Toowoomba Property Market Update 1st Half of 2021
In Q4 2020, Toowoomba recorded a median house price of $420,000, and a median unit price of $319,000. This represents annual (Q4 2019 – Q4 2020) median price growth of 5.8% for houses and 6.3% for units. Between Q4 2019 – Q4 2020 house sales increased, by 11.5% (to 659 sales). Unit sales also increased, by 35.4% (to 172 sales). The Toowoomba property market is on a post COVID-19 recovery trajectory, due to an increase in demand in regional areas. Price growth combined with increased sales suggest a real return on capital investment. Now is an ideal time to transact in Toowoomba.
Average vendor discounts between Q4 2019 and Q4 2020 have tightened, to -1.9% for houses and -3.8% for units. Toowoomba offers unique opportunities. Sellers can achieve a final sale price closer to their first list price, whilst buyers can benefit from a discount. Now is an opportune time to transact in Toowoomba.
In December 2020, house rental yields in Toowoomba were recorded at a healthy 4.9%. In the 12 months to Q4 2020, median house rental price increased by 5.6%, to $375 per week. This is in conjunction with average days on the market declining by -19.2% (to 21 days). This establishes the Toowoomba rental market as a highly demanded area.
4+ bedroom houses have provided investors with +2.5% rental growth annually, with a median rent of $410 per week.
In December 2020, Toowoomba recorded a significantly low vacancy rate of 0.9%, well below that of Toowoomba LGA (1.4%) and Brisbane Metro (1.8%). Vacancy rates in Toowoomba are currently lower than pre-COVID-19 levels, and well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%. This confirms there is highly resilient rental market demand even amidst COVID-19, thus investors can be confident in their decision to enter the Toowoomba market.