Herron Todd White Valuers – Month In Review
As published by Herron Todd White Valuers.
2020 – WOW! What a year! 2020 commenced on a generally stable activity and value platform, although the market was already beginning to show signs of being multispeed and property specific with strong demand and value levels in the upper end of the market. In our February 2020 Month in Review outlining our predictions for the year, we forecast this trend to continue throughout 2020 – and it definitely has!
The local market experienced a sharp reduction in sale volumes in April during the initial COVID-19 lockdown phase, but quickly rebounded with solid sale volumes in May and rising to strong sale volumes from June onwards.
Selling agents have been reporting strong buyer demand and limited supply, which in some instances has seen strong sale prices being achieved.
In particular, selling agents are reporting strong demand from non-local purchasers looking to relocate to more regional areas within an approximate two-hour commuting distance of Brisbane, such as Toowoomba, Highfields, the Southern Downs region, the Somerset region and the Lockyer Valley. Despite the COVID-19 backdrop, there have been several high value sales for this region and here are just a few examples:
Address: 19 Kara View Court, Rangeville
Sale Price: $2.4 million Sale Date: 20 Feb 2020
Address: 56-58 East Street, Redwood
Sale Price: $1.9 million Sale Date: 2 May 2020
Address: 15 St Ives Court, Mount Lofty
Sale Price: $1.75 million Sale Date: 16 Sep 2020 (Agent advised)
Address: 35 Curtis Street, East Toowoomba
Sale Price: $1.7 million Sale Date: 19 Sep 2020
The old adage of location, location, location has continued to be proven correct throughout 2020 in Toowoomba, with properties in the sought-after eastern suburbs of Toowoomba remaining in high demand. In addition, there has continued to be good demand for contemporary style renovated colonial dwellings in the well-regarded suburb of East Toowoomba. An example of this is illustrated below, with a colonial cottage at the road front and a contemporary style renovation at the rear:
Address: 38 Eleanor Street, East Toowoomba
Sale Price: $880,000 Sale Date: 21 July 2020
In our February 2020 Month in Review, we noted that there had been a significant reduction in demand for vacant land and slow sale rates for land in new estates, however, a flow on effect of COVID-19 and the government Home Builder Grant has been a sharp reversal of this trend and very strong demand for vacant land in new estates. There are currently very few vacant lots available for sale which are already developed. Some developers have commenced selling the next stages of their estates off Disclosure Plans to give purchasers the best chance of obtaining the Home Builder Grant, and in some instances these lots are already all under contract.
Another sector of the market which has continued to experience strong demand is the rural lifestyle sector, with many properties within a short commuting distance of Toowoomba having sold in the $1 million plus price bracket. An example of this is noted below:
Address: 2199 Gore Highway, Umbiram
Sale Price: $1.15 million Sale Date: 20 Aug 2020
On reflection, the local property market has rebounded strongly from the impact of COVID-19 and it remains to be seen if this continues in 2021.