Herron Todd White Valuers – Month In Review
As published by Herron Todd White Valuers
Detached housing on small lots is growing in popularity throughout the Toowoomba area, particularly in the older areas close to the CBD. Many infill blocks have been sub-divided into smaller lots or have had unit complexes built on them.
Key development areas including the suburbs of Glenvale, Cotswold Hills, Torrington, Kleinton, Highfields, Cambooya and Westbrook are also seeing a concentration of small lots which could result in an oversupply of product as infrastructure projects come to a close and workers vacate. This small lot product is still meeting some local market resistance with buyers often represented by absentee investors buying house and land packages.
The unit market has seen low sales volumes following the oversupply of unit product that became apparent throughout 2016. Land sale volumes steadily increased in the three years between 2012 and 2015, peaking at 1,063 sales in 2015. In 2016, 681 sales were recorded and 677 in 2017 suggesting a cultural shift towards unit living in the Toowoomba region. The Toowoomba region has experienced strong and steady economic growth with an annual average increase of over 3% in the past decade. To cater for this growth, major infrastructure projects have recently been completed or are underway, including the Toowoomba Second Range Crossing, QIC’s Grand Central Shopping Centre extension and Brisbane Wellcamp airport. Also in the pipeline benefiting the Toowoomba area will be the imminent Inland Rail Project.
Looking back, Centenary Heights, Rangeville, South Toowoomba and parts of Harristown would have been considered new suburbs in 1968, with the development of brick veneer homes featuring aluminium window frames and flooring being the Month in Review August 2018 Residential 48 most popular housing construction. Most homes of the era featured 3- or 4-bedrooms, 1-bathroom, one living area and single garages. These homes are now popular with first home buyers as they provide relatively affordable price points, say $300,000 to $400,000 and renovation potential.
By comparison, newly built dwellings in suburbs including Kearneys Spring, Middle Ridge and Glenvale feature 4-bedrooms, 2-bathrooms, two living areas and two car attached garages. New homes in these suburbs can be purchased in the $475,000 to $650,000 range.
Toowoomba is now the second largest inland city in Australia and has emerged as one of the most dynamic regional cities in the country in recent years. The property market has been driven by sound economic and population growth which has provided a blend of opportunity and stability. Combined with recent infrastructure and lifestyle enhancements, Toowoomba has cemented its position as the capital of the Darling Downs and south-west Queensland.