Palm Island
Statistical Area - sa2

Palm Island is positioned among the lower quartile of areas assessed nationally for population growth based on AreaSearch's assessment of recent, and medium term trends

Palm Island's population was approximately 2,335 as of August 2025. This figure represents an increase of 237 people, or 11.3%, since the 2021 Census which reported a population of 2,098. The change is inferred from the estimated resident population of 2,287 in June 2024 and an additional 6 validated new addresses since the Census date. This results in a population density ratio of 32 persons per square kilometer. Palm Island's growth rate of 11.3% since the 2021 census exceeded that of its SA3 area (3.7%) and SA4 region, positioning it as a growth leader. Natural growth was the primary driver of this population increase.

AreaSearch uses ABS/Geoscience Australia projections for each SA2 area, released in 2024 with a base year of 2022. For areas not covered by this data and years post-2032, Queensland State Government's SA2 area projections are adopted, released in 2023 based on 2021 data. However, these state projections do not provide age category splits, so AreaSearch applies proportional growth weightings aligned with the ABS Greater Capital Region projections for each age cohort, released in 2023 and based on 2022 data. Considering projected demographic shifts, an above median population growth is projected for this area, with an expected increase of 404 persons to 2041, reflecting a total increase of 15.2% over the 17 years.

AreaSearch analysis of residential development drivers sees Palm Island recording a relatively average level of approval activity when compared to local markets analysed countrywide

Palm Island has recorded approximately 9 residential properties granted approval each year. Development approval data is produced by the ABS on a financial year basis. Over the past 5 financial years, from FY20 to FY25, around 47 homes have been approved.

No approvals have been recorded so far in FY26. On average, about 0.2 new residents arrive per new home each year over these 5 financial years, indicating that supply is meeting or exceeding demand and supporting potential population growth while providing greater buyer choice. The average expected construction cost value of new dwellings during this period was $351,000, which is under regional levels, suggesting more accessible housing choices for buyers. Compared to the rest of Queensland, Palm Island has recorded 181% more building activity per person.

Recent development on the island has been entirely comprised of standalone homes, preserving its low density nature and attracting space-seeking buyers. The location has approximately 206 people per dwelling approval, indicating an expanding market. Looking ahead, Palm Island is expected to grow by 356 residents through to 2041. Based on current development patterns, new housing supply should readily meet demand, offering good conditions for buyers and potentially facilitating population growth beyond current projections.

Palm Island has emerging levels of nearby infrastructure activity, ranking in the 32ndth percentile nationally

AreaSearch has identified zero projects that could impact the area's performance. Key projects include the Bruce Highway (Townsville-Ingham) upgrade program, Gawara Baya Wind Farm, North and Far North Queensland Renewable Energy Zones (REZs), and maintenance works for the Queensland National Land Transport Network.

Professional plan users can use the search below to filter and access additional projects.

Employment conditions in Palm Island face significant challenges, ranking among the bottom 10% of areas assessed nationally

Palm Island's workforce is balanced across white and blue-collar jobs, with essential services well represented. The unemployment rate was 77.5% as of June 2025.

This rate is significantly higher than Rest of Qld's rate of 3.9%, indicating room for improvement. Workforce participation on Palm Island lags behind the rest of Queensland at 26.7% compared to 59.1%. Employment among residents is concentrated in health care & social assistance, education & training, and public administration & safety. Notably, employment in health care & social assistance is at 2.2 times the regional average.

However, construction is under-represented on Palm Island with only 2.5% of its workforce compared to 10.1% in Rest of Qld. Over the year to June 2025, labour force levels decreased by 1.4%, and employment declined by 29.1%, causing unemployment to rise by 8.8 percentage points. In contrast, Rest of Qld experienced employment growth of 1.8% and labour force growth of 2.0%. State-level data to Sep-25 shows Queensland's employment contracted by 0.23% (losing 8,070 jobs), with the state unemployment rate at 4.2%, compared to the national unemployment rate of 4.5% and national employment growth of 0.26%. Jobs and Skills Australia projects national employment to expand by 6.6% over five years and 13.7% over ten years, but growth rates differ significantly between industry sectors. Applying these projections to Palm Island's employment mix suggests local growth of approximately 7.8% over five years and 16.2% over ten years.

