CoreLogic Regional Market Update reveals the strength of Townsville’s property market

As property values begin to drop in other Australian regions, Townsville has bucked the trend, recording a hefty increase over the last quarter. See how much values have climbed over the last five years.

CoreLogic Australia economist Kaytlin Ezzy has highlighted Townsville's strongly performing property market. Picture: Supplied.

Townsville’s thriving property market has recorded regional Australia’s second fastest growth in the value of residential housing over the last quarter, according to a new property report.

The CoreLogic Regional Market Update report for August 2024 revealed that Townsville was defying a national trend where regional property markets were experiencing a slowdown in value growth as affordability constraints, normalising listing levels, and the elevated interest rate environment continued to impact growth.

While overall regional markets saw dwelling values increase by 1.3 per cent over the last three months to July, Townsville recorded a 7.8 per cent rise in median value over the quarter to $484,059 – surpassed by Gladstone’s quarterly value increase of 9.2 per cent.

Townsville’s property values have gone gangbusters over 12 months, climbing 23.9 per cent while over the last five years it has increased 55.8 per cent.

In the past year, Townsville has also racked up a 8.3 per cent increase in sale volumes, while maintaining one of the shortest durations for its properties on the market – 17 days.

CoreLogic Australia economist Kaytlin Ezzy said the national pace of growth in the regions had eased from recent peaks as normalising internal migration patterns cooled demand for regional housing.

CoreLogic Research Analyst Kaytlin Ezzy

She noted that growth trends across Australia’s largest 50 non-capital city Significant Urban Areas have become increasingly diverse, with 40 per cent of these regions recording a decline in values over the quarter, while 11 regions, including Townsville, saw values rise by more than 3 per cent.

“As the higher cost of listing and high interest rates environment continues to put pressure on households’ balance sheets, it’s likely we’ll continue to see values and rents moderate in the coming months,” Ms Ezzy said.

Townsville’s median rental value of $522 was the result of a quarterly increase of 2.6 per cent and 9.8 per cent rise over the year.

Townsville's property sale numbers have been strong since 2021. Picture: CoreLogic.

“Although the majority of markets are still recording positive rental growth, the pace of quarterly growth has eased in most regions, with many renters coming up against affordability constraints and some looking for ways to share the additional rental burden by forming larger households,” she said.

Looking ahead, Ms Ezzy said that similar to the broader Australian market, affordability would remain a key challenge for regional Australia.

“While growth in both values and rents are losing momentum, affordability continues to be a significant issue across the regions,” she said.

“Dwelling values have risen by 52.5 per cent since the onset of the pandemic, and rents are up 39.1 per cent, compared to a 33.4 per cent and 35.4 per cent rise in the capitals.”

Originally published as CoreLogic Regional Market Update reveals the strength of Townsville’s property market