Townsville unit price growth overtakes houses

News.com.au

2 days ago

Townsville home prices have continued to surge, with the latest property data revealing the unit market outpaced the house market in the past 12 months.
The June PropTrack Home Price Index showed the median home price in Townsville shot up 20.19 per cent in the year to May to sit at $540,500.
Home prices were also up 2.19 per cent in the May quarter.
Townsville unit prices rose 22.42 per cent in the past year to sit at a median of $422,000, while house prices were up 19.95 per cent to a median of $607,000.
In the May quarter, the average unit price increased 0.9 per cent and the average house price was up 2.33 per cent.
Jools Munro, owner of Explore Property Munro & Co, said while the Townsville property market remained strong, the unit market in particular was running hot.
'Unit days on market are now shorter than houses,' she said.
'I haven't seen that in my experience.
'Around January 2024, units were sitting at about 120 days on market, now they're under 40 days.
'That's a direct reflection of affordability in the Townsville market.'
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Ms Munro said she was seeing more first homebuyers looking at units and townhouses after being priced out of the house market.
'It's so hard to buy any house under $500,000 that's remotely attractive,' she said.
'We absolutely still see first homebuyers and buyers under 40 turning up to open homes for houses priced between $650,000 and $750,000, but the ones who don't have those dollars, with budgets still sitting in the $400,000s, they have to look in the unit market.'
Ms Munro said while the Townsville property market wasn't going to see price drops anytime soon, competition was starting to wane.
'The number of enquiries from interstate investors have dwindled, which is lovely for locals,' she said.
'In March, we launched a property in Mt Louisa that attracted 26 written offers.
'It was listed for offers over $575,000 and sold for $653,000.
'We haven't had that flurry on a property since March.
'Last month, about 75 per cent of our sales were to owner occupiers.'
Ms Munro said in more good news for buyers, some suburbs looked to be getting close to their price ceilings.
'Cranbrook, for example, had the big rush, the 34 per cent increase in house prices, but I can't see too many recent sale moving into the $600,000s,' she said.
'Now what I'm seeing is sales in the $550,000 to $570,000 price brackets.
'Water always finds it balance and the market does too.'
The PropTrack report showed regional Queensland recorded a 0.25 per cent rise in home prices in May, to a median of $733,000, bringing them 8.66 per cent above May 2024 levels.
The median house price in regional Queensland hit $769,000 in May, up 0.36 per cent month-on-month and 8.96 per cent year-on-year.
The median unit price dropped slightly last month, down 0.14 per cent, but was still up 7.58 per cent year-on-year to sit at $674,000.
REA Group senior economist, Eleanor Creagh said in Brisbane home prices peaked in May, rising 0.24 per cent to reach $889,000.
'Brisbane's median house price has hit a new high as it edges close to $1m, sitting at $998,000 in May,' she said.
'Annually, home prices in Brisbane were up 8.38 per cent as both houses (+7.8%) and units (+11.42%) recorded growth over the year.
'Brisbane remains one of the top performing capital city markets over the past year, alongside Adelaide and Perth.'
The Home Price Index showed national home prices increased 0.39 per cent in May, marking the fifth consecutive month of growth and a new record high for Australian home values.
'With interest rates falling, price momentum has increased and broadened, with all capitals seeing prices lift in May,' Ms Creagh said.
'The growth seen in all capital cities is underpinned by improved buyer sentiment and renewed confidence following interest rate cuts.
'With further price increases and rate cuts expected, prospective buyers are moving off the sidelines and accelerating their purchasing decisions.'
Ms Creagh said looking ahead, stretched affordability would remain a constraint, but a chronic lack of new housing supply, population growth and targeted buyer incentives were expected to keep upward pressure on prices.
'In combination with interest rates continuing to move lower, these factors are likely to drive further price growth throughout the remainder of 2025,' she said.