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Are you wondering where Australia’s property market is headed in 2025? If you think Sydney and Melbourne are the only places to watch, think again. There is one city that experts say will experience the biggest growth next year, Townsville.
Located in North Queensland, Townsville has been steadily growing, but in 2025, it’s expected to take off. Experts predict that property prices in Townsville will rise by 25-30%, making it one of the fastest-growing markets in Australia. With a current median house price of $520,000, Townsville homes could reach $650,000 or more in just a year.
But why is Townsville booming? What makes it such a great place to invest or buy a home? Unconditional Finance will help you understand everything you need to know about Townsville’s property market and why 2025 might be the perfect time to buy.
Why Townsville? The Secret Behind Its Rising Appeal
Many people don’t realise how much Townsville is growing, but with big investments, a strong economy, and more people moving in, the city is getting a lot of attention.
Here’s why Townsville’s property market is about to take off.
1. Townsville’s Economy is Growing Rapidly
A city’s property market is connected to how well its economy is doing. If businesses expand, new jobs are created, and infrastructure improves, house prices will usually go up. Townsville is experiencing all of this, and here’s why:
Townsville’s Port Expansion
One of the biggest reasons for Townsville’s growth is its port. In 2024, Townsville was named Australia’s Port of the Year, proving its importance in trade and logistics.
- A $251 million expansion is allowing larger ships to dock, increasing imports and exports.
- More trade = More businesses = More jobs = Higher demand for homes.
The $5 Billion CopperString 2032 Project
Another major project is CopperString 2032, a $5 billion plan to connect North Queensland to the national electricity grid.
- Townsville is set to become a hub for renewable energy, attracting big businesses and investors.
- This project will open up thousands of jobs, attracting skilled workers and families to Townsville.
Government Investments and Job Growth
The government is also spending a lot of money on improving Townsville. They are investing in industries like:
- Defence – Townsville’s military base is expanding, bringing more workers and families to the area.
- Mining – More mining jobs are becoming available, attracting high-income workers.
- Manufacturing & Energy – More businesses are moving in, creating jobs and strengthening the economy.
With more jobs and businesses, more people will move to Townsville, increasing housing demand and property prices.
Thinking about buying in Townsville before prices rise further? Speak with our mortgage brokers today to secure the best loan options and make your move before the market takes off.
2. More People Are Moving to Townsville
One of the biggest reasons for rising house prices is population growth. When more people move to a city, the demand for homes goes up.
A Growing Population
Right now, 205,000 people live in Townsville, but that number is expected to increase quickly.
Why are people choosing Townsville over other cities?
- Houses are cheaper – In Sydney, the median house price is over $1.2 million, while in Townsville, it’s only $520,000.
- More jobs – The economy is growing, and new industries are creating work opportunities.
- Better lifestyle – Townsville has great weather, beaches, and a relaxed way of life.
Housing Supply Can’t Keep Up
Because so many people are moving to Townsville, the Townsville City Council created the Local Housing Action Plan (2024-2027).
- The plan aims to build 1,200+ new homes per year.
- Even with this plan, demand may still outpace supply, keeping house prices on the rise.
With limited houses available and more people moving in, prices will continue to rise.
3. What’s Happening in Townsville’s Housing Market?
House Prices & 2025 Forecast
Right now, Townsville’s median house price is $520,000. But experts predict prices could increase by 25-30% in 2025, meaning:
- Houses may reach $650,000 or more.
- Investors will see significant capital growth.
- Homebuyers should act fast before prices climb higher.
Housing Supply is Low
- The vacancy rate is just 0.7%, meaning very few homes are available for rent.
- Over the past three years, houses for sale have dropped by 32%.
- Low supply = higher prices, as people compete for available properties.
Townsville’s Rental Market is Booming
- Long-term rentals: More demand from young professionals, families, and students.
- Short-term rentals: Airbnb and holiday rentals are growing fast due to tourism and business travel.
- Rents are rising, making it a great time to invest.
4. Should You Invest in Townsville?
If you’re considering buying property, Townsville offers excellent opportunities for capital growth and rental income. Here’s where you should focus your investment.
Best Suburbs to Buy in Townsville
If you’re looking to buy property, some areas offer better returns than others. Here are top picks:
- North Ward – Close to the beach and CBD, ideal for professionals.
- Douglas – Great for families, with schools and parks nearby.
- Kirwan – Affordable and has long-term growth potential.
- Riverside Gardens – Near James Cook University, perfect for rentals.
Choosing the right suburb can help you maximise profits and growth.
5. The Role of Tourism in Townsville’s Property Market
While economic growth and population expansion are driving Townsville’s housing boom, tourism is another crucial factor influencing the real estate market.
Townsville as a Tourist Destination
Townsville is home to some of Australia’s most iconic natural attractions, making it a magnet for both domestic and international visitors:
- Magnetic Island – A 20-minute ferry ride from Townsville, this island offers stunning beaches, hiking trails, and wildlife encounters, drawing thousands of tourists each year.
- The Great Barrier Reef – As a gateway to one of the world’s greatest natural wonders, Townsville benefits from eco-tourism and diving tourism, bringing more visitors and investors.
