Heightened buyer demand has resulted in a surge in house price growth in Townsville, making it the strongest regional market in Queensland.
According to research from Ray White, Townsville has experienced the fastest growth in house prices among regional cities in Queensland over the past year.
The report highlights that Townsville’s newfound popularity is a result of years of depressed prices, with the city’s affordability, lifestyle appeal, and economic development attracting both home buyers and investors.
Ray White Group’s chief economist, Nerida Conisbee, predicts that property prices in Townsville will not fall in the near future. She states that there are no negative factors on the horizon that would impact prices in Townsville or Queensland as a whole.
Conisbee emphasizes that the construction industry still faces significant challenges, and population growth in Townsville remains strong. These factors contribute to the lack of housing supply and support the city’s price growth.
Ray White’s observations reveal that Townsville’s house price growth has increased by nearly $76,000 over the past year, reaching a geometric mean house price of $511,758. This represents the highest price growth among regional Queensland markets in the last 12 months.
While acknowledging the rapid growth of houses and units in Brisbane, Conisbee asserts that Townsville is the strongest market outside of south-east Queensland. The city has even surpassed the Gold Coast’s price growth over the past year.
Townsville’s price growth has outperformed both Central Queensland, which saw a growth of $69,000 to a geometric mean of $488,237, and the Gold Coast, which experienced a rise of $66,000 to a geometric mean of $1,205,579.
Giovanni Spinella, the principal of Ray White Townsville, attributes the consistent growth in house prices to strong buyer demand. He expects prices to continue increasing due to the recent rate cut, population influx, affordability compared to other cities, and significant infrastructure projects in the region.
Despite the significant price growth, Spinella assures that affordability in Townsville has not been compromised, especially when compared to regional cities like the Gold Coast. He believes that demand from buyers will remain strong, citing low supply, high rental growth, and the highest population growth in three years as positive indicators.
