Townsville has recently welcomed 1,500 soldiers and families from the third Battalion Royal Australian Regiment as they relocate to Lavarack Barracks. This boost in population, along with Townsville’s already consistently strong population growth and the ramping up in mining industry sectors, are all positive signs economically for the area.

The year ahead may see an increase in the number of self managed retirees entering our markets with good opportunities to buy and vacancy rates low offering some opportunity for a safer haven to the current volatile stock market. There will be a number of new land estates which may come to market during the year, including The Village at Oonoonba, Greater Ascot and Rocky Springs.

In the established housing market over the later half of 2011, opportunistic purchasers ruled as the residential property markets languished. Sales were on the rise, but prices were in decline. Large amounts of mortgagee/receiver stock coming on the market relative to the numbers of buyers, plus an overhang of other properties for sale, meant that vendors had to offer a discount on initial price expectations to achieve a sale in the current market conditions. Anecdotal evidence suggests that this pattern has carried over into the start of 2012. It is viewed this represents the pre-conditions needed for the market to restart in earnest, but there is an abundant amount of stock to clear before the higher levels of turnover start impacting on prices.

The unit market, particularly for established product will continue to struggle as a result of negative feeling surrounding skyrocketing strata insurance costs. This is bringing considerable angst to investor returns in this sector. An inquiry into these skyrocketing insurance costs is due to commence in January with the outcome of the hearings a highly anticipated topic in the local market.

The outlook for 2012 is for the market to consolidate and start to rebuild, but this will be a gradual process, not a rapid rebound.

Source: Herron Todd White