Best regional QLD areas for property investment 2025

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 2025.

Let’s start with an overview of how the regional Queensland property market performed in 2024.

How did the property market in regional Queensland perform in 2024?

Regional Queensland’s property market continued to deliver strong performances in 2024, with CoreLogic reporting a +10.5 per cent rise in dwelling values for the year. However, the pace of growth did begin to ease in the second half of the year as affordability constraints and high interest rates tempered activity.

Despite this recent slowdown, prices remain at record highs, with values now sitting +68.1 per cent higher than they were at the onset of the pandemic in 2020 and an impressive +88.2 per cent higher over the past decade, reflecting sustained long-term strength across the region.

Migration patterns have played a key role in maintaining demand across Southeast Queensland. According to The McGrath Report 2025, the Sunshine Coast recorded the highest rate of net migration from capital cities to a regional area, accounting for 11.8 per cent of total net migration in the year to March 2024, with the Gold Coast following closely behind at 10.8 per cent. This trend highlights the continued appeal of lifestyle-focused, coastal regions, especially within commutable distance to Brisbane.

Investor activity in regional Queensland has also been significant. The McGrath Report noted that investor lending accounted for +38.2 per cent of all housing market finance commitments in Queensland as of April 2024, underscoring the state’s attractiveness for property investors amid a tight rental market and competitive yields.

CoreLogic’s Regional Market Update further identified strong market performance in areas with diversified economies and infrastructure improvements. Townsville and Mackay were among the standout performers, with Townsville’s annual price growth reaching +26.9 per cent as of October 2024, driven by limited supply and a healthy local economy.

While growth has moderated, regional Queensland continues to benefit from a combination of lifestyle appeal, population growth, and solid economic fundamentals, keeping the market buoyant heading into 2025.

Regional QLD property market predictions and price forecasts 2025

Experts anticipate continued growth in regional Queensland’s property market throughout 2025, driven by factors such as interstate migration, housing supply constraints, and potential interest rate cuts.

Nerida Conisbee, Chief Economist at Ray White, suggests that ongoing interstate migration will bolster Queensland’s regional property markets. She notes that challenges in the construction sector and housing supply issues are likely to contribute to price growth across the state. Additionally, potential interest rate cuts could further stimulate the market. 

However, some experts advise caution regarding certain areas. Eliza Owen of CoreLogic points out that while the Sunshine Coast and Gold Coast have experienced significant growth, there are signs of a slowdown in these markets. She highlights that more affordable regions further north in Queensland may present better opportunities for growth in 2025. 

Propertyology’s 2025 Property Market Outlook takes a closer look at specific regions and highlights some of the locations that are expected to outperform in the year ahead. They have a particularly sunny outlook on Mackay, Bundaberg and the Fraser Coast, citing major infrastructure developments and more affordable property prices as reasons these could prove to be 2025 hotspots. 

Overall, while regional Queensland’s property market is poised for growth in 2025, performance is expected to vary across different areas. Investors should consider factors such as local economic conditions, infrastructure developments, and housing supply when making investment decisions.

Best suburbs to invest in regional Queensland in 2025

According to CoreLogic data, these QLD regions had the highest 12-month growth in dwelling value over 2024:

• Gladstone - median dwelling value $490,427, annual growth +27.2%
• Townsville - median dwelling value $518,082, annual growth +26.9%
• Rockhampton - median dwelling value $502,195, annual growth +21.0%
• Mackay - median dwelling value $547,894, annual growth +19.2%
• Warwick - median dwelling value $468,337, annual growth +18.9%

But past growth isn't the only factor that investors should consider. Here are some expert picks for top regional QLD suburbs that investors should be looking at in 2025.

Caloundra West, QLD 4551

Caloundra West has become a rising star on the Sunshine Coast, with a median house price of $985,000 and annual growth of +10.7 per cent. The McGrath Report 2025 highlighted its increasing popularity due to its relative affordability compared to the neighbouring beachside suburb of Caloundra. The suburb’s proximity to the coast and the ongoing Stockland Aura development make it a desirable location for lifestyle buyers and investors alike.

Townsville, QLD 4810

Townsville continues to draw attention from investors with a median house price of $600,000 and annual growth of +13.2 per cent. The McGrath Report pointed to the city’s evolving cosmopolitan atmosphere, including hatted restaurants, breweries, and beautiful beaches, while noting it offers some of Queensland’s highest rental yields. The combination of strong growth and lifestyle appeal makes Townsville a standout for 2025.

Mackay, QLD 4740

Mackay has a median house price of $515,000 with impressive annual growth of +14.4 per cent. Propertyology's Property Market Outlook 2025 report has forecast continued growth of between +12 per cent and +16 per cent for 2025, citing a $250 million hospital expansion, urban development projects, and exceptionally low housing supply as key drivers. The city’s affordability and above-average rental yields make it a prime investment destination.

Toowoomba, QLD 4350

With a median house price of $616,250 and annual growth of +14.1 per cent, Toowoomba is positioned for continued success. Propertyology predicts further price gains of +9 per cent to +13 per cent in 2025, with investor confidence supported by low vacancy rates and a strong local economy. Toowoomba’s population of approximately 185,000 and a high rate of property turnover signal ongoing demand.

Frenchville, QLD 4701

Frenchville, located in the Rockhampton region, boasts a median house price of $529,000 and +15 per cent annual growth. Featured in Smart Property Investment’s Fast 50 report, the suburb is known for its spacious homes, family-friendly community, and proximity to Rockhampton Airport. Its combination of lifestyle amenities and strong growth figures makes it a solid choice for investors.

Kepnock, QLD 4670

Kepnock, in Bundaberg, offers a median house price of $500,000 and annual growth of +11.7 per cent. SPI's Fast 50 report highlighted its peaceful streets and affordable housing, making it ideal for first-home buyers and families. The suburb’s schools, parks, and strong community feel add to its investment appeal.

Leichhardt, QLD 4305

Leichhardt, located in Ipswich, recorded a median house price of $563,000 and annual growth of +21.5 per cent. SPI's Fast 50 report described it as an affordable and growing community with its own golf course and proximity to Wulkuraka Station. Its mix of affordability, accessibility, and lifestyle amenities positions Leichhardt as a key investment suburb in 2025.

Coomera, QLD 4209

Coomera, with a median house price of $835,000 and annual growth of +11.3 per cent, stands out for its infrastructure growth. REA’s Hot 100 Suburbs 2025 list cited the upcoming public and private hospitals, as well as its role in the 2032 Olympic Games, as key factors driving demand. Its strategic location between Brisbane and the Gold Coast, along with sought-after schools, makes it a prime investment choice.

Gatton, QLD 4343

Gatton, with a median house price of $520,000 and annual growth of +20.9 per cent, has been named by REA’s Hot 100 Suburbs report as a top investment pick for 2025. Known as the administrative hub of the Lockyer Valley food bowl and home to the University of Queensland’s agricultural campus, it offers affordability within commuting distance to Brisbane. Economic growth and rising property values reflect its strong investment potential.