The market for rental properties in Australia has traditionally always been a healthy one, but in recent times, it has dipped to some of the lowest levels ever. This has created a surge in high demand for whatever properties are left in the market, resulting in much higher rental prices. This problem doesn’t seem to have an endpoint yet, which means that rental prices will continue to rise.
Certain locations, such as Townsville, are experiencing a property bottleneck as a result of this rental property shortage. Over the past six months alone, the vacancy rates of properties in Townsville have plummeted due to the increased demand. So, is there a rental property shortage in Townsville? Absolutely.
A Little About Townsville
Townsville is a city situated on the north-eastern coast of Queensland. It is known for being the base of over 50,000 U.S. and Australian troops during the second world war. Townsville still embraces this military relationship to this day and is the country’s leading garrison city. This looks to continue into the future, with the prospect of nearby training for the military being stationed in Townsville by 2030.
Townsville is also established as a contemporary city with a business hub and lots of amenities to draw in tourists. It has a thriving population of 200,000 and is perfectly situated to enjoy a balanced climate. Townsville is an ideal investment opportunity for real estate – provided you can get your hands on a property!
Townsville has a lot of interesting things going for it. One of the most unique attractions found in Townsville is Castle Hill, a towering pink granite monolith situated in the centre of the city. It’s also a city that is enthusiastic about fitness and wellbeing, so it’s common to see people enjoying the climb up and run down Castle Hill. There are also a number of hiking and biking trails to enjoy around the locale.
The Rental Property Shortage in Townsville
In terms of housing in Townsville, demand is incredibly high. Vacancy rates in the area have fallen to the lowest levels in over a decade and sit well below the state average at 0.7%. There are two main causes that can justify this, the first is regional house prices are soaring (about twice the rate of capital city properties).
The second factor is people feeling less inclined to move to a bigger city following the Covid-19 pandemic. Recent studies have shown that sales volumes for properties in Townsville have shot up by 38.2% from February of this year, with estimates predicting that households might need to source an additional $2,000 to $5,000 in order to buy.
The current property landscape in Australia is still quite varied. Some areas experience more properties than tenants while other areas, like Townsville, are struggling to find enough properties for people to live in. There is a clear need for property investment in Townsville to catch up to the growth that the area is enjoying. This is great news for property investors and those with property in Townsville.
If you’re considering a property investment opportunity in Townsville, or are looking for a rental property in Townsville, contact us today at Harcourts Kingsberry for more information.