Herron Todd White Valuers – Month In Review
As published by Herron Todd White Valuers
Toowoomba has been fortunate to benefit from major infrastructure projects including the Toowoomba Second Range Crossing, the completion of QIC’s Grand Central Shopping Centre extension and the imminent Inland Rail Project.
As predicted in February, despite these major infrastructure projects, the Toowoomba and surrounding suburbs residential market has continued to remain relatively stable throughout 2018 following a slowing level of sales activity in 2017 and 2016. This followed the peak that was experienced throughout 2014 into mid 2015.
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 making it difficult to establish well performing suburbs and specific property types.
The rental market is in a balanced situation and vacancy rates remain relatively low.
The infrastructure projects are believed to have assisted in holding vacancy rates low with many employees living in the Toowoomba area throughout the construction processes.
As mentioned in February, the key development areas for new housing included the suburbs of Glenvale, Cotswold Hills, Torrington, Kleinton, Highfields, Cambooya and Westbrook. Demand for vacant land has slowed significantly as a result of reduced investor demand and limited local buyer enquiry for lots of less than 500 square metres. Sales rates for land in new housing estates are very slow, especially when compared to recent years where projects often sold out off the plan. Developers are starting to look at buyer incentives to attract interest in their respective projects. Unit development has also slowed.
In general, there were no surprises in the Toowoomba market and predictions made at the beginning of the year, appear to have been relatively accurate. We give our predictions a score of eight out of ten!