Townsville home prices fall further as interest rate hikes start to bite

Townsville’s remarkable property boom is showing further signs of losing momentum, with home prices weakening in September as higher interest rates begin to catch up with one of Queensland’s strongest housing markets. The latest PropTrack Home Price Index, released Thursday, shows Townsville’s median home price fell half a per cent to $626,000 last month. Townsville’s median home price fell half a per cent in September 2026. Picture: Colliers Townsville. Townsville had been one of the country’s standout property performers, recording years of near-uninterrupted price growth even as higher interest rates began weighing on more expensive capital-city markets. But cracks began appearing over winter. Townsville home prices fell 0.07 per cent in July — the first monthly decline since March 2023 — before rebounding 0.6 per cent in August. That took the median dwelling value to about $633,000, still 11.49 per cent higher than a year earlier. Houses rose just 0.25 per cent in August and were down 0.35 per cent over the quarter, while units remained significantly stronger, climbing 2.14 per cent for the month and 19 per cent annually. Realestate.com.au economist Eleanor Creagh said Townsvil...