2020 Property Market In Toowoomba
In a year of unprecedented challenges, the Toowoomba property market experienced rising real estate prices and low vacancy rates.
Now, as we turn the corner into 2021, the market seems to be going from strength to strength.
When it comes to residential property, regional Australia has been the real success story of 2020 and Toowoomba is right in the thick of it.
While capital cities saw rental vacancy rates rise and sales prices fall, here in regional Australia, we experienced the exact opposite. According to REA Insights Regional Australia Report 2020, the strong market conditions prevailing outside of our capital cities were largely the result of the pandemic, which triggered many more people to move to the regions than otherwise would have been the case.
With its great connections to Brisbane and beyond, and a laidback lifestyle, a lot of people singled out our area as the prime place to be and this caused greater demand for local property. In fact, 2020 has been the strongest regional property market in Queensland in six years, and Toowoomba is one of seven regional cities that was highlighted by property commentators as one to watch. Toowoomba had eight suburbs that showed rising sales activity, meaning the property market here looks set for sustained price growth into the future.
Key property market trends in 2020
The property market in Toowoomba over 2020 has been defined by:
- An increasingly tight rental market, with vacancy rates falling to just 0.6% by October. On the back of this, weekly rents rose to $354 for houses and $319 for units by December, according to SQM Research. Yields now range from 4.8% for houses to 5.9% for houses. This is all good news for investors but makes it a competitive market for renters.
- Fewer properties offered for sale. Many would-be sellers held off due to uncertainty over the economic impact of the pandemic. When combined with strong buyer demand, a series of government grants and schemes, and record low-interest rates, this forced sales prices upwards, according to SQM Research. Unit prices lifted 3.8% over the month to 8 December, 4.6% over the quarter and 2.2% over the past 12 months. This has been great news for sellers, a lot of whom have achieved excellent prices during 2020.
Spotlight on Toowoomba
There has been a lot of excellent price growth in the Toowoomba region this year, including:
Toowoomba City. For six months this year, units had a higher median sales price than houses in the City according to realestate.com.au data. The median unit price now sits at $320,000, up from $248,350 a year ago, with weekly rents at $250. Houses now sell for a median price of $330,000, up from $311,000 this time last year, and rent out at $320 per week. The vacancy rate is 1.44%.
North Toowoomba. Houses experienced a substantial price increase, with the median price rising from $319,000 to $400,000 over the year.
East Toowoomba. Another solid but interesting result, with houses rising a respectable $45,000 from $500,000 to $545,000 while unit prices shot up $192,500 – or 68.75% – from $280,000 to $472,500.
Middle Ridge: A success story for 2019 and again for 2020, Middle Ridge’s median house price rose from $575,000 to $631,500.
Newtown: Houses went from $300,000 to $310,000 while units rose from $220,000 to $257,500.
Rangeville, South Toowoomba, Mount Lofty, Westbrook and Centenary Heights also experienced median sales price rises.
The future looks bright
It’s been a strong end to 2020. We expect 2021 will continue in the same way but we’re also confident this is the beginning of a longer growth trend.
According to Colliers Industrial Regional Spotlight Report, Toowoomba’s economy, which is worth $12.2 billion, has grown by 21% over the last five years thanks mainly to major investments in local infrastructure. And with a further $13 billion in infrastructure works planned, this should lead to increasing demand for Toowoomba real estate.
The Toowoomba Housing Market Outlook report from Matusik Market Analysis argues that Toowoomba’s residential land market remains “undersupplied”. And, despite the economic impact of COVID-19 and the recent bushfires, the local market is in a recovery phase, with both sales volumes and prices rising – especially for vacant residential land.
The report’s figures show that Toowoomba is expected to grow by around 1,650 people per year and this should create a need for around 600 additional new homes each year too. As Toowoomba’s popularity continues to grow, property prices will rise and, unfortunately for many people, housing affordability could also become a much bigger issue here, just as it is in Australia’s major cities.
To combat this and keep up with rising demand, the report recommends fast-tracking new subdivisions. This should also stimulate the construction industry, which accounts for 23% of Toowoomba’s economy, according to 2019 figures.
Is it your time to rent, invest, buy or sell?
Contact one of our experienced local agents today and we’ll help you find an incredible Toowoomba home.