Townsville, the unofficial capital of North Queensland, is entering a new era. Once overlooked by investors and homebuyers focused on Brisbane or coastal hotspots, Townsville has now found itself on the radar of buyers and analysts nationwide.
With impressive price growth, major infrastructure investment, and a rising population, the city’s property market is poised for continued strength.
Here we explore Townsville’s residential surge, rental market dynamics, infrastructure pipeline, and why all eyes are turning north.
Residential Market: Impressive Price Growth from a Low Base
According to the latest CoreLogic data, Townsville’s dwelling values have increased by more than 46% over the past year, placing it among Queensland’s top performers.
Median house prices have climbed to around $807,000. This surge follows years of subdued performance; between 2007 and 2018, prices in Townsville fell roughly 27%, largely due to the end of the mining boom and major weather events.
Since then, the market has rebounded strongly, driven by affordability compared to coastal markets, renewed buyer confidence, and significant public and private investment. Quarter-on-quarter growth has stayed solid, around 6–7%, highlighting consistent demand rather than short-term volatility.
Rental Market: Vacancy Crunch and Investor Opportunity
Townsville’s rental market tells its own story. Vacancy rates have dropped below 1%, signalling a tight market with high demand from tenants. Rents have been rising steadily, supported by local job creation in defence, healthcare, education, and new industries such as renewable energy and battery manufacturing.
For investors, this tight rental market offers attractive yields combined with capital growth potential. As more workers relocate to Townsville for infrastructure projects and expanding industries, demand for rental properties is expected to remain strong.
Population Growth and Economic Drivers
Townsville’s current population of around 201,000 is projected to grow to nearly 240,000 within the next decade. Annual population growth of around 2% is backed by government efforts to boost regional living and decentralise from southeast Queensland.
Key industries underpinning this growth include:
- Defence (Townsville hosts Australia’s largest army base)
- Healthcare and education (including James Cook University and the Townsville University Hospital)
- Port and logistics (Townsville is Northern Australia’s largest container and automotive port)
- Mining, minerals processing, and emerging green industries
This diversified economic base has made Townsville more resilient to single-sector shocks, encouraging longer-term investor confidence.
Infrastructure Pipeline: Shaping the Next Chapter
A defining feature of Townsville’s growth story is the scale of planned and ongoing infrastructure. Significant projects include:
- Upgrades to the Port of Townsville to handle larger vessels and support trade growth.
- The CopperString 2032 project, a transmission line unlocking renewable energy potential and critical minerals projects across North Queensland.
- Waterfront revitalisation plans aiming to transform Ross Creek into a cultural, tourism, and residential hub.
- Road projects easing congestion and opening new residential areas, such as the Northern Beaches Trunk Road and further duplications on key arterial routes.
- Proposals for a lithium-ion battery plant and a large pumped hydro project near Hervey Range.
Together, these projects are expected to create thousands of jobs, boost housing demand, and improve liveability.
Policy Support: Incentives and Activation Funds
Townsville City Council and the Queensland Government have introduced initiatives designed to increase housing supply and rejuvenate underutilised land. These include:
- Infrastructure charges discounts and waivers for developers who build infill housing or restore heritage buildings.
- Subdivision incentives to encourage medium-density and higher-density developments within the urban footprint.
- A multi-billion-dollar residential activation fund targeting infrastructure improvements that unlock new housing estates.
This policy backing helps ensure supply keeps pace with demand, aiming to prevent affordability from deteriorating as growth accelerates.
Why Townsville Appeals to Investors and Buyers
Townsville offers a compelling blend of factors rarely seen together:
- Strong double-digit capital growth over the past year.
- Tight rental market providing healthy yields.
- Affordable entry prices compared to capital cities.
- A diversified, growing economy.
- Significant public and private investment supporting future demand.
As lifestyle shifts continue post-pandemic, Townsville benefits from its coastal setting, tropical climate, and lower cost of living — without the price premium of southeast Queensland hotspots.
Risks and What to Watch
While the outlook remains positive, there are still factors to monitor:
- Infrastructure delivery delays could slow housing supply.
- Market momentum could moderate if interest rates remain higher for longer.
- Economic reliance on government and resources investment may affect future resilience.
Nonetheless, Townsville’s fundamentals, especially affordability and population growth, provide a buffer against sudden downturns.
A Regional Powerhouse in the Making
In 2025, Townsville stands out as more than just a regional market catching up — it’s building the case to become a sustained growth story.
Supported by infrastructure, demographic momentum, and investor interest, Townsville has shifted from a once-overlooked city to a market firmly on the national radar.
For buyers, investors, and industry professionals, Townsville is no longer just worth watching – it’s worth serious consideration.
As the city’s transformation continues, the years ahead could see it become one of Australia’s most compelling regional success stories.
Want to know more? Contact an Elders Expert in the area here.