The Smartline Report – February Edition

The month in review: Townsville

By Herron Todd White
February 2015

A positive vibe surrounds the start of 2015 in the residential property market with anecdotal evidence from agents indicating good activity.

The year ahead is likely to be much the same as 2014 with economic factors such as high unemployment and low levels of business confidence dampening any prospects of short term property cycle movement.

We anticipate activity will be a little more positive than 2014, however we consider it unlikely that this will be reflected in any upward price movement. As the year proceeds, we may see vendors not feeling as much pressure to discount their asking prices.

There is still affordable buying in all sectors of the residential market if you are willing to shop around.

Relatively speaking there is good buying in the secondary and outer lying suburbs where there are perceived social issues and the trade-off is between value for money and these perceived social issues.

The unit market is likely to continue to exhibit buyer resistance in the short term with high body corporate and insurance costs and high rental vacancy rates putting downward pressure on rents. Over the course of the year, we expect this sector of the market to stabilise as price points become more attractive and rental vacancy rates and rents stabilise.

The rental market spent most of 2014 in oversupply but rental vacancies appear to have passed the peak. Given that new unit developments under the NRAS scheme have now come to a close, we along with a number of property professionals are expecting the market to progressively return to closer to normality.

Overall the year ahead remains cautious with some positive early signs, however the overall level of activity will be very much dictated by the local economic factors such as unemployment and business confidence.

Please note that information in this publication is subject to change without notice. Smartline assumes no responsibility for any errors, omissions or mistakes in this document. © Smartline Home Loans P/L 1999 – 2015. Australian Credit Licence Number 385325