The North Queensland region has emerged as a hotspot for property investment in recent years, fueled by lifestyle changes, housing affordability, and improved infrastructure. The increase in investment activity has given rise to rapid housing value growth in cities like Cairns, Townsville, and Mackay.
As of January 2025, Cairns' median house price reached $685,000, marking a 14.35% increase over the previous year. Townsville’s house prices saw a 27.1% annual increase in December 2024, and Mackay's median house price increased by 24.2% between August 2023 and July 2024.
But it’s not just house prices that are showing positive signs — The Real Estate Institute of Queensland (REIQ) reported in March 2024 that rental vacancy rates in North Queensland were critically low, with some areas like Cook reporting rates as low as 0.0%, reflecting a tight rental market.
With renewed attention to North Queensland, there are increased opportunities for investors to leverage the high rental demand in the region for favourable returns. We’ve done the research for you on 6 of the best investment areas in North Queensland for 2025.
1. Mount Louisa, 4814
Mount Louisa is a family oriented suburb located 8km west of the Townsville CBD. With multiple schools, shopping centres and open spaces in an established residential area, it appeals to first home owners and downsizers. Investors can expect steady returns at 5.1% yield alongside low vacancy rates.
Median house price: $585,000 (+28.6% since April 2024)
Median weekly rent: $550 (+5.8% since April 2024)
Rental yield: 5.1%
Population: 10,110 (ABS, 2021)
Dwellings: 3,926 (ABS, 2021)
2. North Ward, 4810
Located immediately north of the Townsville CBD, North Ward borders the Strand and offers proximity to the beach, restaurants, and nightlife. Properties in North Ward carry a premium with prices over $1 million which have spiked by close to 50% over 12-months. North Ward is ideal for investors with a longer-term strategy seeking both lifestyle-driven growth and rental performance.
Median house price: $1,200,000 (+46.3% since April 2024)
Median weekly rent: $650 (+13.0% since April 2024)
Rental yield: 3.9%
Population: 5,073 (ABS, 2021)
Dwellings: 3,091 (ABS, 2021)
3. Oonoonba, 4811
One of Townsville’s most active growth corridors, Oonoonba is 5km south east of the CBD. Young families and professionals are attracted to the suburb’s walkability and proximity to the city, combined with the affordability of modern house prices at just over $500,000. Oonoonba offers a rare opportunity for investors seeking opportunities in newer estates that have long-term appreciation potential.
Median house price: $510,000 (+18.1% since April 2024)
Median weekly rent: $490 (+5.4% since April 2024)
Rental yield: 5.2%
Population: 2,050 (ABS, 2021)
Dwellings: 1,073 (ABS, 2021)
4. Trinity Beach, 4879
Known for its holiday-town charm, Trinity Beach is 20km from the Cairns city centre, offering a mix of high-end homes and townhouses. As a popular travel destination, Trinity Beach provides investors with high yields from short-term rentals and steady demand from long-term tenants. House prices in Trinity Beach have displayed consistent year-on-year growth since 2021, with median prices now at $750,000.
Median house price: $750,000 (+7.1% since April 2024)
Median weekly rent: $720 (+4.7% since April 2024)
Rental yield: 5.1%
Population: 6,594 (ABS, 2021)
Dwellings: 3,107 (ABS, 2021)
Andergrove, 4740
One of Mackay’s older suburbs, Andergrove is 5km north of the city centre. Affordable, family-friendly and close to schools, Andergrove has experienced steady growth over the past year (22.7%). With median house prices under $500,000 and consistent rental demand, Andergrove is one of North Queensland's high-performing investment suburbs over the last 2 years.
Median house price: $560,000 (+22.7% since April 2024)
Median weekly rent: $600 (+11.1% since April 2024)
Rental yield: 6.0%
Population: 9,924 (ABS, 2021)
Dwellings: 4,176 (ABS, 2021)
6. Kirwan, 4817
Kirwan is one of the biggest suburbs in Townsville and has a well-developed retail, education, and sporting infrastructure. Despite its size, vacancy rates are low, driven by a large population of young families and defence personnel. With consistent rental demand and a strong sales history, Kirwan is often flagged by real estate agents as a low-risk, stable investment area.
Median house price: $550,000 (+27.9% since April 2024)
Median weekly rent: $520 (+7.2% since April 2024)
Rental yield: 5.3%
Population: 20,780 (ABS, 2021)
Dwellings: 8,392 (ABS, 2021)
With property investment activity picking up in North Queensland, the next step for investors is to ensure a consistent source of returns from rental income. As an award-winning property management firm in North Queensland (Best Small Agency in 2021, REIQ Queensland Award), Townsville Rentals helps property owners achieve the best possible business outcomes from their property investment. With a flat fee structure and an experienced team of property managers, we work on your behalf to secure the best tenants and rental income for your investment.