Far North Queensland is hot on the radar of commercial investors, on the back of significant residential growth and development reshaping the region and drawing an influx of new residents and tourists. 

A projected population increase of 23% to 358,526 by 2036 in Far North Queensland, combined with an ambitious infrastructure pipeline of over 80 projects, underscores the region's dynamic expansion. This robust performance is reflected in the commercial property market. 

Over the past 12 months, we have sold almost $70 million worth of commercial property in Far North Queensland. Yields are as tight as sub five per cent with a KFC in Ayr selling on a return of 4.87 per cent while a strong price of $6.6 million was achieved for a convenience retail outlet in Aitkenvale. These factors signal a resilient market attracting substantial investment from both local and interstate buyers.

Outside the southeast corner, Townsville is the largest city in regional Queensland and the gateway town for Far North Queensland. Its popularity has soared in recent times. In 2023, tourists injected a staggering $1.2 billion into this market, up 17.8 per cent compared to 2019.

With over $27 billion in infrastructure projects underway, Townsville stands out as the economic hub, continuing as a hotspot for commercial property investors. 

Several factors contribute to Townsville’s appeal. Its strategic location as a gateway to the Northern Australian market, coupled with significant infrastructure investments, enhances its attractiveness.

The city is undergoing a maturity transformation from, with projects like the $88 million hotel complex at the Breakwater precinct, developed by the Morris Group, delivering the next level of quality to support Townsville’s unofficial title as the Capital of North Queensland.

Investors are drawn to Townsville not only for its promising developments but also for its economic stability. The city benefits from a diversified economy, with strong sectors in education, healthcare, defense, industry and tourism. 

This economic resilience provides a solid foundation for commercial investments, offering both security and growth potential. With its strategic location, economic stability, and robust infrastructure projects, Townsville is well-positioned to continue luring commercial property investors looking for promising long term stable returns.

Overall, the broader North Queensland region is witnessing a surge in population growth, driving demand for commercial real estate. The increase of new residents fuels retail, healthcare, industry and other commercial activities, creating a dynamic market ripe for investment. 

Properties in prime locations offer lucrative opportunities for investors looking to capitalise on this growth. 

The North Queensland commercial property market is thriving, attracting significant interest from investors across Australia. Key sales and ongoing developments underscore the city’s potential as a major investment destination in North Queensland.

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