Townsville property prices surge up to 20pc

Home prices continue to trend up in Townsville. Picture: Supplied

Townsville was Queensland’s top performing property market in October with new data revealing price surges of almost 20 per cent in the past year.

The October PropTrack Home Price Index revealed the unit market was leading the price growth charge in Townsville with a 19.27 per cent increase in the past 12 months.

The median unit price hit $452,000 in October, up 3.79 per cent for the quarter.

The median Townsville house price was up 15.27 per cent year-on-year and 3.84 per cent quarter-on-quarter to $626,000.

These results helped push combined unit and house prices up 3.86 per cent for quarter and 15.94 per cent for the year to a median home price of $586,000.

Keyes and Co Property principal, Damien Keyes said Townsville’s strong price growth was driven by high demand outstripping stock levels.

“The population is still growing and employment is really strong,” he said.

“A lot of people are arriving here and looking for good quality homes.

“Rental demand is still insane – vacancies are low and that is putting pressure on that space.

“Some tenants are moving into the housing market just to improve housing security.”

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Keyes and Co Property principal, Damien Keyes. Picture: Supplied.

Mr Keyes said a shift in investor buying had put upwards pressure on unit prices.

“With houses pushing beyond that $650,000 to $700,000, investors are turning their focus to the apartment market where they are finding more room for growth at a lower price point.”

Mr Keyes said the cost and time associated with buying a new build was also pushing up demand in the established home market.

“The cost to deliver new home and land is still really high … and blocks are selling well ahead of title registration, so there is a big lag in delivery,” he said.

“While that housing cost remains high and people are having to rely on vacant land to be produced, the established market is still more attractive.”

In regional Queensland, median home prices peaked at $764,000 in October, up 0.6 per cent month-on-month and 11.2 per cent, or $84,200, year-on-year.

Regional Queensland house prices rose 0.6 per cent last month and 10.9 per cent in the past year to $774,000, while unit prices increased 0.7 per cent month-on-month and 11.7 per cent, or $80,500, year-on-year to $744,000.

The home at 4 Hale St, Townsville City is on the market at offers over $2.399m. Picture: realestate.com.au

The PropTrack report showed national home prices were up 0.6 per cent in October to a new median of $858,000.

REA Group senior economist and report author Eleanor Creagh said this extended the upswing to a 10th straight month and lifted values 7.5 per cent higher than a year ago, the strongest annual pace since May 2024.

“Increased borrowing capacities, lower mortgage rates and improving sentiment are fuelling renewed competition, but the pattern of growth is shifting,” she said.

“Over the past year, Darwin, Hobart, Melbourne and Sydney have seen the fastest acceleration in annual gains with these previously softer markets regaining momentum.

“In contrast, the pace of annual growth is easing from earlier highs in Brisbane, Adelaide and

Perth, though prices are still at record levels and continue to rise briskly.

“All regional markets have slowed, except regional Victoria, narrowing regional market outperformance.”

Ms Creagh said nationally, annual growth had lifted above the 30-year average, yet stretched affordability is a handbrake on growth, which remains well below the 20-30 per cent pace of past booms.

“Looking ahead, this year’s series of rate cuts, population inflows and the expanded Home Guarantee Scheme will continue to bolster demand,” she said.

“With stock on market constrained and new supply challenged, conditions remain tilted toward sellers.

“The market appears set for further price gains throughout spring and into summer.”

PropTrack senior economist Eleanor Creagh. Photo: Supplied

In Brisbane, the median home price rose 0.9 per cent last month to a new peak of $976,000.

This was the second largest climbs of all markets in October behind Adelaide (1.2%).

Brisbane home prices were also up 12.6 per cent, or $112,700, annually – the largest dollar value rise of all markets.

Brisbane house prices were up 0.9 per cent in October, to a median of $1.126m, lifting the annual increase to 11.1 per cent, or $117,400.

In the unit market, buyers were paying 0.9 per cent more month-on-month and 16.8 per cent, or $109,700, year-on-year, as the median unit price hit $770,000.

Elsewhere in Queensland, Mackay was the second best performing market in the state behind Townsville with the median dwelling price up 15.5 per cent year-on-year in October to $587,000.

In Darling Downs – Maranoa, home prices increased 14.75 per cent to a median of $494,000.

On the Gold Coast, home prices were up 10.06 per cent in the past year to $1.107m, while in Cairns the median home price rose 11.12 per cent to $613,000.

OCTOBER PROPTRACK HOME PRICE INDEX

(SOURCE: PropTrack)

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