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Moving into 2025, Queensland’s real estate market is on an upward trend. More specifically, regional Queensland has experienced an average growth rate of 12.2% over the past 12 months since June 2024.
The growth is most prominent in the tropical regions of North and Far North Queensland where regional city centres like Cairns and Townsville are undergoing rapid development and population growth.
For homebuyers and property investors looking to regional markets in 2025, North Queensland presents favourable opportunities worth keeping an eye on. This article covers the property market outlook and potential for North QLD and Far North QLD for 2025 and beyond.
A Closer Look at Northern Queensland
Population: 234,283 (North Queensland), 289,993 (Far North QLD) as of 2021, ABS
The tropical region of North Queensland spans over 80,000 km2 of land, bordering the south of the Mackay Region southern boundary. Far North Queensland sits above this region and shares a similar climate.
A lot of North Queensland’s land is undeveloped — it is common for housing estates in developed cities and areas to feature dramatic backdrops of the natural, empty landscape, as well as proximity to national parks. The untouched nature of the North is a big contributor to the overall relaxed lifestyle and atmosphere in the region.
North Queensland's property market is an affordable market compared to major cities like Brisbane and Sydney and is especially favoured by first-time home buyers. With lots of vacant land, housing options in North QLD often have larger lots to build on, providing good value for money.
Potential Real Estate Investment Areas In North QLD
Mackay
With a median house price under $500,000, Mackay has one of the most affordable real estate markets for a regional city. A big draw for living and investing in Mackay is the upcoming $250 million hospital expansion and urban waterfront development. These developments, alongside the strong economic performance of the local sugar and mining industries, are set to drastically improve Mackay’s infrastructure.
Mackay is well connected to the rest of Queensland via two major highways, the Bruce Highway and the Peak Downs Highway, and has a local airport with services to Brisbane, Cairns, and Townsville.
Median house price: $461,000 (+19.0% from Jan 2024)
Median house rental yield: 6.2%
Median house weekly rent: $530 (+8.2% from Jan 2024)
Townsville
Arguably the most sought-after regional city for investment, Townsville’s median house price has rocketed by almost 25% to a value of $520,000 over the past 12 months. Homes are in short supply in Townsville, and demand for housing has shown no signs of slowing. In fact, house prices are forecasted to continue showing double-digit growth in 2025.
Townsville’s burgeoning local economy and plans for future development in both defence and education sectors have made it a prominent destination in North Queensland.
Median house price: $516,000 (+23.0% from Jan 2024)
Median house rental yield: 5.5%
Median house weekly rent: $550
Cairns
Housing development in North Queensland has seen significant growth in Cairns, driven by a strong tourism market and a rapidly growing population. This has resulted in a tight rental market with a vacancy rate of 0.8% which has pushed rental prices upwards.
Aside from tourism, Cairns has strong sectors such as healthcare, construction, and defence (Navy) which provide a stable foundation for further growth in the region. Investors and prospective homebuyers can look forward to infrastructure developments like the $80 million airport upgrade and the $91 million stadium redevelopment.
Median house price: $685,000 (+24.5% from Jan 2024)
Median house rental yield: 4.8%
Median house weekly rent: $625
North QLD’s Property Market Outlook for 2025
Ongoing developments in regional cities, affordable housing, and a strong network of local economies translate to high performance and growth for North QLD’s real estate market in 2025. As the region develops and continues to attract families and professionals from across Australia, demand for housing is expected to remain high.
Housing supply is the primary limiting factor for those looking to capitalise on North QLD’s potential for real estate growth. Opportunities for home buyers and investors come in the form of new home builds in areas approved for development.
Current affordable house prices are on an upward trend, and buyers should move quickly to secure opportunities for themselves.
As the leading home builder in Cairns and Mackay, Cougar Homes offers an array of stunning home designs for ownership or investment. View our home designs online or get in touch with us today to find out to learn more about what we offer.
