The Whitsunday region has been steadily growing in population over the past recent years with developments experiencing high response rates. Just 5 mins North of the Plantation Palms development, the Bucasia Beach Resort & Spa is asking from $810,000 - $1.85 million for beach side homes. John Archer, local developer of the resort is constructing 37 beach homes with 23 homes fronting the beach and says "he has taken 20 expressions of intersest in the project from locals and people from Sydney and Brisbane since October," and that interest in the project has been boosted since the launch of direct flights between Sydney and Mackay last February." (Australian Financial Review Jan 25-28th 2007) The Australian Financial Review also writes that the population in greater Townsville and adjoining area Thuringowa has increased more than 2.7% in the past 5 years. "The economic and population surge has fuelled strong house price rises. In the year to June 2007 the median house price jumped 23.9 per cent to hit $339,000. The five-year growth rate has been 19.3 per cent a year." The Review goes on to comment how although external factors such as the fallout from the US or affordability in Australia could be an issue, Townsville is still looking very strong.

Increasing interest and planned capital spending on Hamilton Island is boosting interest in the entire region. Median unit prices on the island have climbed 14.6% or $120,000 from last year. "According to RP Data's national research director, Tim Lawless, the North Queensland housing market has benefited from the continued boom in resources sector with ongoing demand from workers translating to strong demand for housing. "In addition, the high wages being achieved within the mining industry has seen a lot of this money flowing into the real estate market, Lawless says." (AFR).

The Review goes on to say "It can also be seen that price growth has started to slow in Mackay also. Growth in house prices has been just 5 per cent over the year ending October, down from 22 per cent the year prior. The median house price at Mackay is now $385,000. Some of the strongest growth potential is now on the outskirts of Mackay where price growth has not been as high.

Coastal areas such as Sarina to the south of Mackay and Shoal Point at the northern most end of Mackay's northern beaches offer some of the strongest potential growth opportunities in the broader Mackay market.

But Lawless notes that just north of Mackay, the Whitsundays have continued to show consistent increases in market prices. The median house price in the Whitsundays increased by 15.6 per cent over the year ending October, bringing the median house price up to $445,000. Unit prices increased by 7.1 per cent over hte year to reach a median of $330,000.

The Whitsunday market should continue to improve with new developments such as the Port of Airlie coming on line. Population growth into the area has been very high, primarily with the mature segment of the market aged 45 to 64." Australian Financial Review Jan 25-28 2007.