Palm Island
At 2,138 residents, Palm Island has a median age of 27, which is 13.0 years below the national comparison, and an average household size of 3.7, or 1.2 people above the national figure. Housing is unusually rental-dependent: 94.6% of occupied dwellings are rented, while only 1.7% are owned outright. Compared with mainland North Queensland centres such as Townsville, Palm Island presents a distinct island profile, with 87.9% separate houses and household income at the 11.9th percentile. Its density of 24.1 people per square kilometre supports a low-density community shaped by local services and limited housing turnover.
Local council: Palm Island (81% of the suburb; the rest sits in a neighbouring council)
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
Homebuyers face an unusual market because a median house price is not available and 94.6% of occupied dwellings are rented. The stock is mainly separate houses at 87.9%, with 42.3% having 3 bedrooms and 28.3% having 4 or more, giving larger households more relevant options than apartment-focused buyers. Monthly mortgage repayments are listed at $2,167, versus weekly rent of $125, while outright ownership is only 1.7%. That gap makes local tenure and finance advice more important than relying on a standard suburb price comparison. Compared with the rental-heavy profile, the 8.2% apartment share is small.
For Buyers
Homebuyers face an unusual market because a median house price is not available and 94.6% of occupied dwellings are rented. The stock is mainly separate houses at 87.9%, with 42.3% having 3 bedrooms and 28.3% having 4 or more, giving larger households more relevant options than apartment-focused buyers. Monthly mortgage repayments are listed at $2,167, versus weekly rent of $125, while outright ownership is only 1.7%. That gap makes local tenure and finance advice more important than relying on a standard suburb price comparison. Compared with the rental-heavy profile, the 8.2% apartment share is small.
For Investors
Palm Island is a specialist, low-rent investment market rather than a conventional growth play. Weekly rent is $125, vacancy is 4.8%, and 94.6% of households rent, creating a large tenant base but also a low absolute rent ceiling. Development activity was 0 over the last 12 months, so limited new supply may support occupancy, although it can also restrict resale depth. The forecast trend is -0.34% annually and the gentrification score is 10, with a Not gentrifying stage. Compared with a higher-growth suburb, returns here depend more on stable local demand and property management than capital appreciation.
Schools in Palm Island
Open-register school locations for education access. This is not a school-quality ranking.
Bwgcolman Community School
St Michael's Catholic School (Palm Island)
Demographics
Palm Island's median age of 27 is 13.0 years below the national comparison, while university attainment at 13.4% is 16.7 percentage points below the national level. The 3.7-person average household is 1.2 people above the national comparison, consistent with 41.6% of families being one-parent families and 34.9% being couples with children. Population stability is notable: 90.2% stayed at the same address, with turnover at 9.8%, which can reinforce local networks. Christianity is recorded for 1,606 people and no religion for 350. Overseas-born residents account for 2.2%, or 19.4 points below the national comparison. Compared with mainland Townsville, this is a more locally rooted profile shaped by family households and limited migration.
Age Distribution
Bedrooms
Dwelling Structure
87.9%
Houses
0.6%
Townhouse
8.2%
Apartment
Tenure
Separate houses dominate Palm Island at 87.9%, compared with 8.2% apartments and 0.6% semi-detached dwellings. The bedroom mix is weighted to family accommodation: 42.3% of homes have 3 bedrooms and 28.3% have 4 or more, while 24.9% have 2 bedrooms. Tenure is the sharper distinction: 94.6% rent, only 1.7% own outright, and 3.8% sit in other arrangements. Rent takes 12.8% of household income, far below the listed mortgage burden of 51.4%, because weekly rent is $125 while monthly mortgage repayments are $2,167. Compared with mainland housing markets, the absence of a sale-price benchmark makes dwelling condition and tenure terms especially important.
Mortgage / mo
$2,167
Rent / wkiABS Census 2021 median across all dwelling types. Current market rents are typically higher.
$125
Census 2021
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
34.9%
Couples with children
16.9%
Couples, no children
41.6%
Single parent
450
Total families
Economy & Employment
Healthcare is Palm Island's largest industry at 35.2%, with 70 workers, followed by Education at 23.6% and 47 workers, Public Administration at 16.6% and 33, Hospitality at 8.5% and 17, and Retail at 4.0% and 8. This service concentration fits the occupation mix, led by Community/Personal roles at 138 and Professionals at 68. Labour-market participation is 27.0%, unemployment is 9.5%, and full-time work accounts for 54.2% of employed people, while 960 are not in the labour force. The four SEIFA deciles are all 1, signalling disadvantage well below national benchmarks. The 13.4% university rate, 16.7 points below national, helps explain the gap alongside reliance on public and community services.
