South Townsville

[WASP]

Having a look at South Townsville and would be interested in any local knowledge as well as posting any information here for posterity

Townsville is touted as being a high employment region with high wages growth. Widely credited as being the most broad based economy in Australia
outside an Australian capital city. Townsville’s economy comprises
defence, mining, construction, manufacturing, transport and
agriculture

The most recent median unit price according to RealEstate.com.au for South Townsville is $310,000. However as with any median this is relative, for example last month the median unit price was $505,000 and $355,000, $373,000 for preceding months

This is what we've viewed today

http://www.realestate.com.au/property-townhouse-qld-south+townsville-107002050

http://www.realestate.com.au/property-apartment-qld-south+townsville-105859504

http://www.realestate.com.au/property-apartment-qld-south+townsville-105906455

http://www.realestate.com.au/property-unit-qld-south+townsville-105796363

http://www.realestate.com.au/property-apartment-qld-south+townsville-105978726

Does anyone know a good Property Manager in the area to liaise with?

As a passive buy & hold investor, location research and property choice plays a big part for us so any local knowledge or research assistance is appreciated

According to SQM for the postcode there are now 902 properties in the postcode of 4810 that have been on the market for two months or more

SQM have vacancy rates around 6% but elswhere on the net it shows around 1 to 1.5% ?

 

[wobbycarly]

I spent quite a bit of time on and off in Townsville in 06/07, the developments in South were just taking off then and I have been there once or twice a year since and watched that area go up.

I suspect that there may be a bit of a glut.

The way the mall has deteriorated would certainly make CBD and South less desirable, as so much retail has moved out to the likes of Castletown and Stockland. The locals I work with wonder where all the people are going to come from to fill those places.

Sorry nothing concrete - no facts and figures - but merely opinion...

 

[Sunfish]

The "median" in Sth Tvlle units is unreliable. There are very few old ones and of course as the new one come on the market the median increases, but "like for like" hasn't changed for years, probably fallen.

If you look at the burbs where new development is happening it's the same with houses. To get a feel for the city look at the figures for Mundinngburra. It's a mature suburb with little new development to distort figures and has always been "popular". Wulguru and Annandale Central would be similar.

Remember Townsville has always been out of sync with the rest of the country.

 

[Sunfish]

Those units @ 38 Morehead have been completed for well over a year (didn't mark it in my diary ) and are still mostly empty.

members of a certain minority group congregate in the nearby parkland.

As a general rule of thumb, Townsville units have been grossly overbuilt. Unless you are getting something at an absolute fire sale price - Don't go there. In fact I reckon TSV is struggling. I recently sold a house in Rly Estate (near Sth Tvlle) for a significant loss after holding for three years. Sold because I doubted the slide in price had come to an end.

 

[WASP]

I spent quite a bit of time on and off in Townsville in 06/07, the developments in South were just taking off then and I have been there once or twice a year since and watched that area go up.

I suspect that there may be a bit of a glut.

The way the mall has deteriorated would certainly make CBD and South less desirable, as so much retail has moved out to the likes of Castletown and Stockland. The locals I work with wonder where all the people are going to come from to fill those places.

Sorry nothing concrete - no facts and figures - but merely opinion...

Not good news if there are lot of vacant commercial buildings and the area getting run down, it becomes a downward spiral

The "median" in Sth Tvlle units is unreliable. There are very few old ones and of course as the new one come on the market the median increases, but "like for like" hasn't changed for years, probably fallen.

If you look at the burbs where new development is happening it's the same with houses. To get a feel for the city look at the figures for Mundinngburra. It's a mature suburb with little new development to distort figures and has always been "popular". Wulguru and Annandale Central would be similar.

Remember Townsville has always been out of sync with the rest of the country.

Thanks

Those units @ 38 Morehead have been completed for well over a year (didn't mark it in my diary ) and are still mostly empty.

members of a certain minority group congregate in the nearby parkland.

As a general rule of thumb, Townsville units have been grossly overbuilt. Unless you are getting something at an absolute fire sale price - Don't go there. In fact I reckon TSV is struggling. I recently sold a house in Rly Estate (near Sth Tvlle) for a significant loss after holding for three years. Sold because I doubted the slide in price had come to an end.

I think you are correct with those properties at 38 Morehead being a year or so old. I dont have a link but I think I saw around 500 days on old listings

With that in mind, what is a good fire sale price $397,000 down to $317,600 or $454,000 down to $365,000

Why the congregation in that area? soup kitchen, shelter, 1/2 way house, detox centre, centrelink?

You expect more falls? On paper there looks to be a lot planned for Townsville as a whole

 

[WASP]

Anyone else know the area, or have some insight into Townsville or where to research?

 

[Sunfish]

C'mon! Someone help out the WASP with a positive uplifting opinion.

Mine wasn't what he wanted to hear apparently.

 

[Icarus]

Why the congregation in that area? soup kitchen, shelter, 1/2 way house, detox centre, centrelink?

