LOCATION

Investment Market Data

The investment market in Queensland is set to increase exponentially through 2007 with rental price increases of up to 40% expected in the residential arena. The ripple effect from this increase will be felt throughout the Commercial and Industrial sectors from the third quarter onwards and continue through 2008 and beyond.

Property prices have shown a steady upward trend since early 2001. On a micro level the median prices for the Townsville area are also expected to rise sharply in line with the regional rate of increase, making commercial property investment a must-have addition to the portfolio. Recent evidence within the industrial commercial markets in Townsville shows the exponential growth of recent years increasing as a direct result of interest from external investors.

The population expansion of Queensland is a direct derivative of the State’s mining and industry boom. With Brisbane set to be the country’s 2nd largest city within the next 5 years, significant pressure is being placed on current resources and stock.

The sustained and growing demand has seen the emergence of a strong and stable investment market within the industrial and commercial sectors. Asset-backed property trusts have been aggressive in securing large market shares in the growth industries mentioned above, based predominately on the safety of long term tenancy yields and annual returns of 7.5% or greater.

Coupled with strong capital growth and forecasted increases in demand, the commercial property market looks set to become one of the State’s most preferred investment opportunities.

Source: NRW & Colliers International Research Townsville