Cities future bright despite challenges
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Colliers Outlook for North Queensland
Momentum has been building in Townsville’s growing reputation as a hub for sustainable heavy industry. North Queensland is ideally positioned for the global economy’s rapid shift towards decarbonising heavy industry and investing in greener sectors. The Townsville to Mount Isa corridor is rich with both highly productive renewable energy resources and deposits of the new economy minerals needed to produce new and critical technologies. Combined with the region’s proximity to the Asian market and established Port and transport networks, we’re optimistic about our region's outlook for the coming decades.
These opportunities have already created an economic boost in North Queensland, most notably through Copperstring. This $6.2B expansion of the national electricity grid is Australia’s largest transmission project. Connecting this corridor to the grid transforms the viability of investing in the estimated $500B in critical mineral resources and significant renewable energy potential located here. Added to this is the opportunities for low-carbon heavy industry initiatives powered by renewable energy generated along the Copperstring line.
We’re already seeing the impacts of these opportunities through the commercial property market. Colliers Townsville has been involved in a number of significant transactions as investment in the critical minerals and green energy sectors flows through to local property needs. This has benefited all classes of property, from office space to large tracts of development land, to warehouse and industrial facilities across both the sales and leasing markets.
This growing sector, along with the region’s substantial traditional minining industry and the immense forthcoming government investment in Townsville’s Defence presence has led to the Industrial property market being a particular standout. We continue to see the market struggling to keep up with high demand for this class of property. In many cases, the shortage of available properties has seen buyers and businesses take-up older lower-grade stock that has languished on the market in previous years.
Looking to the future
The impressive economic outlook and pipeline of established major projects has also helped propel activity from out-of-town investors. Regional property has been of growing interest to investors over the last five-years as yields in the capital cities compressed under high property prices. North Queensland has been a beneficiary of this trend as investors eye opportunities for not only property revenue but the growth prospects that our economic trajectory offers.
At Colliers Townsville, we’ve been encouraged by what we have seen in the property market in recent years. Substantial infrastructure work is paving the way for Townsville’s role in the rapidly transitioning economy. We’ve been on the frontline witnessing the flow-on investment that major sustainable industry projects bring to our region. With unprecedented potential and international interest, we’re excited to see what this burgeoning industry holds in store for Townsville.
