Rural town Gracemere in top 10 list of Queensland suburbs

A satellite town in Central Queensland is attracting investors, but locals fear the investment boom is eroding the heart of the community. Gracemere, a close-knit rural town of about 13,000 people, is just 10 minutes from Rockhampton. The area blends agriculture and industry, with the Gracemere saleyards holding a prominent position in the town and rail freight company Aurizon operating in a nearby industrial estate.

It has the shopping centre you'd expect in a rural town, but the heart of the community is the main street, which houses a medical centre, bakery and pharmacy. "It's a great place for families and raising kids," says Aylah Shaw, who owns a local hair salon. But she also notes that "a lot of locals are leaving because investors are driving up house prices."

According to InfoTrack's latest property report, the quiet community has cracked the top 10 suburbs in Queensland for house sales. Realestate.com.au data shows the median house price grew by 26.6 per cent from February 2024 to January 2025, while rental prices increased by more than 5 per cent over the same period, averaging $495 a week. "We're noticing new faces coming in, but a lot of the locals are leaving," Ms. Shaw said.

"They can't afford to live here because investors are coming in and buying up houses and renting them out for exorbitant prices, so our locals can't afford it, especially during a cost-of-living crisis," Ms. Shaw explained. While there are new faces moving to town, Ms. Shaw says the same can't be said for business. "You're not seeing new businesses open because these investors are coming in, buying up the commercial properties, and hiking the rent to unbelievable amounts," she said.

Karen Paroz owns a takeaway shop in Gracemere. She says after four years of operating in the town, they want to expand, but there's no room to grow. "I've outgrown my space, and there's nowhere to move in Gracemere to upsize," Ms. Paroz said. "I'd like to employ more than 10 staff, but I can't do that at the moment." One of the projects driving growth is the construction of the $1 billion Rockhampton Ring Road, which is creating 800 jobs and has bipartisan support to build a high school. The ring road will connect the Bruce Highway, bypassing Rockhampton traffic.

Jackson Hills from Queensland's peak body for housing and homelessness, Q Shelter, says investor interest in the emerging community can be seen as a double-edged sword. He says investors create more rental properties, but based on current figures, the average rent in Gracemere is $495 a week, which is out of reach for many. "That makes it harder for some of those low to middle income families in the area to purchase [property]," he said. "Affordable home ownership, even renting, in areas like Rockhampton and Gracemere is becoming beyond the reach of residents. It's a competitive market, and that's driving up prices because there's not enough supply."

Mr. Hills says Q Shelter advocates for a mix of low-income, subsidised and affordable housing. "That mix is important because it promotes the best communities, rather than a concentration of one type of housing," he said. Real estate agent John Neumann has lived through the booms and busts, but he's happy now. "It's going along swimmingly," he said. "We're seeing industries including agriculture and mining growing, so a lot of southern investors are looking at the rental returns here, thinking it's on par with other Queensland hotspots."

Mr. Neumann says in addition to recognising the area's job growth, investors are looking at the "long-term plan" for retirement. "They're looking at continued growth, and also, if you're living in cold Victoria, you might look at sunny Queensland as a potential place to retire." Rockhampton Regional Council says it has approved a number of commercial developments in the town in recent years. Mayor Tony Williams said: "It'll have a big impact and is a real opportunity to see new shops and services move into the area." "You only have to stand there and look at what's happened in the last two to five years and compare it to 10 or 15 years ago, and you can clearly see the increase in shops and commercial businesses. There's still commercial land available for development, and we're committed to working with proponents to see good, positive development in the area."

As Ms. Shaw sees her hair salon's bookings increase, she recognises more needs to be done at a local level to ensure everyone benefits from the growth. "We need the services in Gracemere to keep people here," she said. Ms. Shaw notes that the proposed high school construction, more parking on the main street, and more commercial spaces would transform the town. "Not many people can afford to live here, and it's sad," she said.