Surprise recovery in unit market
TOWNSVILLE’S house market has remained subdued for the past 12 months, with the annual median price falling 3 per cent to $ 325,000, the latest real estate statistics show.
In contrast, the unit market performance improved for the past year as the annual median unit price increased 5.7 per cent to an annual median of $ 280,000.
The figures were included in the Real Estate Institute of Queensland’s just released March Quarter Queensland Market Monitor for Queensland as well as for Townsville.
The REIQ Market Monitor report said the December quarter increase in the volume of unit sales in Townsville and the annual fall in listings had been a couple of the drivers for the unit price recovery.
“Locals have noted an improved sentiment in the region as the large infrastructure projects like the North Queensland Stadium continued construction,” the report said.
“However, more infrastructure and business investment is needed to support job creation and the recovery of the regional economic fundamen- tals. The Townsville house market is a falling market.
“Units have reported a surprise recovery this year.
“However, their outlook remains challenged.”
The report said the future of the housing market was largely correlated with the improvement of the regional economic fundamentals, particularly the labour market.
“However, affordability is supporting the current increase in demand for houses and units,” the report said.
“House market indicators, such as days on market and vendor discounting, all indicate a market on the improve.
“Days on market have come down from 70 days in 2017 to 62 days in 2018.
“Vendor discounting has moved from 8.4 per cent to 7.4 per cent, which indicates houses are selling faster and vendors are discounting less to close the sale.”
REIQ media and communications manager Felicity Moore said the REIQ was optimistic about the Townsville market through 2018.
“We’re confident that buyer demand will strengthen and prices will improve and move this market towards a recovery phase,” she said.