Best regional QLD areas for property investment 2024

Looking for the best places to buy an investment property in regional Queensland?

Here, we round up the latest data and expert insights on how regional Queensland property prices tracked over the year and where they could be headed in 2024.

Let’s start with an overview of how the regional Queensland property market performed in 2023.

How was the property market in regional Queensland in 2023?

How was the property market in regional Queensland in 2023?

Leading regional Australia’s price recovery in 2023, the latest figures from CoreLogic reveal regional Queensland property prices are at a record high, gaining +8.0 per cent since their recent trough.

This growth outpaces the recovery in regional NSW (+2.8 per cent), Tasmania (+0.8 per cent) and Victoria (+07. per cent) since their respective troughs, that followed in the wake of pandemic-driven price surges. In Queensland, regional dwelling prices rose +47.6 per cent from the onset of Covid to their May 2022 peak but dropped to -5.4 per cent by January 2023, with CoreLogic recording a median dwelling value of $549,562.

Since climbing back up in March (+0.3 per cent), the regional Queensland market continued to make steady gains, with median dwelling value now at $602,256. As the ABC reports, all of Queensland’s regional centres – excluding the Sunshine Coast and Townsville – are at their peak with prices continuing to rise.

CoreLogic founder Tim Lawless says the rise in housing prices in regional Queensland comes down to affordability following the Covid-era boom around Brisbane and its surrounding areas. “A lot of those more far-flung markets like Cairns or Mackay and the Whitsundays, they’re a lot more affordable,” Tim says. “They didn’t see the same trends as south-east Queensland saw through the pandemic. Most of those markets are showing immediate value well below $500,000.”

Real Estate Institute of Queensland CEO Antonia Mercorella agrees, saying the regional Queensland housing market has emerged as a relatively affordable choice for buyers who, depending on area, could also achieve attractive annual growth. 

“Those seeking value for money are finding it in our regional economic powerhouses – Toowoomba and Townsville,” Antonia says. “You’re looking at an annual median house price of $530,000 in Toowoomba and just over $400,000 in Townsville – well below Greater Brisbane’s $760,500 median price point.”

In terms of gain, CoreLogic’s Regional Market Update November 2023 saw Bundaberg claim top spot for highest annual growth in regional Australia, with prices rising +10.8 per cent over the past year, taking median dwelling value to $463,534. Other top performing regional Queensland markets were Rockhampton (+9.8 per cent), Toowoomba (+7.9 per cent), Gold Coast – Tweed Heads (7.3 per cent), Maryborough (+6.2 per cent) and Mackay (+6.1 per cent).

Regional QLD property market predictions 2024

Antonia Mercorella predicts continued price growth into 2024 as a shortage of sales listings, coupled with interstate migration and a tight job market, keep the regional Queensland property market steady.

“Buyers who had hoped a bargain was just around the corner will be sorely disappointed as the shortage of stock is keeping the competition hot,” says Antonia. “Queensland property has shaped up to its age-old reputation as a consistent player, and we expect to see more of the same steady growth as we bring in the new year.” 

Domain chief of research and economics Dr Nicola Powell predicts prices will lift across regional markets in 2024 as ongoing high interest rates continue to drive buyers towards more affordable regions. “Stretched affordability and lower borrowing power will continue to place a ceiling on buyers’ capacity to pay for a home,” says Nicola.

In Queensland, the government is set to double the first-home buyer’s grant from January 2024, which Nicola expects will further increase demand. “We’ll likely see strong rates of growth in certain pockets of those affordable markets because of this increased activity from first-home buyers,” Nicola says.

How are property prices in regional QLD expected to change in 2024?

Experts expect regional Queensland property prices to continue climbing in 2024 after finishing the first half of the year as top performers.

In CoreLogic data for June 2024, dwelling prices in regional Queensland have increased +12.2 per cent over the past 12 months, to a median dwelling value of $643,202. This places Queensland second only to Western Australia (+16.6 per cent) as the nation’s best-performing regional market.

Canstar’s Rising Stars 2024 report ranks Queensland the highest among the regional markets for sales activity and the best for quarterly price growth. As affordability continues to drive home buyers to the Sunshine State, Canstar predicts prices will grow in many regional areas, with the Gold Coast, Gladstone, Townsville, Cairns, Rockhampton and Toowoomba markets shaping up as promising.

NAB predicts house prices in Queensland will rise +3.4 per cent over the next year and 3.7 per cent over the next two years. Confidence in the housing market is high and while rising interest rates are the biggest constraint for buyers in Queensland, NAB expects an undersupply of housing will continue to support price growth.

Domain’s Forecast Report (June 2024) predicts house prices in regional Queensland will rise +2 to +4 per cent and unit prices +3 to +4 per cent over the next year. On the Gold Coast, prices are expected to rise +3 to +6 per cent, while housing prices on the Sunshine Coast could increase by +2 to +5 per cent.

Best suburbs to invest in Queensland: Regional edition

In its Fast 50 shortlist of top investment suburbs, Smart Property Investment predicts these regional Queensland suburbs could offer the best value for investors over the next 12 months: 

• Kearneys Spring (Toowoomba), median house price $610,000, up +22.6 per cent over the past year.
• Wilsonton Heights (Toowoomba), median house price $432,500, up +13.8 per cent over the past year.  
• Frenchville (Rockhampton), median house price $435,000, up +11.5 per cent over the past year.
• Kepnock (Bundaberg), median house price $435,000, up +11.5 per cent over the past year.
• Slacks Creek (Logan), median house price $570,100, up +8.6 per cent over the past year.
• Leichhardt (Ipswich), median house price $431,500, up +8 per cent over the past year.
• Murrumba Downs (Moreton Bay), median house price $795,000, up +6.6 per cent over the past year.

Using data from PropTrack, realestate.com identifies these regional Queensland cities as booming over the past 12 months:

• Townsville, median house price $484,000, up +18 per cent over the past year.
• Rockhampton, median house price $443,874, up +17 per cent over the past year.
• Bundaberg, median house price $520,000, up +17 per cent over the past year.
• Gold Coast, median house price $1,065,918, up +16 per cent over the past year.
• Toowoomba, median house price $595,549, up +14 per cent over the past year.

For the best Queensland regional areas to buy investment property, Smart Property Investment lists these suburbs as having the highest average annual rental yields:

• Moranbah in the Isaac region, rental yield +12.52 per cent.
• Collinsville in the Whitsunday region, rental yield +11.38 per cent.
• Scottville in the Whitsunday region, rental yield +11.09 per cent.
• Dysart in the Isaac region, rental yield +10.82 per cent.
• Mornington in Mount Isa, rental yield +10.63 per cent.
• Koongal in the Rockhampton Region, rental yield +10.25 per cent.

Other regional Queensland investment property hotspots

For investors, Terry Ryder of Hotspotting picks these as the best suburbs to buy in regional Queensland: