06 August 2013

LEAD INDICATORS FOR TOWNSVILLE'S PROPERTY MARKET

Herron Todd White's Townsville Rent Roll Survey Report for July 2013 paints a picture of rising rental vacancy rates to 3.75%. The reality of a slowing economy is evident in these figures as Townsville is experiencing a short term oversupply of unit and housing accommodation.

Landlords and investors are advised to factor into their budgets more days on market while their properties are being tenanted. It could also impact on the rental prices in the market as investors compete for lower vacancy time by discounting prices and even offering incentives to customers.
 

Rapid Realty Townsville Principal, Aaron McLeod said "we have planned for a slowing economy by offering higher exposure for our Landlords with feature advertising, more diligent presentation of properties and enhanced focus on "real service, rapid results" in our customer service. Responding quickly to enquiries and receiving owner instructions rapidly is the key to securing desirable customers", Rapid Realty's Principal said.

The increased vacancy rates could be impacted by the supply of new houses on the market continuing while a noticeable drop in demand had occurred leading up to the end of financial year. Lower interest rates on borrowings are making home ownership more affordable, causing some renters to be lured into home ownership by the construction sector offering incentive packages in addition to the State Government's construction home owner's grant.

Rapid Realty's Principal said, "our Townsville office is fielding enquiries from buyers for our newly constructed properties for sale with excellent packages for buyers."

Moreover, Rapid Realty expects the demand for accommodation to increase in August based on seasonal inflows of enquiries to their Townsville office.

If you have an investment property and want expert property management and rentals advice, you can contact Rapid Realty at www.rapidrealty.com.au