When it comes to real estate you would be lucky to find a decent property in a capital city for under $320,000.

But it could afford you a luxury waterfront two-bedroom apartment on Magnetic Island, just a 20-minute ferry ride from Townsville.

Since the Global Financial Crisis and the end of the mining boom, property prices on the island have tumbled.

This apartment is up for sale on Magnetic Island for $320,000, after selling for $560,000 back in 2007. ( ABC News: Josh Bavas )

Luxury apartments once valued above $1 million are now selling for a fraction of their original price.

Island real estate agent Alex Strens said while the original buyers had suffered, the downturn provided opportunities for others.

"I did have a Sydney buyer recently who bought an apartment here," she said.

"He could hardly buy a car park in Sydney for the same price.

"I haven't got a crystal ball but I would have to say that from all indications — especially on Magnetic Island — we've been at the bottom for about five years and we're just starting to see an improvement."

It is hoped the property market will pick up, with the region's unemployment rate showing signs of improvement. ( ABC News: Josh Bavas )

House prices down double digits

One apartment in Nelly Bay that sold off the plan for $560,000 in 2004 is currently on the market for $320,000.

But Ms Strens said there should be better marketing of the region to boost the tourism industry to improve the economy.

"Jobs are obviously extremely important to Townsville at the moment and that has a flow-on effect as well for everybody in Townsville and in the regions around it."

Ms Strens said while the original buyers have suffered, the downturn is providing opportunities. ( ABC News: Josh Bavas )

In the wake of high unemployment, the median house price in Townsville fell 4.4 per cent in the March quarter to $330,000 with the median unit price falling 6.9 per cent to $235,000, according to the latest figures by the Real Estate Institute of Queensland.

Over five years, that is a negative 8.2 per cent change for houses and 17.6 per cent drop for units.

But there are some signs of improvement with the vacancy rates dropping 1.2 per cent in the last quarter to 5 per cent.

Unemployment has dropped to 10.1 per cent down from 11.3 per cent in March and more jobs are expected to flow when construction on the $250 million Townsville stadium begins next month, a fortnight earlier than expected.

The cost of units in Townsville has reduced by 17.6 per cent over five years. ( ABC News: Josh Bavas )

Townsville electrician Peter Newey, who also heads the Ratepayers Association, has been looking for a job since his business closed in 2015.

He said political leaders would face a backlash, unless the north Queensland economy improved.

"Dick Smith said it, if you take away people's reason to work or availability to work, all you're going to end up with is a whole stack of frustrated people," he said.

"They'll turn around and bring out their pitch forks.

"That's exactly what's going to happen — you can see it coming."

Mr Westcott is confident property prices will pick up, but encourages more intervention from governments. ( Facebook )

Some businesses are still holding out for an economic resurgence.

Cafe owner Kymbo Westcott believes a turnaround is coming.

"I suppose confidence is the thing that's most needed," he said.

"You've got to look to the future and just stick it out — that's what business is about — seeing the ups and downs.

"It's good to see people, the Government, federal and state, looking to north Queensland and actually coming up here and saying they're going to do something and actually doing it."