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May 15, 2023

Toowoomba Remains Queensland’s Top-performing Region

As we move towards the middle of 2023, Toowoomba’s property market has once again been named Queensland’s top-performing region.

REA-owned PropTrack found our region’s median dwelling value rose 7.17% in the year to April 2023, at the same time as Brisbane’s median rose just 0.14%

We analyse the latest data to see why Toowoomba real estate continues to be a stand-out performer.

Limited properties for sale

Lower-than-usual stock levels have been a key feature of our market over the past few years, and the latest data shows that continues to be the case. SQM Research reveals that property listings in the Toowoomba region have been declining since 2020, and the pace of that decline gathered pace towards the end of 2021.

With just 893 properties on the market, April 2023 had one of the lowest levels of total listings ever recorded. This compares with an average of between 1,700 and 2,000 properties for most months of 2019. In other words, the number of listings has halved since pre-pandemic levels.

Because property prices are set by the laws of supply and demand, low supply is having a real impact on prices, with competition for properties remaining fierce.

Buyers still active

Demand across our market remains strong. Realestate.com.au reports that the number of people actively searching for properties in Toowoomba’s suburbs is far higher than the number of properties for sale.

For instance, in Harristown, just 52 properties are for sale at the time of writing, but realestate.com.au’s data shows 1,490 buyers actively looking for houses and 388 looking for apartments. Next door in South Toowoomba, there were 1,756 buyers looking for houses and 451 buyers looking for apartments, but just 48 properties for sale.

This pattern is repeated right across the region, showing the imbalance between supply and demand – a result of our population continuing to grow while housing construction has failed to keep pace.

Inner-city living becoming more popular

When there is an imbalance between supply and demand, Toowoomba remains relatively affordable, with median values across our city far lower than in Brisbane, the Gold Coast and other metropolitan areas.

This relative affordability has brought new residents into Toowoomba, especially those looking for a family home and room to move. However, as we wrote recently, this isn’t the only pattern we’re seeing. A growing number of people are coming to our city for an urban life, choosing to be close to amenities and Toowoomba’s increasingly famous cafes, restaurants and nightlife. And we’re also seeing a number of new developments close to the city centre to cater to this market.

As a result, prices in central Toowoomba have been outperforming the impressive gains of our region more widely. According to realestate.com.au, apartment values in downtown Toowoomba rose 55.2% over the past 12 months, while house prices rose 20.7%.

We expect to see even more growth in the inner Toowoomba next few years, as more people – including downsizers, young professionals, students and second home owners – are drawn to the ‘lock up and leave’ lifestyle of the inner city.

Rental market still tight

Finally, it’s also worth noting that the rental market remains exceptionally tight, although there are slightly more vacancies than in 2022. The regional vacancy rate now stands at 0.9% (up from a record low of 0.3% in March 2022).

This continues to put pressure on rental prices, with Toowoomba’s asking rent rising 17.9% in the past 12 months.

High rents are also encouraging both first homeowners and investors into the market. Investors are attracted by the fact that yields are now 4.3% for houses and 5.5% for units. Meanwhile, first homeowners are finding that higher rents are combined with generous government incentives to make buying a home a comparatively affordable and realistic proposition.

Latest data on property in our area

Here are some of the key statistics for our area, according to realestate.com.au.

Suburb Median house value Growth past 12 months Median apartment value Growth past 12 months
Toowoomba City $522,000 20.7% $447,500 55.2%
South Toowoomba $490,750 12.8% $407,500 23.5%
Harristown $455,000 16.7% $274,000 -6.3%
Rangeville $585,000 10.0% $540,000 28.6%
Mount Lofty $700,000 14.3% $462,500 52.6%
North Toowoomba $427,500 0.6% $377,500 30.2%
Wilsonton $435,000 16.1% $305,000 10.1%
Newtown $445,250 17.2% $325,000 11.1%
Rockville $408,000 20.0%
Drayton $479,500 6.6%
Kearneys Spring $550,000 20.7% $340,000 13.3%

Want more?

If you’re interested in investing in buying or selling property in Toowoomba and its surrounds, get in touch.

Article by Daniel Burrett

A born and bred local, Daniel has been excelling in the art of real estate since 2009. In October 2013, he became the General Manager of RE/MAX Success complimenting his work as a Sales Professional. In conjunction with his work in residential sal… View profile

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