Townsville is one of the fastest growing property markets in North Queensland.

Thanks largely to strong economic growth and continued investment, new residents are flocking to the area. In turn, the influx of new residents continues to drive demand and competition in the property market. If you’re looking to invest or buy-to-live in the North Queensland property market, there are a number of good reasons why Townsville should be on your radar.

Strong Economic Growth

Like we mentioned, Townsville’s strong economic growth has been a key driver in the local property market. It’s fair to say that the Gross Regional Product (GRP) of Townsville accounts for a relatively modest 3.27% of the state's Gross State Product. However, the headline takeaway needs to be the 3.51% GRP growth over the last two years. This growth showed a 72% increase on the year before, and a 228% increase in just three years – which is remarkable. 

So what do these numbers mean for the property market? 

It’s a good question. But in a nutshell, GRP growth is a good indicator of a growing local economy. More money in the local economy as well as new residents driving demands mean that property prices are rising quickly. 

Strong Rental Yields

The local demand for property is great news for investors with rental yields for houses sitting at 4.33% - an increase of some 30% over the last 12-months. As far as numbers go, the rental yields in Townsville sit between those of Brisbane (higher at 5-7%) and the Gold Coast (lower at 3-4%). If you are a buyer looking for an accessible entry point to the market, Townsville is an attractive option to say the least. 

On the other hand, if you are looking to stake their claim on the Townsville property market, strong rental yields, and low vacancy rates (which we’ll cover below) are two of the most attractive selling points. On the other side of the coin, new investment and strong demand mean that there is a need for continued housing development to ensure that the market continues to be accessible to first-time home buyers.

Low Vacancy Rates 

According to data from the REIQ Residential Vacancy Report June Quarter 2022, Townsville’s vacancy rates in the middle of 2022 hit a new record low of just 0.5%. Since then, there has been a slight increase in vacancy rates. As of Q1 2024, the numbers have climbed back to just under 1% - which is still remarkably low. The <1% vacancy rates mean that property in Townsville is in higher demand than in Brisbane, where vacancy rates are hovering at 1.3%.

Attainable Entry Point 

Median property prices in Townsville sit at $550,000 for houses and $350,000 for apartments respectively. While houses in Townsville still remain relatively affordable compared to Brisbane and Gold Coast, things are moving quickly as we saw a 12-month growth rate of 30%. For buyers or investors that are looking for an entry point to North Queensland’s booming property market, Townsville still presents plenty of options for new and existing homes at different price points. 

Growing Population

Townsville is Australia’s internal migration hotspot. A report from the Regional Australia Institute that came out in March 2023 showed that Townsville experienced a 500% increase in internal migration in the preceding 12-month period. According to the report, the bulk of these new residents were seeking economic opportunities in the area. As far as the local population growth goes, Townsville saw a 1.5% increase in residents over the past 12-months. This number is expected to continue along the same trajectory in 2024.

So, what’s behind the growth? Well, there’s a lot of things, but the growing local population can largely be attributed to growing economic opportunities, relative affordability, and attractive lifestyle – who doesn’t like year round sun!

Growing Demand 

Perhaps the best reason to stake your claim on the Townsville property market comes down to demand. As new economic opportunities arise and more people seek opportunities outside Queensland’s metro hubs, the North Queensland region of Townsville has come onto many people’s radar. With the growing demand, increase in population, and low vacancy rates, there is a need for continued investment in new residential constructions.

As new investors come into the area, prices will inevitably continue to arise. For local builders and residential housing developers, there is a need to continue with development of new homes and ensure that housing remains accessible.