Toowoomba’s Housing Boom: What You Need To Know
Regional housing markets got a lot of media attention over 2020. As COVID-19 struck, many capital city residents left the big smoke to move somewhere with a better quality of life.
At the same time, Queensland’s housing market began outperforming the NSW and Victorian markets for the first time in many years.
But does this mean we’re experiencing a housing boom here in Toowoomba?
We look behind the data to let you know what’s happening in our neighbourhood.
Australia’s regional housing boom
2020 was a big year for regional property markets across the country. Housing values in regional Australia rose an average of 7.9% in the 12 months to January 2021, while the combined capital cities markets only saw an increase of 1.7%.
Property values are driven by the laws of supply and demand and both sides of that equation worked in the favour of regional Australia last year.
As COVID-19 struck and more of us started working from home, people began leaving the major metropolitan centres in record numbers. In fact, the September 2020 quarter saw the biggest net migration out of our major cities on record, with more than 11,200 residents leaving for a change of pace in regional Australia.
Much of the focus has been on people escaping to high profile tourist towns such as Noosa or Byron Bay. However, the reality is that more people are leaving to take up residence in regional centres like Toowoomba – towns and cities that have the educational, health care and other facilities of a major centre, along with affordable housing prices, low population density and a wonderful lifestyle.
At the same time, expert analysis of the regional housing market reveals there has been a substantial decline in stock levels over the past two years. That essentially means there are now more people competing over fewer properties.
As a result, most regions across the country are experiencing a decline in days on market. This has a flow-on effect on prices, including less vendor discounting.
Strong Queensland property market
Here in Toowoomba, we’re experiencing the effects of not just one, but two housing booms. Not only is regional housing across Australia experiencing strong price growth, but Queensland is in the midst of a statewide property boom too.
According to data from realestate.com.au, online searches for Queensland properties are at record highs, with searches increasing 41% in January 02021 compared to the same time a year ago. Strong demand from locals as well as interstate buyers, coupled with record low listings and predictions of further market growth are driving up prices across the state. Buyers are keen to get in now before prices climb further.
And on the back of record low-interest rates, overseas travel remaining off the cards and more people embracing work from home arrangements, property market experts are forecasting further strong growth in 2021.
How quickly are property prices rising in Toowoomba?
According to realestate.com.au data, Toowoomba property prices are rising faster than most of regional Australia, as the house price table below shows.
|Area||Average house price 2019 (12 month data)||Average house price Feb 2021||Increase|
Our observations of the market here at RE/MAX Success Toowoomba certainly reflect the data. We’re witnessing strong performance from both the sales and rental sectors of the market on a daily basis.
Forecasts for the future
In late January 2021, the RBA released a document forecasting that permanent low-interest rates could increase housing prices by 30% over the next three years.
According to property experts, 75% of Australia’s regions should experience this growth and Toowoomba is amongst those likely to see this level of growth.
But it won’t just be low-interest rates working in Toowoomba’s favour. We also believe that Toowoomba’s lifestyle and convenience, and growing importance as a commercial centre, will also attract more residents and greater demand for quality housing.
It’s a good time to own property in Toowoomba. If you’re thinking of buying, selling or leasing property here, contact our expert team today.