​RBA Cash Rate: 4.10% | Extra on a $600K Loan: +$95/mo | Townsville, QLD National Ranking: Top 5 | National Dwelling Value Growth: +9.9%

The RBA has moved again. In a narrow five-to-four vote, the Reserve Bank lifted the official cash rate by another 25 basis points at its March meeting, taking us to 4.10%. It is the second back-to-back rise in as many months, and when you layer in conflict in the Middle East pushing fuel prices higher and inflation stubbornly sitting above target, it is hard to see the pressure easing quickly.

If you hold a $600,000 variable rate mortgage, that move translates to roughly an extra $95 a month landing on your statement. That stings. I am not going to pretend it does not.

​“Rate rises are not the market killer some people fear. The numbers tell a more interesting story — and for the right investors in the right locations, this is exactly the kind of environment where ground is won.”


The Market Has Not Cracked
Here is what most people miss when they see a headline about rate hikes: national dwelling values are still up 9.9% annually. Let that sit for a moment. We have had back-to-back rate rises, cost-of-living pressure, and global uncertainty — and values are still climbing nationwide.

The reason is straightforward. Supply simply cannot keep pace with demand. Australia is sitting on a 32,000 dwelling shortfall for this financial year alone. The construction pipeline is still battling through rising material costs and a stretched labour market. Housing economists expect that gap to persist well into 2026 and beyond, which creates a floor under values even as borrowing gets more expensive.

Where It Hurts and Where It Does Not
Not all markets feel this equally. Variable rate mortgages on investment properties are now sitting comfortably above 6% for most borrowers. If you are carrying an asset in a low-yield inner-city market — think inner Sydney or Melbourne — you are fighting a genuinely hard equation right now. Your mortgage is costing more, and your yield may not be there to support it.

What Smart Investors Are Asking Right Now
​- Can my rental income genuinely cover the cost of capital at today's rates?
​- Am I in a market with enough underlying demand to justify holding through a prolonged high-rate period?
- What is my yield, really — and when did I last stress-test it against a rate above 6%?
- Is there a higher-yielding regional market that gives me better cash flow without sacrificing growth?

In a high-rate environment, cash flow becomes the deciding factor. Yield-heavy markets that many investors once dismissed as secondary now look very different on a spreadsheet. That is exactly the conversation I am having with investors in Townsville every week right now.

Why Regional Queensland Is Holding Its Ground
Perth has grabbed the headlines with 22% annual growth, and rightfully so. But regional Queensland markets, including Townsville, are doing something quieter and arguably more sustainable: delivering strong yields alongside solid capital growth, right through the rate cycle.

Why Townsville Makes Sense in a High-Rate Market
​Strong rental demand, infrastructure-backed growth, and yields that can still cover your cost of capital at today's rates.

Top 5 National Market Ranking for Investor Performance | High Gross Rental Yields Relative to Eastern Capitals | Low Vacancy Rates Driving Consistent Tenancy Demand

Townsville is sitting inside the top five markets nationally right now. The combination of defence infrastructure investment, population growth, a tight rental vacancy rate, and comparatively affordable entry prices makes for a compelling case when you run the numbers honestly. This is not a hype cycle — it is fundamentals doing what fundamentals do.

The Smart Move Right Now
Rate rises are not going away overnight. CommBank economists have flagged the very real possibility of another move as early as May, depending on how inflation tracks and how the global energy situation evolves. That means every property you hold deserves a clear-eyed review.

The question is not whether rates are uncomfortable — they clearly are. The question is whether your portfolio is positioned to ride through this cycle and come out the other side in a stronger position. That means knowing your yield, knowing your vacancy exposure, and being honest about whether every asset you hold can justify its cost of capital today, not just when rates were at their floor.

For investors sitting in weaker-yield markets, this might be the moment to have a very candid conversation about what a high-performing regional Queensland property could do for your overall position.

I am based in Townsville, and this is the conversation I am having with property owners and investors every single week. If you are feeling the pinch of rising rates, or you are curious about where the genuine opportunities sit in this market, I would love to hear from you.

Are you feeling the pressure right now, or are you finding opportunity in it? Drop a comment or reach out directly — I read everything.

Let’s Talk About Your Portfolio
Whether you are an existing client or an investor exploring Townsville for the first time, we are here to help you make sense of the numbers.

coralseaproperty.com.au | 621 Flinders St West, Townsville QLD 4810

Source: CommBank Newsroom, March 2026. Key data sourced from CommBank economists, Cotality (formerly CoreLogic) and RBA. This article is general in nature and does not constitute financial or investment advice. Please consult a qualified professional before making investment decisions.