A Townsville investment property gets you into a city where rentals are scarce and prices still sit far below South-East Queensland. The jobs behind that demand come from Defence, health, education and the Port, so the city does not lean on any single employer.
This article goes through the numbers behind each of those. At the end there is a short list of Townsville properties we like right now.
Key takeaways
- Townsville’s rental vacancy rate was 0.96% in July 2026, according to Realestate Investar, with 851 rentals available across the region.
- The median weekly rent for a Townsville house was $550 in July 2026, up 10.63% on a year earlier.
- The median listing price for a Townsville house rose 28.66% in the year to July 2026 and 39.51% over two years, according to Realestate Investar.
- PropTrack put Townsville’s overall median home price at $636,264 in June 2026, a long way under most of South-East Queensland.
- Townsville City Council approved a record 1,255 new residential lots in 2025-26, about double the nine-year average of 630.
- Our current Townsville list runs from $539,900 for a West End loft on a six year DHA lease to $1,099,900 for a five bed co-living home at Rasmussen.
How Tight Is the Townsville Rental Market?
Very tight. Townsville’s rental vacancy rate was 0.96% in July 2026, according to Realestate Investar, with 851 rentals available across the region. Fewer than one in every hundred rental homes was empty.
A market is usually called balanced when somewhere around 2.5% to 3% of rentals are empty at once. Townsville has not been near that for years. Townsville City Council’s housing plan records the city at 1% or lower for long stretches since 2020.
Rents have moved with it. Realestate Investar put the median weekly rent for a Townsville house at $550 in July 2026, up 10.63% on a year earlier. About a third of the population rents.
For a landlord, that means a good home in a sensible street finds a tenant fast.
What Have Townsville House Prices Done?
They have had a big two years. The median listing price for a Townsville house rose 28.66% in the year to July 2026 and 39.51% over two years, according to Realestate Investar.
PropTrack put the overall median home price at $636,264 in June 2026. Even after the run, that is a long way under most of South-East Queensland, and that gap is what has investors looking north.
What Is Driving Demand in Townsville?
Jobs, from a lot of different places.
Lavarack Barracks and RAAF Base Townsville make Defence a major employer. Add the Townsville University Hospital, James Cook University, the Port, government, logistics, resources and manufacturing. If one of those slows down, the rest keep people in work and paying rent.
Then there is the building pipeline. The Queensland Government’s North Queensland Major Projects Pipeline lists these four in or near the city:
| Project | Value | Status |
|---|---|---|
| Army Aviation Program of Works | $700m | Under construction |
| Townsville University Hospital expansion | $530m | Under construction |
| Townsville Port Expansion, Stage 2 | $690m | Planned |
| Haughton Pipeline, Stage 2 | $274m | Under construction |
On top of that, Council has budgeted $415.5 million for capital works in 2026-27, mostly roads, water and new growth areas. Projects this size bring crews, and crews rent.
Is Townsville’s Population Growing?
Yes. In July 2026 Townsville City Council said the city had added almost 12,000 residents over five years. Council expects roughly 50,000 more over the next two decades.
Builders have noticed. Council approved a record 1,255 new residential lots in 2025-26, about double the nine-year average of 630:
| Financial year | Residential lots approved |
|---|---|
| 2022-23 | 598 |
| 2023-24 | 448 |
| 2024-25 | 832 |
| 2025-26 | 1,255 |
Most of the northern approvals were in Shaw, Bohle Plains, Beach Holm, Cosgrove, Burdell and Mount Low.
Townsville, Cairns or South-East Queensland: Which Fits You Better?
It depends on your budget and what you need the property to do. The figures below come from different sources and dates, so treat them as a rough guide, not a like-for-like match.
| Townsville | Cairns | Moreton Bay | Sunshine Coast | |
|---|---|---|---|---|
| Typical price | about $636,000 (all homes) | about $798,000 (houses) | about $1.19m (houses) | about $1.29m (houses) |
| Typical weekly rent | $550 (3-bed house) | varies | about $639 | about $750 |
| Typical gross yield | mid-4% to 5% | 4.5% to 5% | about 2.8% | low 3% |
In Townsville a detached house costs around half what one does on the Sunshine Coast. The loan is smaller, and the rent covers more of it. South-East Queensland has Brisbane on the doorstep and a deeper pool of buyers, and you pay for that on the way in.
