Townsville welcomes cash rate hold
Residential property investors in the far north Queensland are likely to welcome the Reserve Bank's decision to hold the official cash rate at 3.5 per cent, with the stabilising market driving the state's housing recovery forward.
The Housing Industry Association (HIA) released figures yesterday (August 7), coinciding with the central bank's interest rate decision, revealing a housing market recovery emerging in Queensland.
In the 2011 January to June period, only 488 houses were approved for construction in Townsville, with that number almost doubling to 719 in the same period this year.
HIA said the resurgence in the Townsville property market would be further enhanced by the RBA's latest move.
"The number of single dwelling construction approvals in Townsville has been slowly recovering over the first six months of this year after years in the doldrums," HIA said in a statement.
"Today's decision will help drive the recovery."
According to the housing body, Townsville builders were reporting a renewed interest in the sector - with a growing number of inquiries for new home building from first time buyers and investors.
HIA cited the housing market recovery on fresh confidence in the sector attributed to economic opportunities in Queensland - including mining, agriculture, tourism and infrastructure development.
