Townsville aerial shot
Townsville aerial shot

Townsville house prices expected to rise

THE worst is over for Townsville's housing market, a new report has found.

Findings from BIS Oxford Economics' Residential Property Prospects 2019 to 2022 report revealed house prices were forecast to grow by 9 per cent in the three years until June 2022.

BIS associate director residential property Angie Zigomanis said Townsville had been doing it tough for a few years but believed the worst was past the capital of North Queensland.

"The story starts with the mining boom when prices rose a lot and then this was followed by the bust as employment fell away," he said.

"There was a lot of (housing) construction in the pipeline so there was an oversupply."

Mr Zigomanis said these two factors meant prices fell away dramatically.

However, the report said with "investment now troughed and vacancy rates beginning to tighten, house price growth was expected to slowly return".

Mr Zigomanis said the employment situation should start to pick up in Townsville with major projects being built now or coming online.

"It should pick up with Adani mine coming online too," he said.

Although house price growth is not expected to hit double digits in the next three years, Mr Zigomanis said it was more sustainable than the boom-bust cycle.

"There's no huge big impetus (to build) like we had with the mining boom, so it should be more steady as you go and hopefully that makes it more sustainable," he said.

Another factor that could help prices rise in the future is a lack of new houses being built.

"Townsville is probably not going to be building enough housing stock to keep up with demand, so we will start to see housing stock soaked up," he said.

Compared to Cairns, Townsville's housing prices have dropped more as Cairns was more shielded from the resources industry bust, the report said.

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