Income levels sit below national averages according to AreaSearch assessment

AreaSearch's latest postcode level ATO data released for financial year 2022 shows Palm Island's median income among taxpayers was $52,111 and the average was $63,302. This is slightly below the national average. In comparison, Rest of Qld had a median income of $50,780 and an average of $64,844. Based on Wage Price Index growth of 11.71% since financial year 2022, current estimates for Palm Island's median income would be approximately $58,213 and the average would be around $70,715 as of March 2025. According to the 2021 Census figures, incomes in Palm Island fall between the 1st and 3rd percentiles nationally for households, families, and individuals. In terms of income distribution, 26.8% of Palm Island residents earn between $800 and $1,499 (625 individuals), unlike surrounding regions where 31.7% fall within the $1,500 - $2,999 range. Despite modest housing costs that allow for 87.4% income retention, Palm Island's total disposable income ranks at just the 6th percentile nationally.

Palm Island is characterized by a predominantly suburban housing profile, with a higher proportion of rental properties than the broader region

Palm Island's dwelling structure, as per the latest Census, consisted of 87.7% houses and 12.3% other dwellings (semi-detached, apartments, 'other' dwellings). In comparison, Non-Metro Qld had 89.5% houses and 10.5% other dwellings. Home ownership in Palm Island was at 1.5%, with mortgaged dwellings at 0.0% and rented ones at 98.5%. The median monthly mortgage repayment was $2,167, higher than Non-Metro Qld's average of $1,863. Weekly rent in Palm Island was $125, lower than Non-Metro Qld's $202 and the national average of $375.

Palm Island has a typical household mix, with a higher-than-average median household size

Family households constitute 76.4% of all households, including 27.5% couples with children, 11.1% couples without children, and 30.0% single parent families. Non-family households comprise the remaining 23.6%, with lone person households at 21.3% and group households at 3.6%. The median household size is 3.7 people, larger than the Rest of Qld average of 2.3.

Palm Island faces educational challenges, with performance metrics placing it in the bottom quartile of areas assessed nationally

The area faces educational challenges, with university qualification rates at 6.8%, significantly lower than the Australian average of 30.4%. This disparity presents both a challenge and an opportunity for targeted educational initiatives. Bachelor degrees are the most common, at 4.4%, followed by postgraduate qualifications at 1.4% and graduate diplomas at 1.0%. Vocational pathways account for 21.7% of qualifications among those aged 15+, with advanced diplomas at 3.8% and certificates at 17.9%.

Educational participation is high, with 30.1% of residents currently enrolled in formal education. This includes 20.8% in primary education, 6.3% in secondary education, and 0.6% pursuing tertiary education. The area has educational provision including Bwgcolman Community School and St Michael's Catholic School, collectively serving 459 students. Palm Island demonstrates varied educational conditions across its schools, which include one primary school and one K-12 school.

No public transport data available for this catchment area.

Palm Island's residents boast exceedingly positive health performance metrics with common health conditions somewhat prevalent across both younger and older age cohorts

Palm Island's health outcomes show notable results with common conditions prevalent across both younger and older age groups.

Private health cover stands at approximately 51% (~1,195 people), slightly lower than the average SA2 area. Diabetes and heart disease are the most common conditions, affecting 7.2% and 4.3% of residents respectively. 83.7% report no medical ailments, compared to 66.2% in Rest of Qld. The area has 7.4% (172 people) aged 65 and over, lower than the 24.3% in Rest of Qld. Health outcomes among seniors require more attention than the broader population.

In terms of cultural diversity, Palm Island records figures broadly comparable to the national average, as found in AreaSearch's assessment of a number of language and cultural background related metrics

Palm Island's cultural diversity aligns with its wider region's average. Its population consists of 94.2% citizens, 98.3% born in Australia, and 56.6% speaking English only at home. Christianity is the prevalent religion on Palm Island, accounting for 82.2%, compared to 70.7% in Rest of Qld.

The top three ancestry groups are Australian Aboriginal (74.0%), Other (16.4%), and Australian (4.3%). These percentages differ significantly from the regional averages: Australian Aboriginal (8.1%), Other (4.6%), and Australian (27.4%).

Palm Island hosts a very young demographic, ranking in the bottom 10% of areas nationwide

Palm Island's median age at 26 years is notably younger than Queensland's average of 41 and considerably below Australia's median of 38. Compared to the Rest of Qld, Palm Island has a higher proportion of residents aged 5-14 (19.7%), but fewer residents aged 65-74 (5.3%). This concentration of those aged 5-14 is significantly above the national average of 12.2%. Post-2021 Census data indicates that the 35 to 44 age group has increased from 10.8% to 12.3%, while the 75 to 84 cohort has risen from 0.9% to 2.0%. Conversely, the 5 to 14 age group has decreased from 21.2% to 19.7%, and the 45 to 54 group has fallen from 11.6% to 10.3%. By 2041, demographic modeling predicts significant changes in Palm Island's age profile. The 25 to 34 age cohort is projected to grow steadily, increasing by 108 people (29%) from 375 to 484. Conversely, population declines are projected for the 15 to 24 and 5 to 14 cohorts.