Townsville investors more attracted to houses than units: HTW

Townsville investors more attracted to houses than units: HTW
Townsville investors more attracted to houses than units: HTW

Townsville investors are more attracted towards housing products than units, according to a recent Herron Todd White report.

The property data firm says that the rental market continues to see an oversupply.

“Over the past few years, local and out of town investors have typically been more attracted to housing product over unit stock as the rental market, particularly for units, remains in oversupply along with ongoing buyer aversion due to high body corporate expenses.

“Local investors appear to be typically attracted to entry level stock in the sub $300,000 price bracket, whilst out of town investors are generally in the $300,000 plus price bracket.

“The rental market is continuing to indicate an excess of supply with the vacancy rate for houses as at June 2017 standing at 4.75% and units at 6.50%.

“This excess supply of property available in the rental market relative to demand over the past three to four years has been filtering through to on-going trend reductions in the level of median rents,” the report stated.

A three bedroom house at 20 Curtin Place, Douglas (above) has been listed for $349,000.

Built in 2000 it last sold in 2003 for $363,000.

Another three bedroom house at 13 Rosella Court, Condon (below) was listed for $279,000. It is under contract now.

Built in 1980, it last sold for $20,000 in 1988.

Townsville investors more attracted to houses than units: HTW

Median rents have fallen by 11% compared to levels in 2012, Herron Todd White warns.

“In trend terms median rents in March 2017 for both houses and units are 11.7% below their corresponding levels in March 2012.

“Investors in the current market appear to be seeking capital gains.

“With both the median house price and median rents at soft levels, this puts investors in a good position to capitalise on the upswing in market conditions.

“The latest federal budget has tinkered with property market settings to address housing affordability including the implementation of changes to residential investment property depreciation.

“These changes along with tighter financial controls for investors appear to be one size fits all adjustments applied to correct Sydney and Melbourne markets, however they have the potential to negatively affect regional markets such as Townsville, where the primary concern is consolidating a recovery process, not affordability,” the report said.

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