geon Group was looking to redevelop a block bounded by The Strand, King, Wickham and Flinders streets in the CBD.
“It’s likely we are going to see more of that type of activity in 2018,” Mr Stack said.
Top- priced property deals in Townsville in 2017 included the sale of the River Quays office building in South Townsville, The Precinct shopping centre in Idalia and the Woolcock St Supa Stores in Currajong.
Mr Stack said the River Quays sale was an example of an investment deal where the buyer was attracted by the good returns from a building leased to national and international tenants.
Knight Frank was involved in leasing space in the building to India’s Adani group and international engineering group Aecom.
“We have leased up about 4000sq m in the building,” Mr Stack said.
“The sale of that building shows the impact of high occupancy.
“You get good reaction from investors when there is a strong income stream.”
The 9400sq m of office space in River Quays generates about $ 2.6 million in annual rent with just 340sq m available for lease after the building sat largely vacant in recent years.
Mr Stack said the sale of a Stuart warehouse leased to Bridgestone Earthmover Tyres was another example of a property with a strong lease profile selling to investors.
The Doyle St warehouse, which Knight Frank sold last year for $ 4.5 million, had a strong tenant with good prospects for trading, given the recovery in the mining sector, he said.
Mr Stack said investment consideration in Townsville was strong.
“Where you can show there is a good income stream, Townsville is viewed as strongly as anywhere in Australia,” he said.