Investors buy up with Townsville City apartments the cheapest in over a decade
APARTMENTS in Townsville’s CBD are the cheapest they’ve been in over a decade and investors are buying while prices are low.
Corelogic data shows that in the year leading up to March, prices for units in Townsville City dropped 20 per cent.
The median price for a unit in the CBD is now $300,000 — ten years ago they were selling for $487,000.
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Carmen Bow and her husband Russell Bow, recently bought an apartment in Townsville City to be an investment property, on the back of low prices and Townsville’s expected economic growth.
“We definitely bought it for it’s cheap price and because we could see the positives coming to the economy with the new stadium and other projects happening around town,” Ms Bow said.
“We bought it as an investment and we are currently renting it out.
“We’re very pleased with the returns on it and are expecting to sell it in the future for more than we bought it for.
Propertology Head of Research, Simon Pressley said the outlook for Townsville’s property market was very healthy but said houses will have more potential for capital growth than apartments.
“On a house price to population size basis, Townsville is the clear winner as Australia’s most affordable real estate market,” Mr Pressley said.
“On a pure affordability basis, it’s streets ahead of every city in the country.
“From an apartment perspective, for there to be any potential of matching the capital growth rates of Townsville houses, it must have a 3-4 bedroom, 2-bathroom configuration, be within a small boutique complex, and offer spectacular views … Even then, the price must compare favourably to detached houses.”
REIQ regional director Damien Keyes said he had seen a lot of out of town investors interested in buying apartments in the CBD.
“I’ve had a lot of investor inquiry recently for apartments in the area,” Mr Keyes said.
“I’m currently marketing a unit on the Strand and I’m getting a lot of out of inquiries from out of town investors looking to buy with the idea of using it as a short term rental.
“We are seeing more affordable apartments get attention and investors are definitely starting to rear their heads.”
John Gribbin Realty Agent, Sibby Di Bartolo, said he’s seeing owner occupiers looking to downsize and people wanting the city lifestyle buying in the CBD on the back of low prices.
“I think the prices are a reflection of the overall market condition, but in saying that the CBD is doing a lot better than the suburbs,” Mr Di Bartolo said.
“It is great value and buyers are definitely taking advantage of the low prices at the moment.
“I’m seeing a lot of owner occupiers buying now and people looking to downsize but I think investors will start moving into the market more post stadium completion.”
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