Sales top $445m in year of demand

THE industrial and retail markets led a huge year in commercial property sales in the city in 2021-22, according to Colliers’ Townsville Market Snapshot report.

The report finds more than $445m in sales occurred, an increase of close to $200m on the previous financial year.

The total value by sector was: Industrial $167.1m, Retail $130.6m, Office $47m, Service Stations $25.1m, Accommodation & Hospitality $22.6m and Other $54.1m.

Colliers Townsville managing director Peter Wheeler said it was one of the busiest periods they had seen with record low interest rates and high capital city prices pushing investors into the regions.

“Townsville’s economy has been going well, so the region has been able to capture a lot of this interest,” Mr Wheeler said.

In industrial, the number of sales was up 9% to 99, while sales value was up 65%. The median price was up 55% to $960,000, while the largest sale was for a 14,670sq m warehouse in Shaw netting $28.2m.

The report says demand shifted to larger industrial properties in 2021-22 with the biggest growth in the 4000sq m to 5000sq m bracket.

In commercial, including office, retail, accommodation and hospitality, the number of sales was up 58% to 106 and sales value was up 78% to $280m. The median price was up 30% to $1.1m.

The report says the office market saw higher turnover but with predominantly lowerpriced properties changing hands. As a result, sales value was $47m, down from $71m in the previous year.

It says retail property activity continued its considerable post-covid growth with sales of $130m, close to triple the level of the previous financial year. The report says interest in Townsville’s overall commercial property market remains strong but is likely to slow in the short to medium term.