Queensland property in Townsville and Magnetic Island, Oct 2004

Magnetic island and Townsville, originally published in Sun Herald October 2004

Magnetic Island locals like to brag that their idyllic tropical island is a backwater, with basic houses and a slow pace of life.
But the property developers have discovered what the locals have always loved – loads of waterfront property, unspoilt beaches and only a 25-minute boat trip to bustling Townsville.
Around $300 million of apartment and resort developments are planned for the island, with southern buyers and north Queensland locals buying off-the-plan apartments which can ultimately be leased as exclusive holiday rentals.
Local real estate agent Bill Johns has lived on the island for 28 years and says 10 years ago, the island really was, well, a bit backwards.
“You’d have 5000 people on the island at Easter and at dinner time there would be power failures because everyone was trying to cook their dinner at the same time and would overload the system,” he says.
“And 10 years ago, it was a matter of pride to have the worst and oldest car on the island because our roads were so bad that your tyres would get shredded – now it’s all modern cars because the roads have been improved.
“Even now that we are getting more sophisticated people coming here, it’s still not the type of place where you sit at a coffee shop to watch people go by.”
Magnetic Island has always drawn backpackers and divers, who easily forgave the shoddy infrastructure and basic accommodation.
But things have changed. In July this year, an IGA supermarket opened and construction is underway on several apartment developments.
PRDnationwide spokesman Shane Russell says property development will upgrade the island and make it more popular as a tourist and seachange destination.
“It’s not the old dump that it used to be – Magnetic Island has a supermarket and good infrastructure like sewerage, electricity and water which all comes from Townsville,” he says.
Magnetic Island is actually a suburb of Townsville, which is a bustling regional city undergoing its own property boom.
“Townsville City Council is pushing inner city revival so they’ve done up the main streets and the restaurant strips and there is lots of nice waterfront,” Russell says.
“Apartments are doing well in Townsville, with record prices for apartments including more than $1.2 million for a penthouse.”
Matusik Property Insights analyst Paul Broad says the future for residential property in Townsville looks positive.
“It’s a place that has really reinvented itself in the last seven years, especially with The Strand redevelopment,” he says.
Johns says Townsville’s buoyant economy is creating a shortage of tradespeople and forcing up building costs on Magnetic Island and delaying the completion of the new developments.
“Nothing can be done in five minutes up here. It’s a bit slower, not in a dropkick way, but we just don’t have the population to get things done quickly,” he says.
Broad says he thinks there is too much heat in the Magnetic Island apartment market, and believes some of the mooted projects may not be completed.
“I wouldn’t be surprised if some of those developments don’t go ahead – I mean, Magnetic Island is a lovely place and wonderful for holidays but I think there is just too much money going there right now.”
Johns says houses without water views start in the $300,000s, while the average price for most new waterfront units is somewhere between $600,000 and $700,000.
Russell says two premium waterfront units have sold for $1.3 million, which exceeds the residential house record for the island of $825,000.
PRDnationwide Consulting’s Bruce Goddard says there has been record prices paid in the past two months for various waterfront projects in Townsville and Magnetic Island. “These prices are in most cases substantially less than similar waterfront property in south east Queensland or capital cities, and more growth is expected to come,” he says.
“Magnetic Island offers the only opportunity to purchase both a freehold property on a Great Barrier Island, and a marina berth purchase within the Great Barrier Reef Marine Park.”

MAGNETIC ISLAND APARTMENT DEVELOPMENTS

NAME LOCATION    NUMBER OF UNITS ESTIMATED AVERAGE PRICES
Banyan Resort Picnic Bay        40 units            around $600,000
Blue on Blue Resort      Nelly Bay         157 units          around $764,000
Indigo Bay        Arcadia            218 units          around $550,500
Marine Parade Arcadia            10 units            around $300,000
One Bright Point           Nelly Bay         124 units around $725,000
Sola     Nelly Bay         10 units            around $500,000
Sea Temple      Radical Bay      90 units            around $890,000
The Docks       Nelly Bay         13 units            around $460,000
Waters Edge    Nelly Bay         4 units around $750,000

TOWNSVILLE APARTMENT DEVELOPMENTS

NAME LOCATION    NUMBER OF UNITS ESTIMATED AVERAGE PRICES
Watermark       The Strand       46        around $760,000
Nautica            Townsville Club            61        around $760,000
Aspect The Strand           93        around $540,000
*information from PRDnationwide


