Toowoomba Property Market Update 1st Half of 2023
In Q4 2022, Toowoomba recorded a median house price of $538,500, and a median unit price of $390,000. This represents annual (Q4 2021 – Q4 2022) median price growth of 10.5% for houses and a growth of 21.9% for units. On a quarterly (Q3 2022 – Q4 2022) basis median prices grew at a slower rate, of 2.6% for houses and 8.3% for units. The market is reflecting cash rate hikes, lower consumer confidence, and current economic conditions. Q4 2022 recorded the lowest number of house sales, of 468 sales. There are now new opportunities for buyers ready to enter the market.
Average vendor discounts between Q4 2021 and Q4 2022 have trended to lower premiums for both property types, of 0.9% for houses and 0.8% for units. Market conditions in Toowoomba are starting to shift to favour buyers, as vendors are willing to accept closer to the initial listing price. Now is the time to transact.
House rental yields in Toowoomba was 4.7% in December 2022, on par with Toowoomba LGA (4.6%) and much higher than Brisbane Metro (3.6%). Median house rental price has increased by 14.5% in the 12 months to Q4 2022, whilst the number of houses rented increased by 20.8%. The same pattern can be seen in the unit rental market; thus, Toowoomba has a resilient rental market and is a more attractive affordable option compared to Brisbane Metro.
3 bedroom houses have provided investors with +15.1% rental growth annually, achieving a median rent of $420 per week.
Toowoomba recorded a vacancy rate of 0.8% in December 2022, which is slightly below Brisbane Metro’s 1.1% average. Vacancy rates in Toowoomba saw a slight uptick in late 2022, due to the number of investors capitalising on a tight rental market. That said vacancy rates remain below pre-COVID-19 levels. This suggests there is a conducive and sustainable environment for investors, especially now with the slower growth in median property sale prices in the past 12 months.
