What’s happening?
Townsville has emerged as one of the top-performing regional property markets in CoreLogic’s latest Quarterly Regional Market Update.
Dwelling values in Townsville rose by 6.6% over the past quarter, securing its position as one of Queensland’s regional growth leaders alongside Mackay and Gladstone.
The report also highlights Townsville’s annual dwelling value growth of 26.9%, a testament to its rising appeal.
Why it matters?
This surge in property values reflects Townsville’s growing attraction as a lifestyle and investment destination.
With affordability, robust demand, and an expanding rental market driving growth, the city is fast becoming a hotspot for buyers seeking value outside capital cities. Townsville’s position as a key growth region underscores its resilience amidst challenging national economic conditions.
Local Impact
The sharp rise in property values and rental demand indicates heightened buyer and tenant interest in Townsville.
Investors, drawn by the city’s affordability and rental yields, are helping to fuel this growth. For residents, however, rising rents and values may add pressure, particularly as cost-of-living challenges persist.
By the numbers
- 6.6%: Quarterly increase in Townsville dwelling values, among the top three growth regions in Australia.
- 26.9%: Annual dwelling value growth, reflecting over $100,000 in added median value.
- $600,000: Median property value, keeping Townsville affordable compared to major capital cities.
Zoom In
Kaytlin Ezzy, CoreLogic Australia economist, noted that Townsville’s success is driven by its affordability and lifestyle appeal. “Regions like Mackay, Geraldton, and Townsville are seeing exceptional growth, driven by affordability advantages compared to our major cities, as well as lifestyle appeal,” she said.
Even with significant value increases, “they still remain attainable with medians less than $600,000.”
Zoom Out
Nationally, regional markets are outperforming capital cities, with dwelling values in regional areas rising 1.1% over the quarter compared to 0.8% in capital cities.
While Queensland regions like Townsville are leading the charge, regional coastal markets in New South Wales and Victoria are seeing declines. Townsville’s growth contrasts with regions like Batemans Bay, which recorded a 2.7% quarterly decline.
What to look for next?
As Townsville continues to thrive, its housing market momentum could attract further investment and population growth.
However, rising property values and rents may spark challenges for affordability, particularly as interest rates remain high. Look out for continued performance data from CoreLogic, especially around rental yield trends and sales volumes.