Nice trees, lots of green grass! What other reason would someone need to sit down and enjoy the outdoors with a group of one's friends and family.

Why'd you choose South Townsville anyway? Yeah, there has been some good growth in the area in the past, it's close to Palmer St and the "new" mall, but just wondering why you chose that suburb in particular? It wouldn't be my first choice, but then everyone has different goals.

There's talk of a boost to the numbers of soldiers at Lavarack by 1000+, but that talk's been going on for the past couple of years now - maybe there's been a definate decision made on when this'll be?? A chunk of the railway land was bought for development near Ross Is, but not sure what happened with that?

If you're going to buy in that area, just keep an eye the flood map and do your DD first.

I have dealt with a couple of agents/PMs in town in the past, none that I'd really recommend!

 

[The Iceman]

WASP, latest API magazine has an article on Townsville and South Townsville gets a mention too. I am in the process of purchasing in South Townsville having purchased an inner city apartment in Townsville late last year.

South Townsville has had negative growth for the last couple of years having experienced massive growth prior to that.

Terry Ryder appears to like Townsville as he mentions it in nearly all of his articles on Qld. Mainly due to infrastructure going into Townsville such as the Port and Qld Government spruiking about Townsville being the second Capital City.

3 RAR (Major Army unit) is moving to Townsville from Holsworthy, NSW, which should boost rental demand, especially in the city and The Strand as that's where the singles like to live, ie as far away from the base as possible. If that is your target market you need to aim for rents of about $300 - $450 per week, any higher and it exceeds their rental allowance, meaning more money out of their pocket.

The unit I am purchasing is almost 35 k under cost price and 60 k under what the vendor purchased for. I am hoping the negative growth starts to stall especially with the new Flinders Mall and Townsville South Bank going in along Ross River.

My two cents, however, I am new to investing in property!

 

[Indifference]

......

There's talk of a boost to the numbers of soldiers at Lavarack by 1000+, but that talk's been going on for the past couple of years now - maybe there's been a definate decision made on when this'll be?? ..........

Not talk, Fact. Will be happening at the end of this year with 3RAR's move from Sydney. All details, including a presentation on Townsville with some property data details, here:

http://www.army.gov.au/hq3bde/3_RAR_Relocation.asp

 

[R377]

bit of a bump after searching for townsville. any advice in good and bad areas to look at ?
was looking Kirwan, Cranbrook, Gulliver, Hermit Park. Also is Idalia a decent new estate ?
Kelso - a house was advertised with "security doors" in the title and quite a few with hidden address', i take it this is not quite a good area ?

thanks

 

[MangoMadness]

I used to live in hermit park 10 years ago loved it! it was 1/2 way between the city and stockland shopping centre and pretty central for the whole of townsville. Generally older houses but it was a good location. (IMO) anyway

 

[_Kaos_]

Do you think the port upgrade will influence the market at all, any infrastructure is a good thing is it not?

http://www.aeol.com.au/databases/news/townsvilles_cruise_termianl.htm

 

[jacbmw]

Yeah i generally think that these types of upgrades have positive effect on prices, unless they overly commercial the area. The bulk of the positive effects also wont kick in until it is actually finished I wouldnt think.

Looking at a suburb like this, the increased value would be from increased development, higher quality (newer) properties - leading to an almost gentrification process (even though this area looks to be pretty built up already with good shopping, dining, transport facilities).

Currently looks to be some 2 bedders for sale for under $250k, and perhaps 6-7% returns which would almost warrent purchase on those numbers alone. If the new development comes along, then its a bonus. One in particular (on Mcilwraith street), compares very well to other properties around it and has good access to the local amenities.

 

[Sunfish]

bit of a bump after searching for townsville. any advice in good and bad areas to look at ?
was looking Kirwan, Cranbrook, Gulliver, Hermit Park. Also is Idalia a decent new estate ?
Kelso - a house was advertised with "security doors" in the title and quite a few with hidden address', i take it this is not quite a good area ?

thanks

I think Townsville is becoming divided, the good and the ugly. I have just escaped Aitkenvale to Wulguru and the difference is marked.

BUT if you do the legwork in Aitkenvale there are development blocks available with little or no premium. Aitkenvale IS Stockland with the soon to be finished Myers store (Who gives a ****, not me) with every bank and pizza franchise at your doorstep. Quick trip over the river to the uni, hospital and army barracks.

 

[R377]

can anyone recommend a good building and pest guy ?

also when it comes to solicitors i was recommended to use someone in town by the agent. not sure if this is true or can i get anyone in qld ?

thanks

 

[_Kaos_]

Try NQ Pest Management on 0423 313 039. He will also arrange a Building Inspection for you. About $360 all up depending on property type.

You can use anyone in Qld essentially but local usually helps.

I used these guys for my Townsville purchases:

bytherules Conveyancing Lawyers Pty Ltd on 07 5449 7222. They are located in Noosaville, Qld; however, some would say local guys are a good idea as they know the area and may be aware of certain things that may impact the area or your property.