Tenants a clear a winner in Townsville rental market

first_imgTenants continue to be the big winners in Townsville’s property market, according to new data.TENANTS continue to be the big winners in Townsville’s property market, according to new data.Rental rates for houses fell by 3 per cent and -5.1 per cent for units in the December quarter, with figures expected to drop even further.Corelogic RP Data’s senior research analyst Cameron Kusher, who released the findings as part of his company’s regional marker report, said Townsville had not yet seen the bottom of the cycle, as the only region in Australia to record a fall in house values (-3.2 per cent) over the same period.However, indicative rental yields remained stable to the previous 12 months at 5.2 per cent for houses and 6 per cent for units. “I guess our view is that you will probably see a bit more of a decline this year so they might even go a little bit lower than they are at the moment,” he said.“I guess that really shows that anyone who is renting in Townsville doesn’t really need to be in a rush to go out there and buy, as rents are coming down.“You have got people that live there that can’t find the jobs that they need and they move elsewhere and that is dampening both rental growth and value growth.“So at this stage I don’t see anything that is going to turn things around over the next 12 months and I wouldn’t be surprised to see further falls in rents.” Top five suburbs to investMs Elliott said investors struggling to lease their properties should consider basic upgrades.“A well cared for property shows that the owner cares and will in return attract tenants that will care,” she said. “Also, security and good ventilation, such as fans and airconditioning are important.” Core Logic’s Regional Market Update also found that homes took longer to sell when compared to the same time 12 months ago, despite the average vendor discount improving over the year. A typical house is now taking an extra three days to sell, while for a unit, the average time it takes to sell has increased by 10 days, with vendor discounting above 10 per cent for both houses and units. Top five cheapest rental suburbs for unitsMore from news01:21Buyer demand explodes in Townsville’s 2019 flood-affected suburbs12 Sep 202001:21‘Giant surge’ in new home sales lifts Townsville property market10 Sep 2020At a median rent price of $210 a week, Currajong is Townsville’s cheapest address for those looking to rent a unit, while Balgal Beach tops the list for houses at $260.Castle Hill also ranks in the top five for cheapest units to rent at a median weekly rate of $220.Despite a total of 1810 properties listed for rent across the greater Townsville region, Smith and Elliott principal Sally Elliott said it was not all doom and gloom.“First of all, of those 1810 properties, I’d say about 5 per cent are not actually available now but in about a month’s time,” she said.“While the bottom end is spoiled for choice, we can’t get enough of the higher end market and properties that are located within 5km of the CBD, Stockland and other main city hubs.”last_img

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