Townsville Suburb Defies Price Curve with New Land Release

 

A new land release in Rasmussen has hit the market as Townsville’s property sector continues to experience strong price growth, tight supply and high rental yields.

Residential community Somers & Hervey has launched 28 lots starting from $185,000* in its latest stage, ‘Parsonia’, following the rapid  sell-out of five previous stages that saw more than 100 parcels of land sold in just 16 months.

General Manager of Urbex Realty, Craig Covacich, said the decision to bring the new stage to market was directly driven by buyer demand.

“We’ve seen sustained momentum across Townsville’s property market, with stock levels shrinking faster than they can be replenished. The pace of sales at Rasmussen has accelerated as demand continues to outpace supply,” Craig said.

Townsville’s median house price has climbed more than 23 per cent in the past year to $562,000, while residential land values have surged 24.2 per cent to reach a median of $192,500*. Despite this, land in the city remains more affordable than in most capital cities and continues to attract a steady flow of first home buyers, investors, and interstate relocators.

“Townsville has become one of the most closely watched regional markets in the country due to its strong combination of affordability, rapid price growth, low vacancy rates and high rental yields. Despite these figures, relative affordability remains a key drawcard, especially for buyers priced out of major cities,” Craig said.

Investor interest remains high, with the latest PropTrack data showing rental yields in Rasmussen between 4.6 and 5.4 per cent.* Townsville’s vacancy rate has tightened to just 0.96 per cent, while rents have increased by more than 10 per cent in the past year. Data from the Real Estate Institute of Queensland indicates that more than 30 per cent of Townsville’s population are renters, placing ongoing pressure on an already constrained market.*

Craig said government incentives were further fuelling demand.

“The Queensland Government’s $30,000 First Home Owner Grant for new builds up to $750,000 adds a compelling reason for buyers to act now,” Craig said.

The grant applies to builds commenced between 20 November 2023 and 30 June 2026 and adds real incentive for buyers to act swiftly.

“The combination of market momentum, government support, and shrinking stock levels means available land is being snapped up faster than ever. We expect Parsonia to follow the same pattern as earlier stages.”

Major infrastructure investments in defence, mining, renewable energy, health, and education sectors are increasing long-term confidence in Townsville, while post-pandemic migration continues to bring families and downsizers seeking lifestyle changes to the region.

According to building approval data, development activity in Townsville is beginning to recover after a slower 2023, with approvals in the 2024 – 2025 financial year already outpacing the previous year. Analysts suggest continued demand and infrastructure-led population growth will keep upward pressure on property values in the years ahead.

“Land in Townsville is still affordable, and Townsville isn’t just a smart financial investment, it offers a highly desirable lifestyle backed by major infrastructure investment and long-term population growth,” Craig said.

Nestled between Mount Stuart and The Pinnacles, Somers & Hervey boasts seamless connectivity thanks  to a new on-ramp from Beck Drive to the Ring Road. This provides  residents with easy access to key  amenities, including James Cook University, Townsville Hospital, and Lavarack Barracks. The community is conveniently located  just a six-minute drive away from quality schools, childcare centres, shops and dining opportunities and just under a 30-minute commute to Townsville’s city centre.

Interested buyers are encouraged to register their interest or visit https://somersandhervey.com.au/ for more information.