Townsville Property Shortage – 2025 Study Shines New Light

A new report from property industry veteran Michael Matusik highlights the critical property market shortage in Townsville, which continues to drive prices higher for prospective buyers.

The study, which was commissioned in March 2025, highlights the disparity between population growth and new housing developments, particularly apartment buildings and complexes, and what this shortage could mean for buyers as the local population continues to surge ahead of the 2028 Brisbane Olympic Games. 

Townsville’s Continued Property Market Growth 

For anyone who has kept half an eye on the Townsville property market over the last few years, it should come as little surprise that the supply of new housing is nowhere near meeting or keeping up with demand. With more and more families and lifestyle seekers flocking to Townsville, new developments are nowhere near meeting the demand.

The result?

Property prices in Townsville continue to surge. Median house prices in 2024 alone surged by some 28%, with apartments increasing by some 29%. The increase is staggering when compared to the national average of just 3.5% over the same period.

Quantifying Townsville’s Critical Undersupply

Townville’s property market shortage isn’t just a feeling – it’s a reality.

Townsville added 3,850 new residents in 2024, its most significant population increase on record, taking the city’s population to 205,283. And whilst new residents continue to flock to the city, new developments are falling behind.

The Matusik report notes that 1,875 new dwellings would need to be built each year for the next five years to meet forecasted demand. 

The reality is that new developments in Townsville aren’t just lagging behind the population growth, they are also falling on previous years. 

Despite continued population growth and strong demand for new housing, dwelling approvals have declined significantly since 2021. In 2024, there were just 608 new approvals, down from 1,105 in 2021, and only 459 new registrations, a drop from 707 in 2021.

The growing disparity exists as fewer new developments are making it through to completion and registration, primarily due to cost, workforce, and delivery challenges in the current market. 

What Undersupply Means

A severe undersupply of new homes is reshaping Townsville’s property market. Despite rapid population growth, new developments continue to fall.

The outcome? 

Just one new dwelling is currently being approved for every six adults seeking housing, and registrations are even lower at one for every nine adults.

A persistent gap between housing demand and supply continues to put upward pressure on both prices and rents.

For owner-investors, the news couldn’t be better. For those looking to move to Townsville, the persistent gap will leave many second-guessing their choice to relocate. The outcome could lead to a missed opportunity for local economic development in the region, potentially setting back progress from where it could have gone. 

Closing the Gap

Closing the gap between housing supply and demand requires targeted action from both the private and public sectors. The approval process must be streamlined to meet the projected annual demand of 1,875 new dwellings over the next five years.

New developments are, of course, a big part of the equation. But for many, there also needs to be a revaluing of the Townsville region. 

What exactly does this mean? It’s time to acknowledge that Townsville is no longer an afterthought – it’s a first choice for many, particularly downsizers & retirees seeking greener pastures and warmer weather.

It’s easy to view Townsville’s property price surge as a sole reflection of undersupply; however, it’s also worth acknowledging that Townsville’s property market has historically been underpriced. For many years, housing prices did not keep pace with the increased economic investment and opportunities afforded to residents of the Townsville region. 

Yes, housing needs to increase, but it’s also important to acknowledge that Townsville’s property market is still severely undervalued. New, premium developments, such as the Marina Residences, are still priced 35-40% lower per square meter than comparable developments on the Gold Coast.