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Magnetic island and Townsville, originally published in Sun Herald October 2004 Magnetic Island locals like to brag that their idyllic tropical island is a backwater, with basic houses and a slow pace of life. But the property developers have discovered what the locals have always loved – loads of waterfront property, unspoilt beaches and only a 25-minute boat trip to bustling Townsville. Around $300 million of apartment and resort developments are planned for the island, with southern buyers and north Queensland locals buying off-the-plan apartments which can ultimately be leased as exclusive holiday rentals. Local real estate agent Bill Johns has lived on the island for 28 years and says 10 years ago, the island really was, well, a bit backwards. “You’d have 5000 people on the island at Easter and at dinner time there would be power failures because everyone was trying to cook their dinner at the same time and would overload the system,” he says. “And 10 years ago, it was a matter of pride to have the worst and oldest car on the island because our roads were so bad that your tyres would get shredded – now it’s all modern cars because the roads have been improved. “Even now that we are getting more sophisticated people coming here, it’s still not the type of place where you sit at a coffee shop to watch people go by.” Magnetic Island has always drawn backpackers and divers, who easily forgave the shoddy infrastructure and basic accommodation. But things have changed. In July this year, an IGA supermarket opened and construction is underway on several apartment developments. PRDnationwide spokesman Shane Russell says property development will upgrade the island and make it more popular as a tourist and seachange destination. “It’s not the old dump that it used to be – Magnetic Island has a supermarket and good infrastructure like sewerage, electricity and water which all comes from Townsville,” he says. Magnetic Island is actually a suburb of Townsville, which is a bustling regional city undergoing its own property boom. “Townsville City Council is pushing inner city revival so they’ve done up the main streets and the restaurant strips and there is lots of nice waterfront,” Russell says. “Apartments are doing well in Townsville, with record prices for apartments including more than $1.2 million for a penthouse.” Matusik Property Insights analyst Paul Broad says the future for residential property in Townsville looks positive. “It’s a place that has really reinvented itself in the last seven years, especially with The Strand redevelopment,” he says. Johns says Townsville’s buoyant economy is creating a shortage of tradespeople and forcing up building costs on Magnetic Island and delaying the completion of the new developments. “Nothing can be done in five minutes up here. It’s a bit slower, not in a dropkick way, but we just don’t have the population to get things done quickly,” he says. Broad says he thinks there is too much heat in the Magnetic Island apartment market, and believes some of the mooted projects may not be completed. “I wouldn’t be surprised if some of those developments don’t go ahead – I mean, Magnetic Island is a lovely place and wonderful for holidays but I think there is just too much money going there right now.” Johns says houses without water views start in the $300,000s, while the average price for most new waterfront units is somewhere between $600,000 and $700,000. Russell says two premium waterfront units have sold for $1.3 million, which exceeds the residential house record for the island of $825,000. PRDnationwide Consulting’s Bruce Goddard says there has been record prices paid in the past two months for various waterfront projects in Townsville and Magnetic Island. “These prices are in most cases substantially less than similar waterfront property in south east Queensland or capital cities, and more growth is expected to come,” he says. “Magnetic Island offers the only opportunity to purchase both a freehold property on a Great Barrier Island, and a marina berth purchase within the Great Barrier Reef Marine Park.” MAGNETIC ISLAND APARTMENT DEVELOPMENTS NAME LOCATION NUMBER OF UNITS ESTIMATED AVERAGE PRICES Banyan Resort Picnic Bay 40 units around $600,000 Blue on Blue Resort Nelly Bay 157 units around $764,000 Indigo Bay Arcadia 218 units around $550,500 Marine Parade Arcadia 10 units around $300,000 One Bright Point Nelly Bay 124 units around $725,000 Sola Nelly Bay 10 units around $500,000 Sea Temple Radical Bay 90 units around $890,000 The Docks Nelly Bay 13 units around $460,000 Waters Edge Nelly Bay 4 units around $750,000 TOWNSVILLE APARTMENT DEVELOPMENTS NAME LOCATION NUMBER OF UNITS ESTIMATED AVERAGE PRICES Watermark The Strand 46 around $760,000 Nautica Townsville Club 61 around $760,000 Aspect The Strand 93 around $540,000 *information from PRDnationwide