Grandchester, the town that leads Queensland with a compounding growth rate of 7.7% over the past five years

The historic Queensland town of Grandchester, with barely a population of 500, has been identified as an investment hotspot with property prices set to double in 10 years, according to RP Data.

Located 80 kilometres west of Brisbane in the Lockyer Valley region, the town leads the Queensland list with a compounding growth rate of 7.7% over the past five years. 

The rural village boasts several heritage-listed sites such as the Grandchester Steam Timber Mill, one of the last known surviving (and still functioning) steam-powered sawmills in Australia and the Grandchester Railway Station, featuring the first narrow gauge mainline railway in the world. 

Originally known as Bigge’s Camp, the tiny township gained prominence after becoming the temporary terminus of Queensland’s first railway line from Ipswich in 1865. 

Grandchester was eventually renamed by Governor Bowen and now has the oldest railway station in Queensland as listed by the National Trust. 

Despite opportunities for good returns in property investment and country living, the town has experienced a significant drop in population since 2006, previously recorded at 735.

The 2011 ABS report recorded that 43.6% of homes are fully owned, 42.4% have mortgages and 9.1% of homes are rented. 

Currently available on the market are several properties including a freshly renovated three-bedroom, one-bathroom property situated on 1776 square metre block, with a new water tank with an asking price of $262,000.

A three-bedroom, one-bathroom property, which sits on a 30.35 hectare block complete with a shed, water tank and greywater system is listed for $420,000.

A two-bedroom, two-bathroom colonial style home, self-sufficient with with solar power and rainwater tanks, sits on an 8.5 hectare block with a large garden shed with an asking price of $339, 900.