Property News

Clearance rates up in Townsville

28 September 2006

Strong house and unit sales activity in Townsville and Thuringowa, growth in population and continued interest from investors is driving the residential property market in the Townsville region. According to research by Colliers International, the market remains strong and clearance rates are robust.

Colin Dwyer, Director of Research & Consulting at Colliers International's Townsville office, said, based on information for the June quarter, Townsville's clearance rate is 68.5%; Thuringowa's is 60%, and the overall region is 64%.

"Dwelling sales have increased by 16.6% compared to last quarter and by 17.8% compared to the same quarter last year. According to REIQ data, house sales trends in Thuringowa have increased 13.6% over last quarter and Townsville unit sales trends were up a remarkable 60% for the same period," said My Dwyer.

"The Townsville market is being influenced by a variety of factors including high income earners and population growth. This means REIQ trend data for the financial year 2005/06 should reveal that demand in the local residential property market is close to record levels," he said.

"Interestingly cane farmers would have received their sugar payments in February of this year, probably paid their bills and some would have invested in tax reducing opportunities like Townsville and Thuringowa residential property."

"With residential vacancy rates around 1.8%, property is a strong choice for high income earners to invest in and reduce their tax liability," Mr Dwyer said.

Seasonally strong population migration was another strong influence on the Townsville market, with an estimated 1130 people moving into the region (excluding natural increase) in the June quarter.

Mr Dwyer said this would have contributed to the boost in dwelling sales.

"Finally, with a new battalion arriving in 2008, bringing an estimated extra 3750 people to the region (800 soldiers, 700 support plus family) and continuing job opportunities, the future looks strong for owners and investors in Townsville and Thuringowa's property market," he said.