Townsville could see ‘double-digit’ property growth due to ADF restructure, supply
Townsville, the new capital of the Australian Army, could see a ‘double-digit’ property price increase over the next 12 months due to Australian Defence Force movements and restricted supply, according to real estate experts.
The North Queensland city is already home to more than 4500 ADF personnel with crucial military installations at Lavarack Barracks and Royal Australian Air Force Base Townsville. That number has previously been announced to move upward with another 500 personnel from 2025 as part of ongoing defence restructures.
ADF Property Podcast host and Discover Buyers Agency director Kane Dury, speaking exclusively with Defence Connect, confirmed the city could see a ‘double-digit’ rise in property prices.
“Just as a (Townsville) region, there’s extreme shortage which means there are multiple offers going in on every purchase. A lot of purchases are done off market and the general property buyer can't even see those listings through the major portals,” he said.
“If we look at some data it’s done a lot of growth already but in saying that, there are 500 families going there in the extremely low supply environment, there’s potentially to have another double-digit year (10% or above property price increase).
“With those 500 postings a lot of those are families. For the person being posted to Townsville, whether they’re male or female, if they’re older then obviously they’ve got a spouse and children. They would require a three or four bedder (house), not just a unit for the single member. So, it's just putting an extra demand on an already restricted supply in the market.
“It’s a hot area, an area where it's going to be difficult to buy into because of the increased competition.”
Townsville will be a ‘new capital’ for armour and infantry units, as well as the majority of the CH-47F Chinooks and AH-64E Apaches fleet.
“(If Australian Defence Force personnel are considering buying) they just need to probably have a plan of attack of how they're going to go about it. So, they'll need to get someone on their side, not necessarily like a buyer’s agent but obviously that would be top of the list,” according to Mr Dury.
“A local sales agent will help them buy and maybe open up the avenue for those off market sales that might have five or ten offers on.
“Most of the properties that are selling with the standard sort of four-bedroom house, two bathrooms and a desirable suburb - They're selling with 12 or 10 offers on them, and that is a lot. I'm talking in the first week with that many offers… it's a very high-pressure market that has a lot of off the online house sales going.”
Australian Deputy Prime Minister and Minister for Defence, Richard Marles, speaking to ABC North Queensland earlier this year, said options are being considered regarding accommodation in Townsville.
“Around Australia there are options for Defence Force personnel to pursue their own accommodation through the normal rental market and there is assistance that we provide Defence Force personnel to do that,” he said.
“It’s a combination of what Defence Housing Australia puts in place, what we have on base in terms of barracks, and then people accessing the private rental market themselves with the appropriate supports that we provide them. And that's the case around Australia.
“Through all of that we are confident that we will be able to meet the challenge associated with the growing numbers that we'll see over the coming years in Townsville.
“It is small numbers that are coming in at any moment in time. It's a very gradual process, but it is going to, you know, over a few years it will be a significant number of people who do come.
“And that's going to be really good for Townsville. It'll be great for the Townsville economy. But we're also making sure that we are meeting the housing challenge for the future personnel as well as those who are currently serving in Townsville.
“I’m confident that we're meeting the needs of Defence Force personnel who are in Townsville right now. And while we do acknowledge that there is a challenge going forward, it's one that we're confident that we're going to be able to meet.”
The Deputy PM has previously announced that more than 1200 house would be constructed through Defence Housing Australia, with another 400 houses through DHA and through leasing arrangements over ‘a number of years’.