What’s Affecting The Toowoomba Property Market In 2019?
Several factors have combined to create a perfect storm of circumstances for the Toowoomba property market.
So why is the Garden City seeing different market conditions to most other regions around Australia?
1. A multitude of Toowoomba infrastructure projects
Toowoomba has been inundated with major infrastructure projects in recent years:
- Wellcamp Airport has opened the city up to both national and Asia-Pacific agri-business markets.
- Qantas is building its Pilot Academy on-site at the airport. Slated to begin operations mid-2019, it will bring thousands of budding pilots to the Garden City over the next two decades.
- The Queensland Government is investing in both healthcare and educational infrastructure, with new hospitals and schools planned for the coming years.
- The $500 million Grand Central redevelopment drew hundreds of new retailers to the city.
- Toowoomba’s Second Range crossing is nearing completion, diverting heavy traffic away from the city and improving liveability for residents.
Such major projects are contributing to a booming Toowoomba property market, with some experts suggesting the city can expect even bigger market improvements in the coming years.
2. Buyer trends in the Toowoomba property market
A variety of buyer trends are affecting Toowoomba market conditions this year. Investors have been few and far between but we have observed more investors buying property, renovating and then flipping it for a profit.
For the past 12 months, we’ve also seen the city’s commercial property sector take centre stage as non-local buyers turn away from metro areas and seek greater investment opportunities in regional Toowoomba.
As more people make the shift to regional living in Toowoomba, that growth is being matched by an extremely strong housing market. In fact, Toowoomba has the biggest housing market growth out of all regional Queensland.
This is perhaps unsurprising when you see the top five $500,000 housing markets over three years. The popular Toowoomba suburb of Middle Ridge is a runaway leader in Queensland, with a 23.90% three-year forecast for percentage growth, and a $125,353 price change forecast for that same period.
3. Lower cost of entry
But despite runaway success stories like what’s happening in Middle Ridge, moving to a regional area like Toowoomba often means an easier point of entry into the housing market.
Buyers can enjoy a median sale price in Toowoomba of $364,000 – well below the national average of $485,000. And even though house prices in the Garden City are more affordable than the Australian average, the median gross yield of 4.3% is actually higher than the national average (4.24%).
This is good news for buyers as well as investors. And if there’s any truth to the experts’ claims that Toowoomba is one of a select few affordable markets where housing prices are expected to rise, we could see the inland city as something of an outlier against cooling property prices nationwide.
4. Shifting perceptions of traditional lenders
Although the long-term effects of tighter lending requirements on the Toowoomba property market remain to be seen, it’s likely to play a role in buyer trends as we head into the second half of 2019. Many believe we will see buyers turn to non-traditional lenders and mortgage brokers will become more important in securing home loans.
Take advantage of Toowoomba market conditions today
Looking to buy, invest or sell your current home? Talk to the Toowoomba real estate experts and find out how we can help make your property dreams a reality.