PRD Toowoomba Property Market Update 2nd Half of 2019

In Q2 2019, Toowoomba recorded a median house price of $395,000 (287 sales) and a median unit price of $292,000 (57 sales). This represents annual (Q2 2018 – Q2 2019) median price growth of 3.9% (houses) and a softening of -5.6% (units). During this time sales slowed, by -12.0% (houses) and by -40.6% (units). The house market is undersupplied, an opportunity for owners to sell. The unit market has become more affordable, ideal for first home buyers.

Average vendor discount between Q2 2018 and Q2 2019 has widened for both houses and units, to -4.6% and -5.3% respectively. The housing market conditions in Toowoomba has continued to favour buyers, where sellers are willing to negotiate below their initial listing price. First home buyers are encouraged to take this opportunity to enter the market.

In the 12 months to Q2 2019 rental demand in Toowoomba was stable for houses and increased for units, by 8.4%. During this time median rental price strengthened, by 2.9% to $350 per week for houses and by 1.8% to $285 per week for units. This indicates that there is a high demand towards renting but without compromising on rental returns.

2 bedroom houses provided the highest rental growth annually, of 6.5%. As of June 2019, rental yields in Toowoomba was 5.0% (houses) and 5.7% (units). These yields are on par with Toowoomba Region and outperforming Brisbane Metro.

Toowoomba recorded a low vacancy rate of 1.7% in June 2019, reflecting a sharp declining trend since December 2018. This suggest there is an increasingly healthier rental demand in Toowoomba, which is good news for investors.