Has the Townsville housing market taken a hit following the floods?

Has the Townsville housing market taken a hit following the floods?
Has the Townsville housing market taken a hit following the floods?

Just as the Townsville residential property market appeared cemented in the start of the recovery phase, according to Herron Todd White, floods have hit and perhaps turned that on its head.

After a mining downturn, Townsville has been dealing with heightened levels of unemployment, said the valuer. 

Now, there is some fear the recent flooding will lead not only to a reduction in tourists but economic strength as the clean-up slows down activity.

HTW's latest residential report stated the rental vacancy rate has fallen throughout the year, while there has also been a slight increase in rents in some locations, primarily inner city postcodes.

There is also concern over the rental housing market.

However, the report noted there had not been the ripple effect of the increased activity transfer through to the market in the fringe or outer suburbs. 

It is these fringe and outer suburbs which were hit hardest by the flooding.

In fact, insurers have received more than $100 million in claims so far.

The State Government and Townsville Mayor Jenny Hill have requested insurance companies to use local businesses as much as possible to support the local economy.

Townsville Chamber of Commerce chief executive Marie-Claude Brown said she is concerned industries like retail and hospitality in particular will now take a hit as these businesses can't be supported in the same way a construction/renovation business can.

HTW's report cited major projects such as the Townsville Stadium and Haughton pipeline duplication underway along with a number of projects in the pipeline as reasons for optimism and improving economic conditions.

Tags: 
Townsville Flooding

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