A surge in population growth is fueling a notable increase in commercial property investments in Far North Queensland. The region is experiencing a significant transformation with a projected population rise of 23% to 358,526 by 2036. This growth, coupled with an ambitious infrastructure pipeline featuring over 80 projects, is reshaping the area, attracting new residents and tourists alike.

The commercial property market in Far North Queensland is reflecting this dynamic expansion. Over the past year, nearly $70 million worth of commercial properties have been sold in the region, with yields tightening to below five percent. Notable transactions include a KFC outlet in Ayr selling at a return of 4.87 percent and a convenience retail store in Aitkenvale fetching $6.6 million. These figures highlight a resilient market drawing significant interest from local and interstate investors.

Townsville, as the largest city in regional Queensland and the gateway to Far North Queensland, has seen a remarkable increase in popularity. In 2023, tourism injected $1.2 billion into the city, marking a substantial 17.8% growth compared to 2019. With over $27 billion in infrastructure projects underway, Townsville is emerging as an economic hub and a prime location for commercial property investments.

The city’s appeal lies in its strategic positioning as a gateway to the Northern Australian market, supported by substantial infrastructure investments that enhance its allure to investors. Notable projects like the $88 million hotel complex at the Breakwater precinct, developed by the Morris Group, are elevating the city’s profile and supporting its reputation 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 boasts a diversified economy, with key sectors in education, healthcare, defense, industry, and tourism, providing a solid foundation for commercial investments with growth potential and security.

The broader North Queensland region is experiencing a surge in population growth, driving demand for commercial real estate across various sectors including retail, healthcare, and industry. This growth presents attractive opportunities for investors looking to capitalize on the region’s economic expansion.

In conclusion, the commercial property market in North Queensland, particularly in Far North Queensland and Townsville, is thriving and witnessing increased interest from investors nationwide. The region’s growth trajectory, supported by population influx and infrastructure developments, positions it as a lucrative investment destination with promising long-term returns.