10 best suburbs in Regional Queensland to invest in 2024
Regional Queensland is poised to repeat its 2023 performance as one of the leading regional market jurisdictions in the nation. We ranked its prospects as the fourth best in the nation in 2023, and in this new analysis, it scores a similar rating – fifth equal (with Melbourne) and the best of the regional markets.
20 Mar 2024
Regional Queensland is poised to repeat its 2023 performance as one of the leading regional market jurisdictions in the nation. We ranked its prospects as the fourth best in the nation in 2023, and in this new analysis, it scores a similar rating – fifth equal (with Melbourne) and the best of the regional markets.
Compared to the 2023 analysis, Regional Queensland has improved its national ranking in four of the five metrics – and maintained its rating in the fifth category. This suggests prices and rents will grow in many of the major regional markets in the state.In 2023, according to CoreLogic data, Regional Queensland recorded the second highest growth in its median house price (up 8.6%) behind South Australia. It also has the second highest growth in the median unit price (up 9.1%) after Western Australia.
We expect Regional Queensland to do as well, or better, in 2024. The year starts with considerable impetus driving the Gold Coast, Gladstone, Townsville, Cairns, Rockhampton and Toowoomba, and growing signs of resurgence in the Sunshine Coast market. The exodus to the affordable lifestyle trend continues to drive new residents to Queensland. It remains as a national leader on internal migration, and many investors favour the state for its high growth image, particularly now the prospect of rising land taxes has been killed off.
Top 10 Rising Stars
- Bargara
- Berserker
- Blacks Beach
- East Toowoomba
- Golden Beach
- Kingaroy
- Merrimac
- Nambour
- Varsity Lakes
- West Gladstone
Bargara
Bundaberg is a key regional city in Central Queensland, with a growth economy and a popular lifestyle. The seaside enclave of Bargara, close to the renowned Mon Repos Turtle Centre, is attracting buyers. Both houses and units are selling quickly, and growth rates, both short-term and long-term, are high. Dwellings are typically in the $500,000s and $600,000s, but sea frontage fetches well over $1 million.
Berserker
Rockhampton is another of Central Queensland’s key regional cities, with a strong and diverse economy supporting an affordable lifestyle. Berserker is one of the cheapest suburbs (median price below $300,000, despite growth averaging 9% per year over the past decade) and dwellings sell within two to three weeks. Investors like it for the high rental yields and the possibility of buying cheap houses and renovating. It pays to check the flood Maps.
Blacks Beach
This location is all about affordable lifestyle. It has Mackay’s longest beach and is a popular residential suburb in a growing regional city. Price growth has been strong over the past decade, but the median house price remains in the low $400,000s. Houses sell typically in about three weeks. Blacks Beach is popular with renters, with vacancies just 0.7% and rental yields above 6%.
East Toowoomba
Toowoomba is one of Queensland’s most important regional cities, with a game-changing new airport, the Inland Rail Link targeting Toowoomba as the key Queensland hub, and a $1 billion hospital on the way. East Toowoomba is a central location alongside Queens Park and Botanic Gardens. The long-term capital growth rate is 11% per year and houses now typically fetch in the $800,000s. Units are half the price and sell within a fortnight.
Golden Beach
The Sunshine Coast economy has been transformed by a $20 billion infrastructure investment, and property values have soared in the past five years. Southern suburbs like Golden Beach have growing demand because they offer a lifestyle at prices well below those around Noosa in the north. The long-term capital growth rates are 11% per year for houses and even higher for apartments. Vacancies are well below 1%.
Kingaroy
This regional centre has growing importance as the headquarters of the South Burnett region – a key agricultural region with a growing tourism industry. There is significant investment being directed to this region, including large-scale alternative energy projects and a major new hospital. The long-term growth in house prices has been strong, but the median remains in the mid-$300,000s, with vacancies just 0.4% and yields above 6%.
Merrimac
The Gold Coast is currently one of the nation’s strongest property markets and the inland suburb of Merrimac is delivering spectacular market data. Long-term growth rates are above 10% per year for both houses and units, homes sell in two to three weeks, and vacancies are below 1%. Rental yields are also high. It has good access to the Pacific Motorway and the facilities of the Robina Town Centre.
Nambour
The Sunshine Coast has become an expensive market following big price growth in recent years. The inland town of Nambour provides one of the few affordable options, with median prices of $660,000 for houses and $450,000 for units (despite long-term capital growth rates above 10% for both). It has good amenities and rail links to Brisbane, which is something other coastal suburbs lack. Vacancies are 0.4%.
Varsity Lakes
This is one of the Gold Coast’s most popular suburbs, with over 400 house and unit sales in the past year. Homes are typically selling within three weeks, with prices rising both in the short-term and longer-term (capital growth rates of 9% for houses and slightly less for apartments). Varsity Lakes has proximity to Bond University and Robina Town Centre, and rental vacancies are just 0.6%. The lake frontages appeal to buyers.
