Townsville approves 14-storey tower with 218 apartments near CBDUpdated

Townsville City Council granted development approval on July 9 for a $142 million residential and retail tower at 68 Palmer Street. The project includes 218 apartments ranging from one to three bedrooms plus 1,800 square metres of ground-level shops and cafes.

The approval arrives as Townsville records its strongest population inflow in five years. Military transfers to Lavarack Barracks and increased mining support roles have pushed rental vacancy below 1.8 per cent in the inner suburbs. The new tower sits two blocks from the Strand waterfront and one kilometre from the Townsville Hospital precinct, both areas that have seen consistent price growth above the city median of $390,000.

Local demand drivers

Buyers from Bohle Plains and Idalia are already circling the off-the-plan release. Those northern and southern growth corridors recorded 14 per cent price rises in the past 12 months according to CoreLogic data released last month. Investors targeting 6 per cent gross yields have shifted focus to central sites because new stock on the fringe takes longer to reach full occupancy.

The Palmer Street site previously housed a low-rise office building owned by a local super fund. Demolition is scheduled to begin in October once final engineering plans receive sign-off. Construction is expected to run 26 months, with first residents moving in by early 2029.

Next steps for buyers and investors

Marketing of the 218 apartments starts next week through three local agencies. Deposits of 10 per cent will be required to secure units priced from $365,000 for one-bedroom apartments up to $685,000 for three-bedroom corner units with river views. The developer has set aside 15 per cent of stock for Defence Housing Australia under an existing master agreement.

Prospective purchasers can inspect the display suite at 112 Flinders Street from Monday. Council planning officers will hold a public information session at the Civic Theatre on July 22 to outline traffic and parking arrangements during construction. Early registration is advised because similar inner-city projects in recent years reached 70 per cent pre-sales within eight weeks of launch.