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The home at 24 Norris Street, Hermit Park, is on the market for offers in the low $300,000s, offering buyers an almost-champagne location on a beer budget.

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While interest rates continue to rise, Townsville home values are predicted to shoot up further on the back of increased immigration and tight housing supply, a new market analysis has found.

The Herron Todd White Month in Review report for May found Townsville’s house and unit markets were both “rising markets” on the national property clock while across the country the property market was looking to rebound.

Gary Brinkworth, Herron Todd White CEO, said buyer confidence rose in April but interest rate increases could still slow positive momentum.

“Most numbers still imply we have hit the bottom of the price cycle,” he said.

“Our valuers across most markets have said their agent contacts are reporting increased enquiry along with more buyer participation at open homes and auctions.”

Herron Todd White CEO Gary Brinkworth. Picture: supplied

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Mr Brinkworth said if recovery had begun nationally, the 2022 correction had been “extremely mild”.

“The peak-to-trough fall in Australian property values has been around 10 per cent so far, which isn’t significant compared to the close to 25 per cent increase in values throughout the 2021 boom run,” he said.

“This combination of factors bodes well for future price growth – even if it is moderate.”

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Mr Brinkworth said rising immigration coupled with low housing supply and challenges around construction all worked to increase values.

“This opens a window of opportunity for most buyers,” he said.

“Acquiring property now – be it a home or investment – with a view to holding for the long term could be a savvy decision, subject to the nuances of the location and property itself.

“This is particularly so for buyers of lower-priced real estate in desirable locations.”

The property at 3 Bundock St, North Ward, is for sale for offers in the low-to-mid $400,000s. Picture: realestate.com.au

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Townsville-based Herron Todd White valuer, Adrian Bagent, said buyers hunting for that champagne location on a beer budget should look for smaller homes and lots in areas such as North Ward, Belgian Gardens, Castle Hill and Pallarenda.

“The homes in North Ward for example comprise a mixture of older style homes ranging from the 1920s to 1980s, generally situated on lager residential allotments ranging between 809 sqm and 1,012 sqm,” he said.

“The entry level value for North Ward is approximately $650,000, which would get a buyer an older style home in mostly original or poor condition.”

The property at 23 Tamarind St, Kirwan, is for sale for offers over $295,000.

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Mr Bagent said looking just beyond the 4810 postcode to areas such as Hermit Park would save buyers money while still offering proximity to Townsville’s most desirable suburbs.

“If buyers are willing to sacrifice location, they could choose a suburb such as Kirwan, which is further away from North Ward again, however the buyer could … receive much more bang for their buck,” he said.

According to the latest REA Market Trends Report, the median house price in the Townsville region was up 2.7 per cent in the past three month to $390,000.

The median unit price was down 7.4 per cent in the same time to $262,000.