Herron Todd White Valuers – Month In Review

June 13, 2018

 

As published by Herron Todd White Valuers

The Toowoomba residential property market has continued to remain steady throughout the first half of 2018 following a general decline since the peak of activity at the end of 2013. Although sales activity has been steady across the board, the market has Month in Review June 2018 Residential 46 continued to be multi speed and property specific. There has been little consistency with variations in sale prices and buyer interest across the established suburbs. The prestige market, however, has been performing strongly, particularly in the eastern suburbs as has the upper end of the rural residential lifestyle market. The median sale price has displayed some growth over the past 3 years, currently sitting at approximately $390,000 up from $375,000 in June 2015. Another key indicator of the steady property market is the volume of property listed for sale. As of April 2018, there were approximately 1,740 houses and units listed for sale in postcode 4350. This is near a 6 year high and does not show well for price growth in the short term. The unit market has followed a similar trend to the housing market, with low sales volumes following the oversupply of unit product that became apparent throughout 2016. Land sales volumes steadily increased in the 3 years between 2012 and 2015; peaking at 1,063 sales in 2015. In 2016, 681 sales were recorded and 677 in 2017. In contrast, vacancy rates across Toowoomba are approximately 2.3% as at April 2018, which is considered tight and below the balanced market level of 3%. The Toowoomba Second Range Crossing project under construction appears to have assisted in maintaining low vacancy rates, with many workers residing in the region. It is anticipated that the low vacancy rate and substantial infrastructure projects in the pipeline may reignite interest in Toowoomba residential property from investors. The steady market conditions currently being experienced in the residential property market are expected to continue throughout the remainder of 2018.