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October 3, 2023

Toowoomba’s Property Market in Spring 2023

As we move into the final quarter of 2023, Toowoomba’s property market is heating up again.

We look at the four trends impacting the market right now.

1. The sales market remains strong

Toowoomba has been one of Australia’s best-performing regional property markets over the past few years, according to CoreLogic. Property prices in many parts of our city have doubled since pre-pandemic levels, and the citywide median house value now stands at $585,025.

While Australia’s property markets went backwards over late 2022, Toowoomba remained robust, with prices remaining steady.

Now, however, home values in Toowoomba are moving forward rapidly again – especially those close to the city centre. For instance, realestate.com.au data shows house prices in Toowoomba City have risen 44% over the past 12 months, including 31.3% since January.

2. Stock levels are low

While the recent rises are partly the result of ongoing demand, they’re also being caused by a lack of supply. SQM Research shows that, across the Toowoomba region, there are roughly half the number of property listings now than we’d usually expect at this time of year. We believe there are several reasons for this.

First, as CoreLogic has noted, the traditional Spring selling season may be a thing of the past. Today’s sellers are less concerned about listing at any particular time of the year and more inclined to sell whenever it suits them – this means we didn’t see the traditional surge in listings over September that many are used to.

But that still only explains a small part of the phenomenon, as stock levels have been low for the past couple of years.

Instead, we’re noticing people holding off listing their homes because they have nowhere else to move into. In other words, because there are few ‘next homes’ to buy, people who would sell are choosing not to list (often choosing to renovate or knock down and rebuild instead). This is creating a cycle where fewer and fewer properties are coming to market.

That said, there may be some good news. CoreLogic noted that, around the country, listings have been steadily increasing over the past couple of months – even if we’re not seeing the traditional spring surge.

3. It pays to act fast

Low supply and high demand have made Toowoomba the fastest-moving regional market in the entire country.

On average, a property takes just 22 days to sell across our city. That’s eight days less than any other regional market.

If you’re looking to buy property in Toowoomba this spring, it pays to be prepared. Ensure you’ve sorted your finances out before (or at least have pre-approval) so you’re in a strong position to make an offer. Get your team of experts – such as your solicitor and lender – in place before finding the right home.

Most importantly, register with local real estate agents and visit as many open homes as possible. That way, you won’t just get access to homes before other potential buyers; you’ll also be more likely to recognise the ‘right’ property and be more confident in your decision-making.

4. The rental market is still strong too

Finally, it’s not just the sales market that is competitive. The rental market has also been tight, with the vacancy rate at or below 1.0% since late 2020.

After easing slightly in 2020, the vacancy rate has been falling again this year, going from 1.0% in May to 0.6% in August. This is putting real pressure on rents, which have risen by 9.0% over the past 12 months across the region.

This is providing strong returns to investors. For instance, in Toowoomba City, the yield now stands at 4.9% for houses and 5.37% for apartments.

With more infrastructure projects and more people set to move to Toowoomba, we don’t see any let-up in the rental market over the coming months.

That means, if you’re looking to rent this spring, you should also be prepared to act fast. And, if you’re looking to buy an investment property or let one out, you should anticipate a strong return.

Want more?

Get in touch with our experienced team today to find a property that suits your needs in Toowoomba.

Article by Jacqui Walker

“Verified reviews say I perform with integrity … that I have sincere and excellent people skills … and that I’m a genuine negotiator. So I’m certain you too would be glad you appointed me to sell your home or to help with your sensationa… View profile

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