Herron Todd White Valuers – Month In Review
As published by Herron Todd White Valuers
The majority of new estates are concentrated in the western suburbs of Toowoomba, including Glenvale, Harristown, Torrington and Cotswold Hills and satellite suburbs including Highfields and Kleinton to the north and Westbrook, Wyreema and Cambooya to the south, however the most popular location based on rate of sale and price point is Kearneys Spring and infill estates within the established south Toowoomba suburb of Middle Ridge.
Traditional lots generally range from circa $150,000 to $200,000, however in Kearneys Spring and Middle Ridge, the price point shifts to circa $200,000 to $300,000, with larger lots in desirable locations achieving above this level.
Typical building costs for standard new homes in Toowoomba range from $1,000 to $1,200 per square metre plus site improvements, with higher spec dwellings up to $1,500 per square metre and beyond. Architecturally-designed, prestige dwellings can cost $2,000 to $3,000 per square metre plus site improvements.
Costs often vary by soil type, with some western areas with E class soils requiring additional foundation costs, while the volcanic red soils in the established urban areas and northern satellite suburbs often reflecting M-H class soils which provide a more favourable building platform and suit standard foundations.
Across Toowoomba and indeed the broader Darling Downs, land + build does not always equal value. Buyers appear to be willing to pay a new home premium, which in some locations can disappear once the keys are handed over, much like the new car premium which evaporates once the car is driven out of the showroom. This phenomenon is more likely to occur in less desirable locations and in smaller rural and regional markets and is less likely to be experienced in larger established areas with a good depth of market demand.
Owners are prepared to pay a premium price to build their own home as this gives them flexibility to personalise their investment. Buyers of completed new or near new homes are unable to influence dwelling features such as size, layout, aspect, kitchen and bathroom style and appliances. Accordingly, there can be some resistance in the market place to this product.