Better days are coming

first_imgCameron Kusher Senior Research Analyst RP Data SuppliedTOWNSVILLE’S sale volumes have taken a tumble but demand for property is expected to increase as job-generating projects start in the region.CoreLogic’s June 2017 Regional Market Update released earlier this week shows the number of homes sold across the region had been falling since 2014 while sales activity was 9 per cent lower than May 2016.Up to May 2017, 3164 dwellings were sold, 14 per cent below the five-year average for Townsville.A total of 85 per cent of sales were houses and 15 per cent were units.CoreLogic research analyst Cameron Kusher said he expected sales volumes to improve in the near future.“It can be a function of low demand or low stock and I suspect it’s low demand but with some of these projects being announced that could see a bit of a pick-up in sales activities,” he said.More from news01:21Buyer demand explodes in Townsville’s 2019 flood-affected suburbs12 Sep 202001:21‘Giant surge’ in new home sales lifts Townsville property market10 Sep 2020Projects such as the North Queensland Stadium, Adani Carmichael coal mine project, Singapore Defence deal and MMG’s Dugald River zinc mine are expected to have a positive impact on residential property prices in the near future. Median house values have dropped by 3.1 per cent up until June 2017 or just under $10,000 in dollar terms, while units fared worse, recording a 4.5 per cent drop in values.Mr Kusher said while the market update painted a bleak picture for Townsville, it had fared better than other regional markets.“When you look at some of the projects coming up in Townsville things are starting to look better than what they have in a while,” he said.“Townsville is certainly not as bad as some of the other regional markets, such as Mackay or Gladstone.” Townsville’s rental market is also weak with rental rates for houses dropping to an average of $310 per week compared to units, which dropped 6.8 per cent to $275.Mr Kusher said the unit market across Queensland was struggling.“Even Brisbane and the Gold Coast are seeing under-performance in units,” he said.“It’s reflective of what we are seeing right around Queensland.”last_img