With property prices rising and rental demand booming, Townsville has become a magnet for savvy investors. According to recent research carried out by Ray White, Townsville’s house prices have grown 17% per annum, the highest among regional cities in Queensland.
Townsville’s investment appeal stems from affordable property prices, strong rental demand (0.96% vacancy rate), and a rapidly increasing residential population.
But when it comes to choosing between a house or an apartment, which delivers better returns?
Real Estate Data on Houses in Townsville
Median house price: $570,000 (28.4% increase over the past 12 months since December 2024)
Average rental price for houses: $520 per week (5.1% increase over the past 12 months since December 2024)
Median house rental yield: 4.67%
House rentals in Townsville are suitable for families and long-term renters. With larger floor plans and more space, houses appeal to tenants who are looking for stability and a place to put down roots.
In 2021, the ABS recorded 64,927 separate houses in Townsville, accounting for 78% of all private residences in the region. This number is likely to have increased due to continued housing development in broader regions such as Douglas, Bohle Plains Mount Low, Burdell, Julago and Alligator Creek.
The latest data from Proptrack shows vacancy rates of 0.96% compared to a national average of 1.2%, indicating a tight rental market. Vacancy rates for houses in Townsville are especially low in well-developed areas like Mount Louisa (0.71%) and Annandale (0.55%).
House prices have risen by 28.4% over the past 12 months to $570,000. Despite the double-digit growth, Townsville’s house prices remain considerably more affordable compared to major Queensland cities like Brisbane, where median house prices are $998,000.
Real Estate Data on Apartments in Townsville
Median unit price: $365,000 (25.8% increase over the past 12 months since December 2024)
Average rental price for units: $410 per week (7.9% increase over the past 12 months since December 2024)
Median unit rental yield: 5.94%
At $365,000, the median unit price in Townville offers a lower entry price for investors, coupled with a higher average rental yield of 5.94%.
However, there are fewer apartment units in Townsville than houses - 2021 ABS data records that high-density dwellings and medium-density dwellings (townhouses) only make up 5.2% and 14.9% of the total private dwellings in the region. Apartment units in Townsville are mainly located near the CBD, in suburbs such as West End and North Ward along the Strand.
In terms of rental demand, units across Townsville have a median vacancy rate of 1.15%, according to the latest data from Proptrack. The vacancy rate in areas like Pimlico (0.67%) and Hermit Park (1.17%) offers a glimpse of the rental potential close to the city centre.
Read our recent article on Townsville Property Market Outlook for 2025 here >> https://www.townsvillerentals.com.au/townsville-property-market-outlook-2025/
Comparing Apartments and Houses for Investment
Price of Apartments and Houses
Apartments in Townsville have a lower median price of $365,000, compared to the median price of houses at $570,000. Both apartment and house properties in Townsville are experiencing rapid annual growth (25.8% and 28.4%, respectively), a trend that is likely to continue as the region continues to develop.
Factors of Apartment vs House Investment in Townsville
Apartments in Townsville offer a more affordable entry point, with a median price of $365,000 and a strong average rental yield of 5.94%. They are typically concentrated in the city centre—suburbs like North Ward, West End, and Pimlico—making them attractive to singles, couples, and short-term renters seeking proximity to amenities and the Strand. While vacancy rates are slightly higher than houses, demand remains solid, especially near the CBD.
Houses, on the other hand, command a higher price point at a median of $570,000, but appeal to families and long-term tenants looking for more space and stability. Rental yields average 4.67%, and suburbs like Mount Louisa and Annandale report ultra-low vacancy rates, some below 0.6%. Importantly, houses make up the vast majority of Townsville’s housing stock—and with infrastructure upgrades unlocking 2,600 new homes in Mount Low, future supply and growth potential are strong.
For investors, the choice between a house and an apartment comes down to goals. Apartments may offer better short-term returns and affordability, while houses deliver long-term value, tenant retention, and future capital growth—especially in emerging corridors like Bohle Plains, Burdell, and Julago.
Whether you're seeking high-yield rental income or growth in a rising market, understanding these differences will help you make a smarter, more strategic investment in Townsville real estate.
Townsville Infrastructure Boost Housing Supply
In July 2025 One of the most significant outcomes of Townsville’s recent $29.5 million infrastructure funding is the unlocking of land in Mount Low, paving the way for 2,600 new homes over the coming years
For investors, this marks a rare opportunity to secure property in an area on the cusp of transformation. Mount Low already appeals to families and long-term tenants due to its proximity to schools, beaches, and transport routes. With infrastructure now supporting expanded development, the suburb is set to become a hotspot for new builds, house-and-land packages, and rental growth.
For property investors, infrastructure spending like this often signals a rising tide of value—supporting both tenant appeal and future price growth.
Rental returns summed up
Apartments offer slightly more favourable rental yields than houses in Townsville (5.94% vs 4.67%). However, houses tend to attract longer-term tenants, which may reduce the costs associated with tenant turnover and vacancy.
Available supply
Most properties in Townsville are standalone houses, meaning that investors will have more options to choose from when investing in a house. New housing estates are also in development along Townsville’s western growth corridor, presenting future opportunities in the form of new builds and house and land packages for investment.
For many investors, it’s clear that Townsville's property market offers good value – house and unit prices are a fraction of the cost of an equivalent property in Brisbane and the Gold Coast.
As local property managers in Townsville, we specialise in helping investors maximise rental returns and maintain property value, whether it’s a house, townhouse, or apartment unit. Our Townsville property management services handle everything from the day-to-day management of your investment property to compliance with tenancy regulations. We offer a flat fee structure for our clients - get in touch with us to receive a free rental appraisal.