Unemployment
9.5%
Labour Force
398
Unemployed
38
Source: ABS Census 2021
Socio-Economic Indexes (SEIFA)iABS index ranking suburbs from 1 (most disadvantaged) to 10 (most advantaged)
Full-time
54.2%
Part-time
34.2%
Participation
27.0%
Employed
360
Full-time and part-time are shares of the employed. Source: ABS Census 2021
Occupations
Top Industries
University
13.4%
Postgraduate
3.0%
Born Overseas
2.2%
Dwellings
486
Transport to Work
Daily movement is relatively active: 41.5% walk or cycle to usual destinations, compared with 38.9% who drive a car and 5.1% using public transport. With an area of 88.85 square kilometres and density of 24.1 people per square kilometre, access is shaped by island geography and service locations rather than metropolitan-style networks. Two nearby schools cover Catholic and Government sectors, including a non-state school and a community school, giving families 2 local education settings to check against enrolment zones. The IRSAD decile is 1, so affordability and access pressures are materially higher than in advantaged areas. Check current local safety information before choosing a home because no crime rate is provided.
Drive
38.9%
Public Transport
5.1%
Walk / Cycle
41.5%
Work from Home
1.0%
Growth Outlook
Palm Island's wider-area forecast points to contraction rather than expansion: the annual trend is -0.34%, and population change over 10 years is -10.3%. Natural increase is the primary driver, but the overall trajectory is Mixed, so demographic renewal is not translating into broad growth. Rent growth is 13.6%, while affordability improved from 37.9% in 2011 to 32.9% in 2021, helping explain why the area can remain accessible even as housing choice is limited. The gentrification score is 10 and the stage is Not gentrifying, compared with a gentrifying market where price-led displacement would be more evident. COVID's -4.1% dip was followed by a 4.7% recovery, indicating recovery without a strong expansion cycle.
Population trend: Palm Island council area
About 81% of Palm Island sits in Palm Island; the rest is in a neighbouring council. These are the council area's residents, not Palm Island's.
Residents 2025
2,335
Growth, 5 yr average
+1.1%/yr
2020 to 2025
Growth, last year
+2.3%
2024 to 2025
ABS Estimated Resident Population by LGA, 30 June each year; council area, not this suburb
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 can suit residents seeking a young, locally connected island community, with a median age of 27 and 90.2% staying at the same address. Housing is 94.6% rented and transport is more walking and cycling based at 41.5% than public transport at 5.1%, so check tenure, services and travel needs carefully.
What is the median house price in Palm Island?
A median house price is not available for Palm Island. The clearest housing context is a 94.6% renting rate, an 87.9% separate-house share and weekly rent of $125. Buyers should obtain current local sale evidence and inspect dwelling condition because a standard suburb price comparison is not available.
What schools are in Palm Island?
Palm Island has 2 schools: St Michael's Catholic School, a Catholic non-state school, and Bwgcolman Community School, a Government community school. Families should confirm enrolment zones, transport arrangements and current places for the exact address, particularly where island access affects daily routines.
Is Palm Island safe?
Check current local crime and safety information before deciding, as no crime rate is provided here. Palm Island has 2,138 residents across 88.85 square kilometres, and daily movement includes 41.5% walking or cycling, but these figures do not replace an address-level safety check.
Is Palm Island good for property investment?
It can suit an investor seeking a strongly rental-based market, but it is not a straightforward capital-growth proposition. Rents are $125 a week, vacancy is 4.8%, development activity is 0 over 12 months, and the forecast trend is -0.34% annually. The gentrification score is 10 and the stage is Not gentrifying, so local demand and management quality matter more than a growth story.
How is Palm Island's population changing?
Palm Island's population is moving downward rather than expanding: the forecast annual trend is -0.34% and 10-year population change is -10.3%. Natural increase is the primary driver, while the forecast trajectory is Mixed. The resident base is young at a median age of 27, but the senior share has increased by 2.5 percentage points, pointing to gradual demographic change rather than rapid expansion.
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 education open registers (school locations), state Crime Statistics agencies (offences), council DA portals (development applications).
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