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Defence operations are driving dynamic growth in Townsville, the unofficial northern capital of Queensland. 

Gateway to the Great Barrier Reef, the spectacular world heritage listed rainforests of the Daintree, and the rolling red plains of the outback, Townsville prides itself on being Australia’s biggest garrison city. 

At the foot of Mt Stuart on the city fringe is Lavarack Barracks, Australia’s biggest Army base. The Government plans to grow the facility as the major training and logistics centre for allied forces, with an additional 500 Defence personnel expected to arrive by 2030. 
 

Investors, holiday makers and job seekers are also discovering the area’s thriving economy and vibrant community.    

Townsville City Council is working with planners and developers to bring new residential land to market. Aging homes, a legacy of the mining era, are giving way to new suburbs as the city moves to increase housing supply.1 
 

Defence Housing Australia (DHA) too has been building its portfolio of accommodation to meet the needs of incoming Defence families.  

It has its sights on Townsville’s northern suburbs, particularly ones close to the Ring Road, such as Burdell, Bohle Plains, Cosgrove and Shaw. It is also looking to properties that offer easy access to the Barracks and are close to shopping centres and facilities including the James Cook University and James Cook University Hospital. 
 

The greatest demand is for new and freshly renovated three- and four-bedroom houses, as well as new apartments and townhouses for single Defence personnel.  

Properties with a DHA lease are striking a chord with investors, who can select a house and land package from a builder of their choice, or from a range of pre-approved packages**. Providing it meets DHA’s requirements for location, space, comfort and finish, DHA can commit to a lease before the build has even commenced.  
 

This gives investors a new property and all the benefits that make leasing with DHA one of the easiest ways to invest in Australian real estate. Backed by the Australian Government, the arrangement is particularly ideal for remote owners looking for secure returns and less stress. DHA’s exclusive model includes: 

  • Guaranteed* rent paid in advance, even if the property is empty 
  • Trusted Defence members occupying your property  
  • Long-term leases from 3 to 12 years 
  • A single property care fee that includes most non-structural repairs 
  • Independent rent reviews to keep pace with the market 
  • An online portal to make managing the paperwork easy 

In the past three years, Townsville has seen its biggest population increase in a decade. The number of new residents grew by 500 per cent in the 12 months to March 2023.2  

Property prices have grown by 16 per cent this year taking Townsville’s medium house price to $472,000. It is an affordable location for investors feeling priced out of southern capital cities.   
 

Rentals are in short supply and the signs are good for investors looking for capital growth. 

To help start your property search, we’ve compiled a list of pre-approved house and land packages on our website. You can buy these directly from third-party agents or builders, with DHA agreeing to lease them on completion**.  

 
Alternatively, you can use the online enquiry form to connect with our Townsville leasing team or call 133 342. 
 

* Rent may be subject to abatement under certain circumstances such as loss of enjoyment or amenity, or breach of lease terms. Rent is paid where the property is habitable. Should a property become uninhabitable during the term of the lease, or lessor breaches the lease terms, the rent may cease or abate and the lease may be terminated by DHA. Guaranteed rent is subject to the terms of the lease. DHA does not take into account an investor's objectives or financial needs. Investors should always seek appropriate independent advice before making any investment decisions with DHA. 

** It’s important to understand that DHA is not selling these properties directly. We have assessed the property location, plans and inclusions and committed to a long-term lease on completion of construction, if delivered to the agreed specifications in the DHA Offer to Lease. However, this is not an endorsement of each individual builder.

 

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