Why Invest in Townsville

Published: 16 March 2007.

Townsville Characteristics

Townsville is the largest tropical city in Australia and has emerged as one of the most dynamic and livable cities in the country in recent years. The stable economy and prospects for future growth underpin a sound investment environment for owner occupiers and property investors alike.

Population Growth

The population of Townsville has grown by over 2 % p.a. over the past five years. In the year ended June 2004, net migration resulted in a gain of 2,202 people in the greater Townsville region, while total population increased 3,473 to 155,371 people. Net migration accounted for almost two thirds of population growth in the year to June 2004, reflecting the strong labour market. Population projections from the Queensland Government?s Planning Information and Forecasting Unit (PIFU) indicate that this is expected to grow at around 2 % p.a. over the next 23 years to well over 200,000 by 2026.

Strong Economy

The key to the strength of the Townsville economy lies in its diversity. Contributions are received from many industry sectors, with no one industry dominating the economy. Major contributions are generated from manufacturing, health & education, construction & dwelling investment, retail and wholesale trade and government. Townsville is the trade centre for the vast North West Queensland minerals province and the port experienced seventeen years of consecutive trade growth to exceed 10 million tonnes per annum in 2003-2004. A major military presence and the establishment of three international scale metal refineries provide a stable base for other sectors of the economy to leverage off. The James Cook University and a number of research institutions in the Townsville region are incubators for economic growth and provide further opportunity for the supply of dwellings.

Dwelling Demand

Forecast population growth and dwelling size indicate that around 1140 new dwellings are required per annum to satisfy derived demand for permanent dwellings. Increasing visitor numbers are translating into strong occupancy rates and growing demand for short term accommodation.

Townsville Property Market

Price growth has been exceptionally strong across the Greater Townsville region in recent years. Research indicates that an average house purchased five years ago in Townsville LGA would have enjoyed an annual compounding growth rate of approximately 14.6 %, rising from a median price of $128,500 in the September 2000 half year to $254,500 in the September 2005 half year.

Vacancy Rates

According to new figures released by the Real Estate Institute of Queensland (REIQ), vacancy rates across the Twin Cities were at an all time low during the September 2005 quarter. Vacancy rates were a remarkable 1.5% for houses and 1.1% for units, suggesting the region is bordering on a critical shortage of medium to long term accommodation.
The unprecedented construction and resource boom is attracting thousands of out-of-town workers to the Twin Cities which should continue for many years to come, resulting in further strain on existing accommodation levels. This demand is translating into significant growth in rental rates.

Access

Increased competition and capacity on domestic routes has improved access into the city in recent years. As at March 2006 Townsville had 12,851 seats into the city per week, up from 11,306 seats one year earlier. This represents a capacity increase of 14%. Latest data from Queensland Airports Ltd reveals that passenger numbers through the Townsville Airport have grown by 8% per annum over the past five years, growing to 1,187,143 passengers during 2005. This growth is largely due to increased capacity, new route development, continued expansion of airlines servicing the region and competition between domestic carriers.

Climate

Situated in the dry tropics, Townsville enjoys over 300 sunny days per year. The warm tropical climate is perfect for winter breaks and with only slight maximum temperature variations throughout the year, it is swimming season all year round in the Townsville region ! Summer temperatures range from 24-31 degrees Celsius and winter
Mean Daily Max Temp ° C
temperatures 14-26 degrees Celsius. The yearly average maximum temperature is 28.8 degrees Celsius and the minimum is 19.8

Information supplied by www.PRDconsulting.com.au/consultingnq