West Gladstone
The industrial city of Gladstone has shrugged off its boom-bust image from the past and now presents as a safer investment option. It offers affordability, low vacancies and high rental yields. West Gladstone prices have recovered strongly in recent years, but the median house price remains in the low $300,000s. West Gladstone is close to Gladstone Central and has lots of green spaces.
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Our Metrics
Sales volumes
There was a resurgence in buyer demand in Regional Queensland in the second half of 2023 and that momentum gives it a running start to 2024. In terms of impact from rising sales activity, we rank Queensland the highest among the regional markets and fourth in the nation overall, helped by an uplift in demand for the Gold Coast and other key regional cities.
Quarterly price growth
Almost two-thirds of Regional Queensland locations have recorded quarterly prices elevating above our threshold, which ranks it fourth in the nation (compared to seventh in the 2023 report) and the best of the regional markets. This mirrors the improvement in sales activity recorded recently.
Vacancy rates
Most, but not all, Regional Queensland suburbs and towns have vacancies below 1%. It has improved its ranking on this metric from eighth in 2023 to sixth in this new report.
Rental growth
Regional Queensland has maintained the position it held in the 2023 report as ranking eighth in the nation. With the extraordinary state of the Australian rental market, Regional Queensland’s eight out of ten locations have recorded annual rental increases above 10%.
Infrastructure spending
We commented in previous reports about the infrastructure impact throughout Regional Queensland. This phenomenon will continue in 2024. There are major rail, road, hospital and energy developments across the state. The Gold Coast and Sunshine Coast, which will play major roles in the 2023 Olympics, are particularly busy – while Townsville, Gladstone, Rockhampton and Toowoomba all have big works under way.
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| Suburb | Median price | 1-yr growth | 10-yr average annual growth (%pa) |
Vacancy rate |
Median rental yield |
Initial Outlay (no concessions) on 20% deposit |
Monthly repayments |
|---|---|---|---|---|---|---|---|
| Bargara, Bundaberg |
$650,000 | 6.6% | 11.0% | 0.6% | 4.4% | $147,529 | $3,287 |
| Berserker, Rockhampton |
$285,000 | 11.1% | 9.1% | 0.8% | 8.0% | $57,912 | $1,441 |
| Blacks Beach, Mackay |
$420,000 | 2.2% | 6.3% | 0.7% | 6.1% | $91,410 | $2,124 |
| East Toowoomba | $858,000 | 22.9% | 10.9% | 0.6% | 3.7% | $199, 373 | $4,339 |
| Golden Beach, Sunshine Coast |
$985,000 | 2.1% | 10.9% | 0.7% | 3.6% | $231,036 | $4,981 |
| Golden Beach (Units), Sunshine Coast |
$750,000 | 3.1% | 11.4% | 0.7% | 4.1% | $174,502 | $3,792 |
| Kingaroy, South Burnett |
$350,000 | 20.1% | 9.2% | 0.4% | 6.4% | $74,655 | $1,770 |
| Merrimac, Gold Coast |
$850,000 | 0.2% | 10.4% | 0.8% | 5.0% | $197,371 | $4,298 |
| Merrimac (Units), Gold Coast |
$620,000 | 11.3% | 11.6% | 0.8% | 6.1% | $140,052 | $3,135 |
| Nambour, Sunshine Coast |
$660,000 | -1.5% | 10.6% | 0.4% | 4.8% | $150, 021 | $3,337 |
| Varsity Lakes, Gold Coast |
$938,000 | 2.0% | 9.1% | 0.6% | 4.6% | $219,311 | $4,743 |
| Varsity Lakes (Units), Gold Coast |
$625,000 | 5.8% | 8.4% | 0.6% | 5.6% | $141, 319 | $3,160 |
| West Gladstone | $329,000 | 2.8% | 13.8% | 0.9% | 6.5% | $70,171 | $1,664 |
Source: www.canstar.com.au. Prepared on 22/01/2024. Based on a selection of suburbs’ median prices, growth and rent figures provided by Hotspotting by Ryder. Initial outlay figures include the deposit, stamp duty, mortgage registration and transfer fees; and lenders’ mortgage insurance (LMI) premium for the 10% deposit scenarios. Stamp duty calculated based on an owner occupier purchase of an established dwelling. LMI premium based on Helia LMI Premium Calculator for an owner occupier borrower and a loan term of 30 years. Monthly repayments calculated based on the average variable interest rates of 6.5% (20% deposit) and 6.8% (10% deposit) and a loan term of 30 years. Interest rates based on the average owner occupier, principal and interest variable rate for a loan of $600,000 over the past year, rounded to the nearest 0.1%. Percentage of income based on the average total income by Greater Capital City Statistical Area (ABS Personal Income, 2020-21), adjusted by the ABS Wage Price Index (Sep-2023) for each state.
Cover image source: HarveyBlueStock/Shutterstock.com
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This article was reviewed by our Content Production Assistant, Canstar Ena Warner before it was updated, as part of our fact-checking process.
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