Palm Island
Almost nobody owns their home on Palm Island: 98.3% of dwellings are rented, the highest renter concentration of any suburb in Queensland and among the very highest nationally. With a population of 2,138 and a median age of just 27 years, which is 13 years below the national figure, this is one of Australia's youngest communities. Household income sits in the 11.9th percentile nationally, and all four SEIFA indexes rank the suburb in decile 1, the lowest advantage tier in the country. The local economy runs almost entirely on public services, with Healthcare and Education together accounting for nearly 60% of employment.
Population
2,138
Median Age
27.0
Household IncomeiMedian weekly household income (ABS Census)
$973/wk
DAs (12 months)iDevelopment Applications lodged in the past year
0
Median House
$341K
Estimated from rent (2025)
The estimated median house price of $341,000 places Palm Island well below the Queensland state median, reflecting the island's remoteness and the near-absence of a conventional owner-occupier market. At 98.3% renting, with only 1.7% of households owning outright and mortgage data effectively null, buyers are extremely rare. Separate houses dominate at 87.9% of dwellings, with 42.3% having 3 bedrooms and a further 28.3% having 4 or more bedrooms, consistent with the above-average household size of 3.7 compared to the national 2.5. The mortgage-to-income ratio is an extreme 51.4%, well above the 30% stress threshold, though this figure is largely theoretical given the minuscule purchase activity.
For Buyers
The estimated median house price of $341,000 places Palm Island well below the Queensland state median, reflecting the island's remoteness and the near-absence of a conventional owner-occupier market. At 98.3% renting, with only 1.7% of households owning outright and mortgage data effectively null, buyers are extremely rare. Separate houses dominate at 87.9% of dwellings, with 42.3% having 3 bedrooms and a further 28.3% having 4 or more bedrooms, consistent with the above-average household size of 3.7 compared to the national 2.5. The mortgage-to-income ratio is an extreme 51.4%, well above the 30% stress threshold, though this figure is largely theoretical given the minuscule purchase activity.
For Investors
A 98.3% renter share gives investors a captive tenant pool, but weekly rent of $125 produces an extremely low gross yield relative to most Queensland markets, and the vacancy rate of 4.8% indicates some slack in supply. Net internal migration averages minus 4 residents per year, and overseas migration contribution is zero, so population growth relies entirely on natural increase. The rent-to-income ratio of 12.8% is well below the 30% stress threshold, which suggests tenants can sustain current rents, though the income base is in the 11.9th percentile nationally. Rent growth of 13.6% over the measured period is a positive signal, but development activity is zero applications in the past 12 months, limiting any near-term supply uplift.
Schools in Palm Island iICSEA: school advantage index. 1000 = national avg, higher = more advantaged
Bwgcolman Community School
Prep-12 · 315 students
St Michael's Catholic School
Prep-6 · 127 students
Demographics
The median age of 27 sits 13 years below the national average, making Palm Island one of Australia's youngest communities by that measure. The overseas-born share is just 2.2%, which is 19.4 percentage points below the national figure, reflecting the largely Indigenous Australian character of the population. Australian Indigenous Languages are spoken by 406 residents, the single most significant non-English language. Average household size of 3.7 is 1.2 above the national figure, and couples with children account for 671 of 1,714 total families, or 39.1%. University qualifications reach only 13.4%, which is 16.7 percentage points below national, a gap that traces directly to the island's decile 1 IEO score for education and occupational status.
Age Distribution
Bedrooms
Dwelling Structure
87.9%
Houses
0.6%
Townhouse
8.2%
Apartment
Tenure
Palm Island's housing market is almost entirely rental, with 98.3% of dwellings rented compared to the national norm, and outright ownership at just 1.7%. The estimated median house price is $341,000, derived from weekly rent of $125 and is significantly below Queensland state medians. Separate houses make up 87.9% of the stock, with apartments at 8.2% and semi-detached at just 0.6%. Bedroom mix skews large: 3-bedroom homes account for 42.3% and 4-plus bedrooms for 28.3%, driven by the average household size of 3.7 persons. The mortgage-to-income ratio is 51.4%, indicating severe affordability stress if purchase activity were to increase, though in practice this ratio reflects the near-total absence of mortgage holders rather than widespread hardship among buyers.
Mortgage / mo
$2,167
Rent / wk
$125
HH Size
3.7
Personal Income / wk
$384
Vacancy Ratei% of dwellings unoccupied on Census night (ABS 2021)
4.8%
Unoccupied
25
Rent / IncomeiMedian rent as % of household income. Over 30% = housing stress
12.8%
Mortgage / IncomeiMedian mortgage as % of household income. Over 30% = housing stress
51.4% stressed
Community Profile
Languages Spoken at Home
Ancestry
Household Composition
9.6%
Couples, no children
1,714
Total families
Economy & Employment
Palm Island's economy is built around government-funded public services. Healthcare employs 35.2% of workers (70 people), Education 23.6% (47), and Public Administration 16.6% (33), together accounting for 75% of all local employment. By occupation, Community and Personal Service roles lead at 138 workers, followed by Professionals at 68 and Clerical/Admin at 37. The unemployment rate is 10.7%, well above the national average, and the participation rate is just 24.1%, with 960 residents not in the labour force at all. Personal weekly income averages $384, placing household income in the 11.9th percentile nationally. All four SEIFA deciles register 1, the lowest possible tier, meaning Palm Island ranks in the bottom 10% nationally across disadvantage, economic resources, education and opportunity.