- Museum of Tropical Queensland & Cultural Attractions – Townsville offers a rich cultural scene, including historical landmarks, indigenous heritage sites, and art festivals.
With rising tourism numbers, short-term rental investments like Airbnb and serviced apartments are seeing strong demand and profitability. This adds another layer of opportunity for property investors.
How Tourism Affects the Rental Market
As more visitors flock to Townsville, short-term accommodation demand increases. This is particularly beneficial for investors:
- High occupancy rates in short-term rentals lead to strong returns.
- Holiday rentals can earn higher nightly rates than long-term leases.
- Townsville’s growing reputation as a business hub attracts corporate travellers who prefer fully furnished rentals.
For those looking to invest in rental properties, Townsville’s tourism boom presents lucrative opportunities.
6. Future Infrastructure Developments That Will Increase Property Value
In addition to current economic projects, future infrastructure developments are set to increase Townsville’s property value even further.
- Proposed Rail and Transport Upgrades – Improving connectivity between Townsville, Cairns, and Brisbane, making the city more accessible for commuters and businesses.
- CBD Expansion & Waterfront Redevelopment – Upgrades to the city centre will add new office spaces, entertainment precincts, and public areas.
- New Health and Education Facilities – Expansions at James Cook University and Townsville Hospital will bring in more students, professionals, and medical staff, increasing housing demand.
Each new infrastructure project enhances liveability, convenience, and investment potential, making Townsville even more attractive for buyers.
Common Mistakes to Avoid When Investing in Townsville’s Property Market
While Townsville presents incredible opportunities, buyers and investors should be aware of common pitfalls:
❌ Not Researching the Right Suburb – Different areas have different growth rates. Investors should choose high-demand suburbs like North Ward, Douglas, or Kirwan for the best returns.
❌ Ignoring Market Trends – Real estate prices fluctuate. Staying informed about vacancy rates, rental yields, and upcoming developments is crucial for smart investments.
❌ Underestimating Maintenance & Costs – Investors should factor in property upkeep, insurance, and potential rate changes when calculating returns.
❌ Waiting Too Long to Buy – With prices expected to rise 25-30% in 2025, delaying a purchase could cost buyers thousands in missed equity growth.
By avoiding these mistakes, investors can maximise their profits and make smart, long-term property decisions.
Predictions for Townsville’s Property Market Beyond 2025
✅ 2026-2030: Continued housing demand fueled by population growth and job creation. Prices could rise another 20-40% over five years.
✅ Long-term Infrastructure Impact: New transport links, business districts, and sustainability projects will drive even more property appreciation.
✅ National and International Buyers: As affordability in Sydney and Melbourne declines, more interstate and overseas investors will turn to regional hotspots like Townsville.
This suggests that investing now could provide strong long-term capital gains.
Final Thoughts: Is 2025 the Best Year to Buy Property in Townsville?
With rising property prices, government-backed projects, and booming industries, 2025 presents a golden opportunity for investors and homebuyers.
Why You Should Buy Now:
✅ Prices are set to rise 25-30% – Buying early secures lower prices before the market spikes.
✅ Strong rental demand – Investors can benefit from high occupancy rates and growing rental returns.
✅ Long-term economic growth – Infrastructure projects ensure Townsville will continue expanding over the next decade.
If you’re thinking about buying in Townsville, now is the time to start your research, talk to mortgage brokers, and explore your options before prices rise further.
Ready to take the next step? Contact our mortgage experts today to discuss your financing options and secure the best loan for your future home or investment.
Frequently Asked Questions
With property prices in Townsville expected to increase by 25-30% in 2025, getting a home loan approved quickly is crucial. We streamline the loan process, compare multiple lenders, and negotiate the best interest rates, ensuring you secure financing before prices rise further.
Yes. Buying your first home in a competitive market can be overwhelming, but we guide first-time buyers through loan pre-approval, government grants, and financing options, ensuring they get the best deal with as little stress as possible.
Banks offer only their own loan options, but we work with many lenders to find and negotiate better rates and flexible loan terms based on your financial situation.
Yes. If you have a smaller deposit, we explore low-deposit loan options, government incentives, and LMI options so you can buy a home sooner instead of waiting to save more.
Absolutely. We specialise in helping self-employed individuals secure home loans, working with lenders who understand complex income structures and offering flexible loan solutions designed for business owners and freelancers.
With Townsville’s property market booming and rental demand increasing, we help investors find the best investment loans, structure their mortgages for tax benefits, and secure financing that maximises rental returns.
Yes. If you already own property in Townsville, refinancing can help you access lower interest rates, reduce monthly repayments, or unlock equity for investment. We assess your current loan and compare it with the better options available on the market.
Loan pre-approval gives you a clear budget and strengthens your position as a buyer. In a competitive market, pre-approved buyers have an advantage as they can act quickly when making an offer, reducing the risk of losing out to other buyers.
Yes. We help eligible buyers access government grants like the First Home Owner Grant (FHOG) and stamp duty discounts to lower upfront costs and make buying a home more affordable.
Getting started is easy. Simply contact us for a free consultation, and we’ll help you understand your budget, explore loan options, and guide you through the application process to secure the best financing for your home or investment in Townsville.
