Booming market: Townsville leads regional Qld with fastest-growing house prices
Heightened buyer demand has seen house price growth surge in Townsville over the last 12 months, becoming Queensland’s strongest regional market.
Research from Ray White has revealed that Townsville’s house prices have grown the fastest among the regional cities in Queensland over the last 12 months.
The report noted that Townsville’s surge in popularity has come after years of depressed prices with the city’s affordability, lifestyle appeal and economic development attracting both home buyers and investors alike.
Ray White Group’s chief economist, Nerida Conisbee, said there were no factors that suggested that property prices would fall in Townsville in the near future.
“There is nothing on the horizon which will affect prices negatively in Townsville, or all of Queensland.”
“The fact is we are not building enough here. There are still big issues in the construction industry and population growth is strong,” Conisbee said.
Through this surge in interest, Ray White observed that Townsville’s house price growth rose by almost $76,000 over the year to a geometric mean house price of $511,758, representing the highest price growth across regional Queensland over the last 12 months.
While Conisbee acknowledged that houses and units have increased at a rapid rate in Brisbane, she said Townsville was the strongest market outside of south-east Queensland, and saw the city trump the Gold Coast’s price growth over the last 12 months.
Townsville’s price growth eclipsed both the growth of $69,000 over the year in Central Queensland to a geometric mean of $488,237, and the $66,000 rise in Gold Coast to a geometric mean of $1,205,579.
Ray White Townsville principal Giovanni Spinella said that house prices have been growing consistently in the area and had been driven by strong demand from buyers.
“I expect Townsville’s house prices will keep increasing this year, spurred on by the first rate cut in four years plus population influx, affordability compared to other cities and significant infrastructure projects commencing in the region,” Spinella said.
Even with the significant price growth in Townsville, Spinella said it had not diminished affordability within the city and doesn’t expect buyers’ demand to slow down.
“Despite the upward trend, Townsville remains relatively affordable, especially when compared to regional cities like the Gold Coast, where the mean house prices exceed $1.2 million,” he said.
“We’ve got the lowest supply we’ve ever had, the highest rental growth and we’ve got the greatest population growth in three years. That’s three positive signs demand will continue,” he added.