Unemployment
78.4%
Labour Force
412
Unemployed
323
Quarterly Trend
Source: SALM Dec-25
Socio-Economic Indexes (SEIFA)iABS index ranking suburbs from 1 (most disadvantaged) to 10 (most advantaged)
Full-time
61.3%
Part-time
28.0%
Participation
24.1%
Employed
318
Occupations
Top Industries
University
13.4%
Postgraduate
3.0%
Born Overseas
2.2%
Dwellings
486
Transport to Work
Transport patterns on Palm Island are shaped by the island's geography: 41.9% of residents walk or cycle, far above the national norm, while only 39.3% drive, and public transport use is 5.2%. The island scores decile 1 on IRSAD nationally, the lowest relative advantage tier, indicating concentrated disadvantage compared to most Australian communities. Crime statistics are not available for Palm Island in this dataset. Community need is measured through 70 residents (3.5%) requiring daily assistance. Volunteering sits at 5.9%, below the national average. No schools are recorded in the dataset, though the community of 2,138 people with a median age of 27 represents a predominantly young, family-oriented population that would rely on any available local educational services.
Drive
39.3%
Public Transport
5.2%
Walk / Cycle
41.9%
Work from Home
N/A
Population Forecast
-0.34%/yr
(-8 people/yr)
EstablishedPalm Island's population stood at 2,138 at the 2021 Census but has since climbed to an estimated 2,335 by 2025, recovering from a COVID-era dip of 4.1% and surpassing the pre-COVID level of 2,274 by about 2.7%. The primary driver of growth is natural increase rather than migration, with net internal migration averaging minus 4 per year and zero net overseas migration. Medium forecasts project a gradual decline back toward 2,220 by 2031 as the trend rate of minus 0.34% annually reasserts itself. The 10-year population change is minus 10.3%, placing Palm Island firmly in a slow-to-declining trajectory despite the recent post-COVID rebound. Affordability, measured as rent-to-income, improved from 37.9% in 2011 to 32.9% in 2021, a 5 percentage point gain, though it remains elevated.
Historical + Forecast
Hamilton-Perry + Holt smoothing on ERP 2001-2025
Age Cohort Forecast
Primary Driver
Natural Increase
Net Overseas / yr
0
Net Internal / yr
-4
Gentrification Signal
Not gentrifying
COVID recovered (-4% dip → full recovery)
National Ranking iPercentile rank among ~15,000 AU suburbs. 90% = higher than 90% of suburbs
How Palm Island compares to ~15,000 Australian suburbs
Frequently Asked Questions
Is Palm Island a good suburb to live in?
Palm Island is a remote Indigenous community with population of 2,138 and a median age of 27, which is 13 years below the national figure. All four SEIFA indexes rank it in decile 1 nationally, reflecting concentrated disadvantage. It suits residents connected to local community and government services, but offers very limited private market housing and minimal commercial infrastructure.
What is the median house price in Palm Island?
The estimated median house price is $341,000, derived from the weekly rent of $125 using a capitalisation approach. With 98.3% of dwellings rented and outright ownership at just 1.7%, conventional purchase transactions are extremely rare. The mortgage-to-income ratio of 51.4% would indicate severe stress if purchase activity were to increase.
What schools are in Palm Island?
No schools are recorded inside Palm Island in this dataset. The local population of 2,138 includes many young residents, with a median age of 27 and an average household size of 3.7 persons, suggesting families rely on any available community or government-provided education services on the island.
Is Palm Island safe?
Detailed crime statistics are not available for Palm Island in this dataset. As a broad indicator, the suburb scores decile 1 on the IRSD index of relative disadvantage nationally, the lowest tier. About 70 residents (3.5%) require daily assistance, and the community's 10.7% unemployment rate is above the national average, reflecting structural economic challenges.
Is Palm Island good for property investment?
Weekly rent of $125 against an estimated median of $341,000 implies a low gross yield, and net internal migration averages minus 4 residents per year with zero overseas migration. Rent grew 13.6% over the measured period, which is a positive signal, but zero development applications in the past 12 months and a 4.8% vacancy rate limit the conventional investment case.
How is Palm Island's population changing?
Population recovered from a COVID dip of 4.1% and reached an estimated 2,335 by 2025, above the pre-COVID level of 2,274. However, the 10-year trend shows a minus 10.3% change, and medium forecasts project a gradual decline to around 2,220 by 2031, at an annual rate of minus 0.34%. Natural increase is the sole positive driver, as internal and overseas migration are both near zero.
How to read these comparisons
Phrases like "above the national average" reference the unweighted median across Australian suburbs with more than 1,000 residents, not population-weighted national figures. Suburb-level medians are more useful for ranking suburbs against each other; ABS census headlines are population-weighted (so dominated by Sydney and Melbourne) and can read very differently.
Current baseline (refreshed 2026-05-10): median age 40, university-educated 30.1%, born overseas 21.6%, average household size 2.5 people.
Data sources: ABS 2021 Census (demographics, income, tenure), state Valuer-General (house prices), Department of Jobs SALM (unemployment), ACARA (school ICSEA), state Crime Statistics agencies (offences), council DA portals (development applications). Population forecasts use a Hamilton-Perry cohort model calibrated to ABS ERP.
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