A recent PropTrack Insights Report has identified Townsville as Australia’s fasting-growing property market.
The latest PropTrack Home Price Index shows annual growth to July 2025 in Townsville at 16.7%, compared to the national property price rise of 4.9%. Notably, 9 of the 10 highest growth regions were in regional Australia, with the only capital city location being Adelaide South at 10.7%.
Other Regional Hotspots
The report highlighted several strong-performing markets over the last 12 months;
- Mackay – Whitsunday – 14.5 %
- Western Australia – Wheat Belt – 14.3%
- Darling Downs – Maranoa –14.2%
- Central Queensland – 13.8%
- Toowoomba – 13.1%
- Ipswich – 11.4%
Five-Year Growth in Townsville
The growth in the Townsville market has been significant over a 5-year period with house prices increasing by more than 80%, with the majority of the growth occurring in the last 2 years. Before 2020 the Townsville market had been subdued like many Queensland regional areas.
What’s driving Townsville’s Growth?
The PropTrack report attributes Townsville’s growth to a combination of:
- Jobs growth driven by Defence investment and infrastructure projects
- Lifestyle appeal and relative affordability
- Significant infrastructure, including a major sporting stadium, energy initiatives, and water supply projects
Like many regions across Australia there is a shortage of housing, which has driven up rents and home prices in Townsville. The REIQ June 2025 residential vacancy report indicates a vacancy rate of just 0.9% with this rate falling over the last 3 quarters from 1.2%.
Affordability Still an Advantage
While house prices have grown strongly over the last 5 years the median house price is still below $600,000, which is relatively affordable compared to many other regional locations and well down on the national median.
Our local valuers on the ground in Townsville are reporting that activity across the city remains strong with this activity across all sectors of the Residential market. Many sales they are seeing are creating new suburb records for detached housing.
After such a strong growth period, questions remain about sustainability. However, with interest rates easing and rents still rising, Townsville is expected to remain firmly on the radar of southern investors in the short term.