Industry leads sales boom
TOWNSVILLE’S industrial sector is leading a booming property market as investors and construction firms nail down key sites, according to Colliers Townsville.
The firm has released its Townsville Market Snapshot report showing industrial property has led the way with total sales jumping 50 per cent to $101.7m in 2020-21.
Colliers Townsville managing director Peter Wheeler said record low interest rates were driving the property market, creating the strongest surge in activity in Townsville in 20 years.
But industrial property was also favoured because of the impact of Covid-19 and strong demand driven by residential building, mining and major projects.
“The market is the hottest I’ve seen since the introduction of the GST,” Mr Wheeler said.
“Last year we saw a turnaround start to take place and this report shows that far from being a flash-inthe-pan, that momentum has continued.
“There’s still a high level of demand from investors and owner-occupiers and, with less available properties, we’re now seeing upward pressure on prices.”
Mr Wheeler said that with Covid-19 impacting on the retail and office sectors, industrial property was more popular and outperforming both those sectors combined.
The strongest growth in the industrial market had been in Mount St John, comprising about 13 per cent of all sales, and in deals valued at between $3m and $10m, although there had also been strong growth in the lower end, up to $1m.
“The low cost of borrowing is creating new opportunities for a lot of people to get into the market,” Mr Wheeler said.
“In addition to ongoing strong national inquiry, we’ve seen a lot more interest from local and regional investors who see the potential in Townsville’s economy and want to invest.
“The market outlook is strong right now – population growth has flourished through Covid, mining employment is growing, and there’s a lot of big projects in the pipeline, some of which aren’t just about the current economic climate, they’ll transform Townsville’s future.”
Projects include the $232m port expansion, the $107.6m Townsville Northern Access Intersections Upgrade and the $924m Genex Kidston pumped storage hydro and Genex Kidston Connection projects.
Mr Wheeler said that the report highlighted a concerning decline in the CBD.
“Retail and hospitality property sales have dropped in the city centre, while performing strongly in central suburbs, both on the CBD fringe and around Aitkenvale,” he said.
“This has demonstrated that the job of CBD revitalisation is not finished.
“We especially need to see some leadership on getting more residents into the city and a focus on a continuing pipeline of events for our stadium, if we want to achieve a vibrant and sustainable city heart.”