Toowoomba Property Market Update 1st Half of 2024
In Q4 2023, Toowoomba recorded a median house price of $605,000, and a median unit price of $405,000. This represents annual (Q4 2022 – Q4 2023) growth of 12.0% for houses and 4.5% for units. On a quarterly basis, median prices remained stable for houses and grew by 2.5% for units. During this time sales decreased for houses, by -2.5% (to 700 sales), but increased by 37.4% (to 279 sales) for units. The latest quarterly data suggests a more balanced market. Although there is an undersupply of houses and a higher demand for units, prices grew at a slower pace. This is beneficial for buyers and sellers, thus now an ideal time to transact.
Average vendor discounts between Q4 2022 and Q4 2023 have swung from a discount to a premium of 0.5% for houses and remained at a premium of 1.0% for units. There is a shift in market dynamics, towards vendors. Buyers must now offer above the first list price. That said the premium recorded for Q4 2023 is still quite low, which suggest now is the time to enter the market – before it is any higher due to the undersupply of new stock.
House rental yields in Toowoomba was 4.2% as of December 2023, higher than Brisbane Metro’s 3.6%. This was paired with an 8.7% increase in median house rental price in the past 12 months, at $500 per week, and a 9.3% increase (to 633 houses) in the number of houses rented. Average days on the market declined by -12.5% to 21 days, which suggests a highly demand rental market. This is beneficial for investors looking for a more affordable option than Brisbane Metro.
3-bedroom houses have provided investors with +9.5% rental growth annually, achieving a median rent of $460 per week.
Toowoomba recorded a vacancy rate of 0.9% in December 2023, slightly above Toowoomba LGA average (0.6%) but below Brisbane Metro (1.2%). Vacancy rates in Toowoomba grew slightly in the past 12 months, due to investors returning and capitalising on the tight market. However, a 0.9% vacancy rate is still a very low reading and well below the Real Estate Institute of Australia’s healthy 3.0% benchmark. This still points to quicker rental occupancy and thus a conducive and sustainable investment environment.
