Douglas, QLD

A regional gem for investors

As housing affordability becomes increasingly challenging in Australia’s major cities, Douglas - a southwestern suburb of Townsville - stands out by delivering both excellent value and solid investment returns.

Strong market performance
Douglas has recorded a 17% increase in unit prices over the past 12 months, reaching a median of $310,000. At the same time, investors are enjoying a notable 7.5% gross rental yield and a tight 1.9% vacancy rate, underlining a high-demand environment for renters.

What’s driving the momentum?

  • Proximity to major institutions
    Douglas is home to both James Cook University and the Townsville University Hospital, attracting students, academics and healthcare professionals seeking nearby accommodation.

  • Infrastructure and connectivity
    The suburb is well served by the Douglas Arterial Road - part of the Townsville Ring Road - ensuring swift access to the CBD and broader region.

  • Diversified economy and major projects
    Townsville’s economy is anchored by strong employment across sectors like healthcare, defence, education, mining and resources. Investments in healthcare and defence infrastructure continue to support job stability and drive housing demand.

  • Waterfront revitalisation boost
    Recent multi-billion-dollar projects - including the Breakwater area expansion and Outer Harbour development - are set to inject growth, tourism and broader economic benefits into Townsville for years to come.

  • Region-wide growth
    Townsville has ranked among Australia’s top three regional property markets recording nearly 27% annual value growth and historically low vacancy rates.

Why Douglas stands out
Douglas combines affordability with impressive investment performance:

  • Unit market: median price $310K, 17% growth, 7.5% yield, 1.9% vacancy

  • Ideal renters: students and health sector employees boost consistent rental demand

  • Lifestyle appeal: a green, family-friendly suburb with parks, shopping and easy commutes

Australian Property Research perspective
We believe Douglas offers a rare mix of strong fundamentals - underscored by demand, infrastructure and economic drivers - that is often out of reach in larger markets. Rental yields well above 7% are uncommon in regional Australia, and coupled with robust price growth, Douglas represents a compelling case for investors seeking both yield and capital upside.

With Townsville’s economic prospects on the rise - backed by major civic and infrastructure projects - Douglas is positioned to benefit from a broader upswing in the region. For investors seeking to enter a buoyant, defensible market, Douglas should be on the shortlist.

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Land values soar in south-east Queensland

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