Townsville’s property market is well positioned for growth as Australia’s property market continues its recovery, attendees at a Knight Frank event in the regional city were told recently.
Held at The Parlour in Flinders Lane, the exclusive lunch event was hosted by Craig Stack and Matt Ryan of Knight Frank Townsville, with Knight Frank’s Chief Economist Ben Burston sharing key trends, emerging themes and discussing the outlook for Townsville and the broader region’s property market in 2026 and beyond.
50 guests were in attendance, with some also providing insights into their industries, including Lewis Ramsay, Chair North Queensland Cowboys and Jamie Walker, North Queensland Business Banking Executive – Regional & Agri Queensland NAB, Jamie Fitzpatrick, Managing Director of FGH Group and Bob McKay, Director of Wulguru Group.
Knight Frank’s Chief Economist Ben Burston said the economy in Townsville and the wider North Queensland region was growing relatively strongly, partly due to a pick-up in domestic tourism and ongoing investment in renewables projects, which was boosting the local commercial property market.
“The industrial sector has returned to growth, both throughout Australia and in Townsville, and the latter is an attractive market for investors,” he said.
“Average prime yields for industrial property in Townsville are 7.9%, which offer strong income returns compared to yields in the 5 to 6% range for Sydney, Melbourne and Brisbane.
“Yields are also higher in Townsville for office assets, sitting at around 8% for the region, compared to prime yields in Sydney at 5.75%, Melbourne at 6.75% and Brisbane at 7.25%.
“Office vacancy rates are also generally lower in Townsville, with premium and A grade vacancy estimated at 4.5% and 7.3% respectively, much lower than the national average for premium (11.1%) and A grade (15.4%).
“As Australia’s commercial property markets continue to recover, Townsville is well positioned for growth given the relative strength in the city’s economy and a diversifying industry mix.”
Knight Frank Managing Director Townsville and Mackay Craig Stack said: “We were thrilled to host a successful event that provided our clients with valuable insights into Townsville’s economy, industries and property markets.
“With occupancies at very strong levels across all sectors, we anticipate the next growth phase will be led by rental increases.
“If this rental growth can then be supported by lower cost of borrowings, the next 12 to 24 months will be positive for capital growth.
“The benefit of value growth in a regional area is an increase in equity at a local level. Consequently, enquiry from intending commercial owner occupiers in North Queensland is buoyant.”
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