REAL estate market confidence is clawing back fast after more than a year of absence, according to a new report. 

The first Voice of Townsville Real Estate Survey measured sentiment, opinions and intentions of 120 Townsville residents, more than half of who said they intend to buy a property by the end of 2010, with 32 per cent of those set to act this year. 

After a year of dropping values, a majority of respondents predicted that both median house prices and rental rates would rise by between one and five per cent over the next two years. 

The share market meltdown has also contributed to the popularity of property as a preferred investment vehicle.  

When respondents were asked to nominate one or many areas they would invest their money over the next five years, five in every six people said they would buy property as opposed to shares, which was the next best with one in three votes.  

However, the report still gave evidence of some uncertainty with people virtually split on whether Townsville real estate prices were currently well priced or overpriced. 

The online survey was commissioned by ReMax Excellence real estate agents Rohan Banning and Lyn Griffiths. 

“Overall, the findings of this report show that many people view Townsville real estate as a safe long term investment option that they are ready to commit to sooner rather than later,” Mr Banning said. 

“The report found that both home up-graders and investors will be shopping in similar numbers which is a great sign for the future. 

“We believe this level of renewed confidence has been brought on by historically low interest rates and a belief that Townsville property prices are at the bottom of the market cycle.” 

The report also studied which suburbs people believed had the greatest potential for both capital growth and rent rises over the next five years. 

Townsville’s inner and fringe city suburbs dominated the top of the list. North Ward, with 24 votes, came in at the top ahead of Hermit Park (19), West End (18) and Railway Estate (16).  

The popularity of those suburbs was reflected by the prices that people intended to pay for their next purchase, the price range of $351,000 to $450,000 being the most popular. 

Accordingly, almost half of respondents said their next purchase would be an established house as opposed to a unit or new home. 

Ms Griffiths said people tended to turn to proven performers during times of uncertainty. 

“The inner-city will become an even more desirable place to live and invest as Townsville’s population and lifestyle amenities continue to grow,” Ms Griffiths said. 

“History tells us that suburbs close to water, the city or major lifestyle precincts outperform almost all other suburbs when it comes to capital or rental growth. 

“There were also a number of people who voted for suburbs in the northern beaches corridor, which is where most of Townsville’s future housing development will occur. 

“Surprisingly, 68 per cent of respondents said they wouldn’t need to sell a current property to fund their next purchase which also shows a lot of confidence in the market.”