22 September 2014

Rising Property Prices Stumble; Snapshot of Townsville Real Estate June2014

The Townsville property market has experienced an increased median house price across the City since the same period last year up to June 2014, stimulating a modest recovery in a sustained challenging market.

Although the Townsville median unit price has dropped by 1.2% to $266,000, the median house price has increased by 3.5% to $343,000.

A total of 4175 dwelling sales have occurred to May 2014. Of the total number of dwelling sales in 2013-14, 82% are houses and 18% are units sold in the greater Townsville area. The volume of sales have reduced from the previous year by 1% and 3% below the 5 year average.

With a median house price of $343,000, over a 5 year period house prices have reduced by 0.7% demonstrating the housing market has experienced steady house prices for an extended period. 

Calculating the median house price with the median rental price at $360 per week, the indicative gross rental yield sits at 5.4%.

Vendors have been experiencing challenging times with prices being discounted by 8.0% and the time on market sits at approximately 92 days.

While houses have improved in value over the past 12 months, unit median prices have reduced in the same period. But most notable is the median unit price reducing over the past 5 years by 12.2%, demonstrating a material impact from an increased cost base for strata unit owners.

Townsville Real Estate Blog reported in 2013 the "North Queensland Strata Unit Market in Eye of Perfect Storm".
http://townsvillerealestate.blogspot.com.au/2013/12/north-queensland-strata-rental-market.html

Vendors have discounted their sale prices by nearly ten percent at 9.6% with a higher number of days on the market at 127.  With a median rental price of $325 per week, units have produced an indicative gross rental yield of 6.2% in the same period.

Further reading;
Boom or Bust? Factors Impacting the Townsville Real Estate Market
http://townsvillerealestate.blogspot.com.au/2014/08/boom-or-bust-convergence-of-factors.html


References:

Rpdata Core Logic for Business Report June 2014
Townsville Real Estate Blog - http://townsvillerealestate.blogspot.com.au
Rapid Realty Townsville Scorecard - www.rapidrealty.com.au


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