Toowoomba Property Market Update 2nd Half of 2020
Toowoomba recorded a median house price of $390,000 and a median unit price of $303,000 in Q2 2020. Annual (Q2 2019 – Q2 2020) median house price softened by -2.5%, however median unit price grew by 9.7%. In Q2 2019 - Q2 2020 total sales declined, by -9.3% for house (to 456 sales) and by -28.0% for units (to 72 sales). A decline in demand was expected due to COVID-19. However, a slight cooling in median house price and an increase for units indicates a resilient market. With a slightly more affordable house market and less competition, now is an ideal time to enter the market.
Over the 12 months to Q2 2020, average vendor discounting has remained stable at -4.5% for houses but tightened to -4.5% for units. Toowoomba provide unique opportunities. Sellers can achieve a final sale price closer to their first list price, whilst buyers can still benefit from a discount. Now is the time to transact.
In June 2020, house rental yields in Toowoomba was recorded at 4.8%. In the 12 months to Q2 2020 median house rental have remained stable at $350 per week, however unit median rental price grew by 3.5% at $295 per week. This indicates there is a highly resilient rental market in Toowoomba.
4+ bedroom houses have provided investors with +1.3% rental growth annually, with a median rent of $405 per week.
Over the June 2020 Quarter, Toowoomba recorded a low vacancy rate of 0.7%, on par with Toowoomba LGA (0.7%) and outperforming Brisbane Metro (2.4%). Vacancy rates in Toowoomba have continued to be on a declining trend since June and December 2019, even amidst COVID-19 conditions. This confirms there is a healthy rental demand and investors can be confident of conducive investment environment in Toowoomba .