The Story Behind Toowoomba’s Property Boom
You might have seen the headlines, or perhaps you’ve experienced it firsthand.
Either way, there’s no denying that Toowoomba is in the midst of a property boom. We take a look at what’s behind the growth of property prices in our area.
Current property market conditions in Toowoomba
Over the past twelve months, house prices in Toowoomba have risen by 3.7 per cent and units by 9.6 per cent. Contrast that with Greater Brisbane, where house prices increased just 2.8 per cent over the same period. The growth in Toowoomba’s median house price has been driven by price spikes in Middle Ridge and East Toowoomba, which have grown by 5.7 per cent and 12 per cent respectively. Units in East Toowoomba have seen record-breaking growth, with prices surging 79.1 per cent in the past twelve months.
We are seeing both owner-occupiers and investors are keen to get a slice of the action. And, with limited stock available, the market is struggling to keep up with buyer demand. The scarcity of properties for sale creates competition among buyers, which drives up prices. Properties are spending much less time on the market than they used to, as they are snapped up by eager buyers within weeks or days.
Regional markets are booming across Australia
The property boom we’re experiencing in Toowoomba is reflective of a wider trend happening across Queensland and regional Australia.
In 2020, house prices in regional Australia rose at a higher annual rate than in capital cities for the first time in more than 15 years, lifting by almost 7 per cent. The price rise was sparked by city dwellers across Australia, spurred on by COVID-19 and new remote working arrangements, moving out of the major cities. The pandemic saw many Australians reassessing their priorities and, attracted by lower, more manageable mortgages and more relaxed and fulfilling lifestyles, relocating to regional areas.
Here in Queensland, we saw the trend played out in the western corridor property market as it beat Brisbane’s property market for growth in many areas. We experienced it here in Toowoomba, and closer to Brisbane, Ipswich also saw house prices increase by 28.8 per cent.
Why is the Toowoomba property market booming?
Rock bottom interest rates on mortgages and low rates of interest on bank savings are contributing to the upswing in buyer activity here in Toowoomba. Property investors are choosing real estate over other investments to benefit from higher rental returns. We’ve heard of Australian investors living as far afield as Switzerland buying property here in Toowoomba, sight unseen, to recoup the 6.5 per cent rental return. But it’s not just investors driving our market. First home buyers are also snapping up more affordable housing here in Toowoomba, which partially accounts for the rise in unit prices.
What locals (and property buyers) love about Toowoomba
Buyers and investors alike are attracted to Toowoomba for the great lifestyle it offers, the quiet leafy streets and clean country air. A thriving café scene, charming architecture and access to quality amenities and services are also big drawcards. Our excellent local schools are a magnet for families, with the astronomical rise in unit prices in East Toowoomba partially attributed to the stellar reputation of East Toowoomba State School.
Toowoomba’s excellent transport connections also make it appealing to prospective buyers. With Brisbane as little as 90 minutes away thanks to highway upgrades and the new bypass, commuting to the state capital on occasion for work is within reach for Toowoomba residents. Toowoomba Wellcamp Airport, and its direct flights to Sydney, Melbourne, Darwin, Western Queensland and Townsville, is another draw. The Inland Rail is also sure to attract more economic activity to Toowoomba in the future too.
If you want to know more about buying or selling in Toowoomba contact our experienced team today.