Best Regional QLD Markets for First-Time Investors

Regional Queensland has become one of Australia’s most lucrative investment pockets. Affordable housing, rising urban-to-rural migration, and continuous infrastructure funding have made cities like Townsville, Gladstone, and Mackay ideal for new and seasoned property investors.

Investors looking to make their first foray into the market should consider the long-term capital growth and strong rental return potential offered by markets in regional Queensland. As a local investment builder in North Queensland, we've gathered the latest insights on the best regional Queensland markets that suit the circumstances of first-time investors.

Regional QLD Market Performance

As of Q3 2025, the median house price in regional Queensland’s property market has risen year-on-year by 9.7% to $771,371 (Cotality). Compared to Brisbane’s median house price of $1.1 million during the same period, it’s easy to see why new and seasoned investors alike are looking to regional areas for real estate investment. 

Regional Queensland also showcased strong rental performance in Q3 2025 - house rentals increased by an annual rate of 8.3%, while unit rents rose by 6.5%. The average gross rental yield across the region Queensland was 4.3% in Q3 2025, higher than the national average of 3.7%.

Top Performing Regional QLD Markets for Investment

1. Townsville

Townsville’s double-digit growth across both house and unit prices from December 2024 to December 2025 is the biggest indicator of investment potential. As the largest city in North Queensland, Townsville's population is forecasted to increase from 204,541 in 2024 to 264,899 by 2046. Demand for housing in Townsville is going to continue placing pressure on rental prices, offering consistent returns.

2. Cairns

Cairns’ economy continues to grow as a result of increased migration from the south, local and international tourism, to increased healthcare and education opportunities. Infrastructure upgrades to the Cairns international airport terminal (due to be completed by end of 2025) and the Cairns Hospital are also driving local job opportunities and, by extension, demand for rental properties.

In terms of investment potential, Cairns has a rental population of 32.5% and a low vacancy rate of 0.76%, indicating a tight rental market and high housing demand.

3. Mackay

Mackay’s coastal landscape is a huge draw card for those looking for a sea change or a more relaxed pace of living. Coupled with ongoing development in the region such as the 20-year Mackay Waterfront project and the Mackay Hospital expansion, rental properties in Mackay are only going to increase in demand.

Mackay investment potential is marked by high median rental yield for both houses and units (5.22% and 6.38% respectively), and relatively affordable housing options that suit investors with a modest budget.

4. Gladstone

Gladstone has seen a nice increase in real estate performance over the last five years, driven largely by affordable housing, high rental demand, and major infrastructure development in the region. Gladstone’s year-on-year growth of 22.72% for houses showcases the potential for long-term capital growth. As of December 2025, the median house price in Gladstone is $540,000.

5. Rockhampton

The capital of Central Queensland, Rockhampton will always have a strong economy rooted in agriculture, particularly as Australia’s main source of beef. Rockhampton’s housing market has continued to strengthen - the median house price has increased by 24.06% over the past year from December 2024 to December 2025.

Regional Queensland is ripe with opportunities to invest in real estate. At Builder Direct, we offer house and land packages for investment in Cairns and Mackay based on tangible market insights. Contact our team to learn more about our process and how we can help you build your first investment property in regional Queensland.