Townsville apartments are at bottom of cycle: HTW property clock
Apartments in Brisbane, Sydney and Coffs Harbour are in the peak of the market, according to the Herron Todd White December 2015 property clock.
Townsville, Mt Gambier and Canberra apartments are now deemed at the bottom of the market.
The valuation firm said the residential property market has weakened during 2015 and it is searching for direction.
"While we have previously maintained that the market remains in the early stages of recovery, albeit tenuously and with a pace of recovery that is incredibly slow, we now believe the market has reverted to the bottom of the cycle," they said.
Herron Todd White's December report suggested the volume of house sales has remained relatively steady throughout 2015, however the median house price has declined.
"Our impression is that buyers are only purchasing properties they regard as affordable based on their current economic circumstances, leading to a reduction in the median price of houses that are actually transacting," they added.
They also said that the unit sale volumes fluctuated during the year with the median sale price for established units remaining relatively steady.
The report mentioned that vacant land sales have declined and median sale prices have softened slightly, reflecting a lack of buyer confidence in the market stemming from the subdued economy, as well as the wide price differential between new versus existing houses retarding the economics of new house construction.
The valuation firm suggested the rental market has continued to demonstrate an over supply.
"It was our belief that during the course of 2015, the rental market would progressively return to the balanced market range following the construction of National Rental Affordability Scheme (NRAS) properties coming to a close," they said.
"This however has not been the case, with the overall trending vacancy rate remaining above the balanced market range."
Herron Todd White at the start of 2015 they predicted that the year ahead would remain cautious with the overall level of activity very much dictated by the local economic factors of unemployment and business confidence.
They said that whilst business confidence showed some improvement throughout the year, unemployment and job security along with limited local stimulus have heavily weighed on the direction and confidence of the residential property market.
Below is a list of the cheapest Townsville units (postcode 4810) sold recently that Property Observer could find:
1. A two-bedroom unit at 4/105 Livingstone St West End Qld 4810 (above) sold for $182,000. The one level property last traded for $160,000 in 2013, an annual appreciation of 6.46 per cent.
2. A three-bedroom unit at 10/19 Ryan Street, North Ward, Qld 4810 (above) was sold recently for an undisclosed price, however the agents put a price guide of low to mid $200,000.
3. A two-bedroom unit at 10/6-24 Henry Street, West End, Qld 4810 (above) went backwards in price with the $280,000 sale in November. The spacious property sold for $335,000 in 2009, an annual depreciation of 2.62 per cent.
Below is a list of some of the units up for sale in Townsville:
1. A one-bedroom unit is up for sale at 4/1 Burke Street, North Ward, Qld 4810 (above). The apartment that last traded in 2003 for $101,000 comes with mid $100,000's expectations.
2. Around the median price, a three-bedroom apartment on 27/1-7 Gregory Street, North Ward (above) is up for sale for $398,800. Another property which is heading backwards in the market having last traded for $455,000 in 2008, an annual depreciation of roughly 1.8 per cent.
3. At the higher end, a three-bedroom apartment at 301/72, The Strand, North Ward (above) is up for sale for $579,000. A slightly less depreciation than the previous property, but a depreciation none the less. The huge apartment in a complex with a swimming pool and gym last traded for $620,000 in 2003, a depreciation of around 0.75 per cent.
The median unit price for units in Townsville city was $420,000, according to the latest Corelogic RP Data For more information, click here.