Herron Todd White Valuers – Month In Review
As published by Herron Todd White Valuers
The Toowoomba residential property market remained steady throughout the first half of 2019 following a general decline since the peak of activity at the end of 2013. Although sales activity has been steady across the board, the market has continued to be multispeed and property specific. There has been little consistency with variations in sale prices and buyer interest across the established suburbs. The prestige market however, has been performing strongly, particularly in the eastern suburbs as has the upper end of the rural residential lifestyle market.
The median sale price for houses across the Toowoomba Regional Council LGA has displayed little growth over the past four years, sitting at approximately $380,000 at the end of 2018, up from $375,000 in June 2015. Another key indicator of the steady property market is the volume of property sales. In the six months ending December 2018, there were approximately 1,320 transactions across the Toowoomba Regional Council LGA. This is slightly less than the same period one year earlier, when approximately 1,375 sales were recorded and further highlights the steady residential property market.
The unit market has followed a declining trend, with low sales volumes following the oversupply of unit products that became apparent throughout 2016. Land sale volumes have continued to decline since a peak in mid 2015.
Toowoomba has seen an explosion of retirement village developments in recent years, ranging from medium density multi-level projects to low density detached dwellings. These projects are spread right across the city, from Glenvale in the west to Highfields in the north, with more projects being planned. This retirement living boom could be a driving factor in the low volume of land sales and sluggish level of housing transactions.
The surprising factor is that residential vacancy rates continue to decline. In postcode 4350, the vacancy rate was just 2% as at April 2019. This is considered tight and well below the balanced market level of 3%. Should this low level be sustained or continue to decline further, rental rates are likely to come under pressure.
The steady market conditions currently being experienced in the residential property market across Toowoomba are expected to continue throughout the remainder of 2019.