27 June 2017

Idalia - Top Price Winner of the Week - 13 Petrie Way - $580,000

Image: TREN Emagazine - Patio and Pool at 13 Petrie Way Idalia Photo: Living Here

This week’s winner

Idalia has developed from a light industrial suburb to become one of Townsville's fastest growing suburbs. The Fairfield Waters development saw the construction of nearly one thousand homes. Many of the homes are designed to executive standard with large floor areas, en-suites, 4 bedrooms and quality finishing.

This week’s residential property Top Price Winner of the Week has all of the features families have come to enjoy and need space, comfort, convenience, and security.

The property sold for $580,000 which is $165,500 above the current median house price at $414,500 for the suburb. Despite the seemingly positive price outcome, Idalia has seen a 22 percent drop in its median price since Dec 2015. The property was priced at $640,000, which represents a discount of $60,000 or nearly 10 percent.

Idalia has been impacted quite heavily by the difficult economic conditions in Townsville overall and the losses of families and residents moving away from the area have contributed to an unemployment rate above 10 percent.

This suburb has a population of approximately 3600 as at the 2011 sensis but is now closer to 4000 with further developments happening since then.

The property

The marketing agent, Ms. Tracy Crome Principal of Real Estate Agents Living Here at Hermit Park, said: "The owner of the property was an absolute joy to work with and the family that bought the home are very happy."

Ms. Crome describes the property as an "Executive Home plus Amazing Man Shed." She said:
Image: Front view - 13 Petrie Way Adalia Photo: Living Here

Positioned in a prestige area just minutes from everything including walking tracks around the lake and 5 minutes to the city, this executive home assures privacy with no impact from neighbours. It is low maintenance yet enjoys lush tropical surrounds. 

This beautiful home has been built by Award Winning Builder, New Home Solutions, and includes raked ceilings to living areas, granite kitchen , extra large garage, large theatre room, swimming pool, garden shed and a 'Man' Shed that every man will love!!!!

Features Include:

- Four bedrooms (main with ensuite and walk-in-robe)
- Fully air-conditioned and security screens 
- 34 sqm games room / workshop area, insulated and air conditioned with bathroom
- 2 metre deep swimming pool with self cleaning cell and coloured LED programmable lighting
- 5kw Horan & Bird Solar Panels
- 692m2 corner block for side access to the shed
- Separate media room, lounge and dining room
- Designer kitchen with granite bench tops
- Automatic garage 
- Low maintenance landscaping with automatic irrigation system
- Relaxed lifestyle living

Investment profile

TREN’s research has identified that the suburb of Idalia has a population of approximately 3600 people as defined in the 2011 sensis. Between 2006 and 2011, the suburb grew in population by approximately 1600 people.

This property is an example of the valuation difference that exists when new homes are purchased at retail prices directly from the builder and sold as 1st and 2nd generation houses on the property sales market over a relatively short term. The sale of 13 Petrie Way Idalia is a 2nd generation property.

For example, the last sale of this property occurred in April 2013 for $640,000. The land was sold originally for $172,900 in May 2007 to the builder or new home buyer. The dwelling was built between 2007 and 2013, most likely around the time the Fairfield Waters shopping centre was built in 2008. The value of the build (under builders’ contract) is not disclosed. The 1st generation owners most likely lived in the home for approximately 5 years until it was sold in April 2013.
 
Image: Google Map of Idalia Townsville
The next owners, which are the 2nd generation owners, bought the property and most likely lived in it for 12 months as a principal place of residence before putting it on the rental market for $580 per week, attracting the federal government's capital gains discount and negative gearing provisions.

The property was again put on the market in Aug 2016 without sale or settlement and again in January 2017 until it finally sold and settled on 16 June 2017 as our Townsville Weekly Price Winner. The property is now a 3rd generation home.

The suburb represents excellent value. Yet first home buyers of established homes are not eligible for the first home buyers grant if they were to buy this property. In spite of the $20,000 new home buying incentive, the discounts being experienced in Idalia are worthy of both investor and first home buyer attention.

In this example, the buyer has achieved a minimum $60,000 discount as the property sold for $640,000 on the open property market only 4 years ago, and approximately 9 years after the house was originally constructed.

The increase in the population of Idalia occurred when the Fairfield Waters housing estate was created in 1998. The most significant growth occurred when the Fairfield Shopping Centre was developed in 2008.

The suburb has a current median house price of $414,500, down approximately 10 percent from $460,000 over 12 months ago. Units in Idalia have a median unit price of $240,000 down a massive 40 percent over the past 12 months from $405,000.

The sale price achieved for this property of $580,000 will have a positive impact on the median house prices in Idalia as it exceeds the current median house price for the suburb. Approximately 64 house sales have been recorded in Idalia over the past 12 months.

The median rental price for houses in Idalia is $410 per week producing a yield of approximately 5 percent from 194 tenanted properties in 12 months. Units have a median rental price of $330 per week producing a yield of approximately 3.7 percent from 31 tenanted units in 12 months.

Idalia has a desirable lifestyle for couples and families with shops, schools, university and well established landscaped streets and water side walking and bikes paths in the area. Maturing, established and older couples and their families make up 58% of the population. Independent youth makeup 11% and established independent people make up 11% of the population.

The old Ross River meat works in Idalia is of heritage significance. It closed down in 1995 after 103 years of operation. The chimney of the old meatworks has been retained. The meat works have now been demolished. The suburb supported workers in the meat industry, including the establishment of a meat experiment station in 1914 until it was taken over by the CSIRO in 1932. During the second world war, a military camp was established in Idalia.

The Oonoonba Primary School has taken enrolments since 1920. The current location of the school is approximately 300 metres walking distance of this property which was established as a new school in 2002. Southern Cross Catholic School is 1.5 kilometres and three other schools are located 2 to 2.5 kilometres from the property. James Cook University and Australia's largest army base, Lavarack Army Barracks, is approximately 5 minutes drive from the property.

The demand for housing in Idalia has increased over 100% since prices have reduced over the past 12 months. Over the same period, demand for rental accommodation has been steady. Prices for rental properties have also been steady while housing sale prices have reduced by nearly 10 percent and unit prices have reduced by nearly 40 percent.

Previous Week’s Winner


Further reading




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