Townsville is expected to defy the housing downturn, with prices surging $89,000 in 12 months even as borrowing power tightens.
Townsville is in a strong position and expected to see out the downturn well.
The city has emerged as one of Australia’s most resilient housing markets, with prices continuing to climb sharply in the latest PropTrack Home Price Index, released Friday - which saw dwelling values rise 16.7 per cent annually to $634,000.
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7/29-31 Lindsay Street, Rosslea, - a three-bed 229m² unit - sold for $520,000 on April 29.
Prop Track senior economist Eleanor Creagh says Townsville’s momentum shows little sign of slowing at present.
House prices jumped by $88,000, up 15.11 per cent to $668,000, but units were outstanding with a surge of 24.28 per cent pushing up prices by $104,000 to $517,000, making Townsville one of the strongest performing markets in the country.
PropTrack senior economist Eleanor Creagh said the city’s momentum showed little sign of slowing.
“Price growth remains very strong. It’s one of the strongest performing markets in the country. Prices are continuing to rise solidly, clearly supported by comparative affordability,” she said.
“Prices were still up 0.7 per cent in the month. So we’re not seeing an indication of a slowdown yet.”
Ms Creagh said Townsville was “without a doubt” outperforming markets such as the Gold Coast and could be more insulated from any broader correction “at this stage”.
She expected a “combination of strong demand and affordability” to continue to underpin prices and buyer activity.
The 3-bed house at 4 Eckhoff Street, Heatley, sold for $527,000 on April 29.
A 4-bedder at 52 Mannikin Way, Bohle Plains, sold for $810,000 on April 29.
The strong performance comes as housing markets across Queensland begin to face mounting headwinds, with borrowing power expected to fall by up to 10 per cent if further rate rises materialise this year.
“Slower growth and further price declines are probably likely in the months ahead. It looks like we’ve approached a turning point,” Ms Creagh said, with higher rates expected to hit borrowing capacity even as prices remain elevated.
“Where it is good news for buyers is less competition, lower clearance rates, buyers regaining negotiating power,” she said. “That can mean better outcomes, even if prices don’t fall much.”
This comes as the state capital Brisbane saw dwelling values surge 17.5 per cent over the past year to a median of $1.08 million, highlighting the affordability advantage still supporting Townsville’s growth.
Across Queensland, the strongest gains were recorded in SA4 regions surrounding Greater Brisbane, led by Ipswich, where median home values rose 21.5 per cent to $913,000.
Logan–Beaudesert followed with a 20.7 per cent increase to $942,000, while Darling Downs–Maranoa rose 20.4 per cent to $557,000. Toowoomba climbed 19.9 per cent to $813,000, and Moreton Bay South surged 18.8 per cent into million-dollar territory at $1.073 million.
Across regional Queensland overall, dwelling values rose 13.9 per cent over the past year to $832,000. Cairns also posted solid growth, with dwelling values up 12.91 per cent to $658,000.
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