Toowoomba Property Market Update 2nd Half 2025
Toowoomba blends city convenience with country charm, offering affordable living and a vibrant cafés scene surrounded by stunning parks and gardens. With top-tier schools and a cooler climate than much of Queensland, it’s a peaceful and practical place to live.
Property Trends
In Q2 2025, Toowoomba recorded a median house price of $720,000 and a median unit price of $525,000. This represents annual (Q2 2024 – Q2 2025) price growth of 11.6% for houses and 14.8% for units, which creates an ideal opportunity for owners to sell. Comparing Q2 2024 and Q2 2025, sales declined by -27.6% for houses (to 602 sales in Q2 2025) and -28.8% for units (to 161 sales in Q2 2025). There is an undersupplied house and unit market, which created a buffer against higher interest rates – hence price growth. With only a few new dwellings planned for 2025, buyers must act fast.
Project Development
Toowoomba plans to see approx. $1.8B of new projects to commence construction in 2025. A key focus is on commercial projects, which will stimulate the local economy through job creation. There are 39 units, 23 townhouses, 3 dwellings, and 839 land lots planned for Toowoomba in 2025. The number of ready-to-sell stock planned will not meet demand, due to a high number of sales in Q2 2025 (602 houses). The market will remain undersupplied, which will continue to drive up property prices.
Rental Market & Growth
House rental yield in Toowoomba was 4.1% as of June 2025, higher than Brisbane Metro’s 3.2%. This was paired with a 5.8% increase in median house rental price in the past 12 months, at $550 per week, and a -4.2% decrease (to 543 houses in Q2 2025) in the number of houses rented. Average days on the market declined by -5.0% in the past 18 months, to a historical low level of 19 days. Combined, this suggests an undersupplied and highly competitive rental market. This is beneficial for investors looking for a more affordable investment option than Brisbane Metro.
Vacancy Rates & Property Investment
Toowoomba recorded a vacancy rate of 0.5% in June 2025, which is on par with Toowoomba LGA’s average (0.5%) but below Brisbane Metro’s average (0.9%). Vacancy rates in Toowoomba remained stable in the past 12 months, suggesting a resilient rental market. Further, a 0.5% vacancy rate is significantly below the Real Estate Institute of Australia’s healthy 3.0% benchmark. This presents quicker occupancy of rental homes and thus a sustainable investment environment. Investors can be confident to invest in Toowoomba, even with a higher property sale price (and thus entry price) in Q2 2025.
