Better known for its mining and military industries, a green evolution is set to drive the economy of regional city Townsville, and the rest of the country is taking notice.
The rich, north-western Queensland minerals province of Townsville is home to Australia’s largest defence base and is a major manufacturing and logistics hub, and is now undergoing a green transformation with several key sustainability projects planned for the region.
“There are a number of key projects that are attracting the attention of investors from traditional markets looking for higher investment yields,” Mr Pascoe said.
“The Landsdown Eco Industrial Precinct, a hub for environmentally sustainable advanced manufacturing, processing and technology, has now secured funding from all tiers of government and has the potential to create 5,000 new construction jobs and 1,600 ongoing jobs. With around $80million in funding committed, this is now a reality for Townsville and has the ability to future-proof the town’s economy by becoming a global player in the booming green energy and advance manufacturing space.”
There are also other, much talked about billion-dollar projects that are in the planning stage and have the potential to reshape the region. These include the $1.75 billion Copperstring 2.0, the $5.4 billion Hells Gate Dam and the $330million Kidston Pumped Hydro Project, now underway. These projects are in addition to traditional infrastructure investments such as the $2.25 billion Singapore Military Training initiative shared between Townsville and Rockhampton. Also progressing is the $232 million channel widening at the port of Townsville, which will see vessels of up 300 metres accommodated. Once completed, it will deliver improved accessibility for Asia and the Pacific as well as being the only port on the eastern seaboard to provide for B Triple/Type 2 Road Train access via the State Development Port Access Road. Collectively, this will create a significant logistical competitive advantage.
“All of this is repositioning Townsville and the region as a future-thinking, resilient and safe option for investors looking for higher yielding investments and there will be an increased need for ancillary industrial servicing facilities to support these activities” States Mr. Pascoe.
Port of Townsville Expansion Plan 2025-2050.
Townsville sits on fertile industrial ground and is currently experiencing prime grade rents which are growing alongside eastern seaboard rents to $125-$135 per m2. Yet land values are comparatively low at around $160 per m2 for serviced blocks. In contrast, prime grade yields for metropolitan markets are around 4.5%, refocusing developers to areas such as Townsville, where vacancy and competition is minimal.
Heron Todd White Director Jason Searston commented. “Townsville’s industrial market is continuing along the positive trajectory witnessed over the past 3 years. With the increased activity in the mining sector, we anticipate continued growth in the support services industry, although we will also see potential in the engineering and manufacturing space. Large scale land development in the southern areas of Stuart and Cluden reveals strong local and national focus towards the intermodal transport, logistics and warehousing sectors.”
James Pascoe from Pascoe Commercial said enquiry from South-Eastern seaboard cities like Melbourne and Sydney for industrial land was booming on the back of a number of sustainability projects gaining momentum in Townsville.
“Townsville is often misunderstood as just another mining town that is subject to boom and bust but we are now seeing a big focus from southern investors who are realising the robust fundamentals and potential of the region. Commercial and industrial vacancy rates are the lowest I have seen in 20 years, and while there are some tenancies available, there is a limited pipeline of serviced sites coming to the market to cater for expected future demand.”
Mr Pascoe continued, “Our diverse economy, abundance of renewable energy, locality and capability to service the traditional resources industry, form the economic pillars that will further drive growth. When you consider all of the projects either planned or underway in the region, there is no doubt that the region is well and truly on the radar of savvy investors leading up to the 2032 Olympics and further beyond into the future”
Port of Townsville.