So the lower entry and the stronger yield sit with Townsville. Closeness to Brisbane sits with South-East Queensland. Which matters more is your call.
What We Check Before We Recommend a Townsville Property
A strong city still needs the right street. Our 2026 Townsville report sets out the checks for any property there, starting with Council’s flood mapping and the site levels, and an actual insurance quote before the contract goes unconditional.
It also calls for a written local rental appraisal and recent comparable leases, not just an advertised rent. Then a look at competing estates nearby, the drive to the bases, the hospital, the university and the industrial areas, and a design that suits the climate and the people who rent there.
The Townsville Properties We Like Right Now
If the numbers have you looking at Townsville, here is a short selection from our current list.
| Property | Price | Rent | Gross yield |
|---|---|---|---|
| West End loft, 1 bed, six year DHA lease | from $539,900 | $580 a week | 5.59% |
| Aitkenvale half duplex, 2 bed | $709,900 | est. $630 to $650 a week | est. 4.61% to 4.76% |
| Deeragun half duplex, 4 bed | $809,900 | est. $630 to $650 a week | est. 4.04% to 4.17% |
| Kelso dual occupancy, 3 + 2 bed | $1,009,500 | est. $1,000 to $1,100 a week combined | est. 5.15% to 5.67% |
| Rasmussen co-living, 5 bed | $1,099,900 | est. $1,850 a week | est. 8.75% |
Book a call and we will walk you through the one that fits your budget.
Book a free 15 minute callTownsville Investment Property FAQs
Is Townsville a good place to invest in property?
Townsville has what most investors look for first. Rentals are scarce, with a vacancy rate of 0.96% in July 2026, according to Realestate Investar. House prices sit well below South-East Queensland, and the jobs come from Defence, health, education, the Port and industry. More than $2 billion of major projects are under way or planned. Whether it suits you comes down to your budget, your goals, and picking the right property in the right street.
What is the rental vacancy rate in Townsville?
Realestate Investar put Townsville’s rental vacancy rate at 0.96% in July 2026, with 851 rentals available. Other 2026 reports put it at about 1.0% to 1.2%. Townsville City Council’s housing plan records the city at 1% or lower for long periods since 2020. Under 1% means fewer than one in a hundred rental homes is empty, so tenants have few choices and a good property rarely sits vacant for long.
How much have Townsville house prices gone up?
According to Realestate Investar, the median listing price for a Townsville house rose 28.66% in the year to July 2026, and 39.51% over the two years to July 2026. PropTrack put the city’s overall median home price at $636,264 in June 2026. That is growth that has already happened, and it shows how busy the market has been. Townsville is still well below house prices in Brisbane, Moreton Bay and the Sunshine Coast.
Where is Townsville growing?
Much of the new housing is on the city’s northern side. Townsville City Council’s lot approvals for 2025-26 were strongest in Shaw, Bohle Plains, Beach Holm, Cosgrove, Burdell and Mount Low. In the south, growth is in Julago, Rasmussen and Alligator Creek. In August 2026 the Queensland Government committed $64.5 million to a wastewater project that will open up more than 3,000 future homes in Townsville’s south.
How Positive Income Properties Helps
We work out what you can afford before we show you a property, not after. Then we find something that fits the goal and check the numbers against the local market. We stay with you through to settlement and beyond.
We do not have in-house brokers, conveyancers or insurers, and that is deliberate. In-house people do what the company that employs them wants. We point you at independent professionals and let them give you their own advice. You are welcome to use your own.
It costs just $990 to work with us, if you qualify. Book a call and we will tell you whether you do.
If you would like to talk it through, book a call with a consultant.
Book a free 15 minute callGil Elliott, Managing Director and Founder of Positive Income Properties. Gil holds an MBA and a Graduate Diploma in Management, and has built Positive Income Properties around access to more than 100 builders across Australia.
Gil Elliott is the Managing Director and Founder of Positive Income Properties. Gil has a rich background in business consulting and property investment. All of these he gained in his nearly four decades of experience in the real estate and marketing industries.
