North Queensland’s property market receives a significant boost from national developer

In response to the sustained increase in population growth and a resurgence of buyer confidence in new home construction, one of Australia’s prominent developers is stepping up efforts in North Queensland by offering two masterplanned communities that emphasize diversity and connection. This move caters to the region’s robust demand for real estate, with Townsville showcasing consistent growth and stability, becoming a prime target for investors and first-time home buyers. The challenge in the North Queensland capital has been mainly the limited availability of existing homes. Despite this issue, the trend of investing in new home construction has picked up, driven by affordable prices and high rental yields.

Urbex Realty’s General Manager, Craig Covacich, noted an uplift in confidence in the property market and sales volumes in 2024 within the developer’s portfolio. This improvement is linked to halted interest rate increases, stable construction costs, and the offering of government grants. “The demand for new homes is on the rise due to the lack of existing dwellings in the market and build supply costs steadying,” Covacich observed. He cited an instance where six properties at The Reserve in Bohle Plains were sold within a week in February, indicating growing interest in land.

To navigate and leverage Townsville’s expected contribution of 3.1 percent to Queensland’s growth over the next 22 years, Urbex, a national award-winning developer under BMD Group, is planning to develop over 1,000 homesites in Bohle Plains and Upper Ross Region across the next fifteen years. This strategy aims to mitigate the anticipated surge in demand for residential spaces against a backdrop of limited land availability. In May 2022, Urbex strategically acquired an 80-hectare site in the Upper Ross Region to address this growing need.

Similarly, Townsville’s Keir Constructions has reported an increased interest from customers wishing to build homes, attributed to improved buyer confidence and available financial grants in the region. Brad, the owner and director of Keir Constructions, highlighted that while construction costs are rising, the pace is slower than in previous years. “Building supplies and contractors are much more readily available now than in the last few years,” he said. He also pointed out that the average build time has decreased to five months, signaling efficiency gains over the delays experienced during the COVID-19 pandemic.

As Urbex proceeds with developing well-connected communities, it is currently selling the third stage of The Reserve’s eight-stage development, targeting first and second home buyers. Additionally, the developer is preparing to launch the Somers and Hervey development at the end of this month. David Argent, Urbex’s Project Director, expressed optimism about the Somers and Hervey development’s progress and the opportunity it presents to answer the region’s housing demand. “Over the next 15 years, our aim is to deliver 850 new homesites at Somers and Hervey alone to keep up with the growing demand for new builds,” Argent explained. With the forecast of an additional 63,382 residents by 2046, Urbex’s efforts serve to address the imminent need for new housing solutions in the region.