Property outlook good

TOWNSVILLE’S property market is expected to stabilise in 2018 as sales volumes increase and rental vacancy rates continue to tighten.

Prices are not predicted to fall any further with most agents in agreement that Townsville’s residential market has bottomed out.

The number of residential properties being sold is expected to rise which could result in prices increasing in the second half of 2018, however, doubledigit price growth is unlikely.

Propertyology managing director Simon Pressley said now was the time to buy in Townsville before price growth began.

“Short of a significant leftfield economic event we would be guaranteed of a significant increase in sales volumes,” he said. “As you create more jobs you stand a chance for people to relocate and there are plenty of places in Australia doing it tough.

“The best buying time is in anticipation of growth starting which is now because we might not see really exciting price growth until 2019 or the years following that.

“The people that are really going to benefit from Townsville’s future price growth will probably be people who buy in 2018.”

Mr Pressley said while he expected rental vacancy rates to continue a downward trend, it would be some time before rental prices increased.

“Before you see rent prices increase, vacancy rates need to be between 1.5 and 2 per cent and that may not happen in 2018,” he said.

Vacancy rates in Townsville are sitting at 4.3 per cent but they will need to drop to 3 per cent before Townsville’s rental market is no longer seen as weak. The latest Core Logic data released in December shows that in the last 12 months median house prices dropped 1.4 per cent to $ 340,000 while there was no change in the last three months.

Units fared worse dropping by 9.1 per cent in the past 12 months to $ 250,000 but also recorded no change in the last three months.

Ray White Geaney Property Group owner Ella Geaney said there was some promising signs 2018 would be a better year for Townsville’s property market with the northern beaches recording strong sales.

“I think we have already started seeing some improve- ment moving into 2018 which is backed up by the contracts we’re seeing and amount of people coming through our open homes who are making offers,” she said.

John Gribbin Realty principal John Gribbin said he also expected the property market to improve in 2018 but Townsville needed more permanent full- time jobs for long- term price growth to be sustainable.

“We’re going to see the market improve but we do need substantial employment,” he said.