$9bn projects to fire up Townsville market
Infrastructure projects worth $9 billion, more jobs and rising confidence point to 2019 being a year of economic growth, according to the Colliers International Townsville quarterly commercial report.
The report released yesterday declares that 2018 was the start of Townsville’s recovery which would continue to gain momentum in 2019.
Projects such as the $512 million Haughton River flood plain upgrade, the Adani Carmichael mine and Sun Metals expansion are expected to bring employment and population growth and further investment in the region.
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Colliers International Townsville managing director Peter Wheeler says Townsville’s economic future is looking much brighter.
“In our experience, the commercial property market has performed where we would expect it to be given the improving economic conditions. That’s been backed up by this report,” he says.
“We’ve had a solid year for commercial property sales and interest in high quality office and industrial space has certainly picked up through to the end of the year.
Inquiry from investors, tenants and owner occupiers improved along with solid activity in commercial leasing
“Business confidence is on the increase and we’re anticipating that will continue into 2019, bringing investment that will be good for the city and good for the property market.”
According to the report, business confidence has been cautiously optimistic in 2018 and is expected to further improve in 2019.
Yields for well-located and high-quality industrial and commercial properties are expected to firm in 2019 however a lack of attractive investment stock remains an issue.
Industrial and commercial vacancy rates are also expected to improve.
Around $27 million worth of Townsville retail property changed hands in the first three quarters of 2018 equating to 8% of all commercial and industrial property transactions.
Office properties transactions represented 44% of property deals with the highest price office sale in the calendar year 364 Flinders St, Townsville which sold for $15.5 million.
We’ve had a solid year for commercial property sales and interest in high quality office and industrial space has certainly picked up through to the end of the year
More than $167 million worth of industrial property changed hands in 2018 so far with 806 Ingham Rd, Bohle earning the highest sale at $12.6 million.
The report states that throughout 2018 Townsville’s commercial and industrial property market performed within expectations with good levels of interest in commercial office space and quality industrial assets.
“Inquiry from investors, tenants and owner occupiers improved along with solid activity in commercial leasing,” the report states.
“Office and industrial have produced solid sales with $15.5 million and $12.6 million in top end sales.
“Retail sales are performing as expected in a tougher, more competitive market with a top sale of $6.7 million.”
This article from the Townsville Bulletin originally appeared as “$9 billion in projects to fire Townsville’s property market”.