Toowoomba Property Market Update 2nd Half of 2023
In Q2 2023, Toowoomba* recorded a median house price of $556,250, and a median unit price of $372,500. This represents annual (Q2 2022 – Q2 2023) growth of 5.0% for houses and 3.5% for units. Interestingly in the past quarter (Q1 – Q2 2023) median prices softened, by -1.5% (house) and -4.5% (units). This suggests cash rate hikes have translated into the market. Total house sales decreased annually (Q2 2022 – Q2 2023), by -24.5% (to 595 sales) and increased by 11.5% for units (to 232 sales). Both houses and units are highly demanded, with prices becoming more affordable for buyers.
Average vendor discounts between Q2 2022 and Q2 2023 have shifted to a lower premium of 0.4% for houses and 0.5% for units. The market conditions in Toowoomba* continue to favour vendors, as buyers still must offer above the initial listing price; albeit at a lower level than previous. The past 4 quarters have recorded the lowest premiums to date, thus buyers must act fast.
House rental yields in Toowoomba¥ was 4.3% in June 2023, above Brisbane Metro (3.7%). This was paired with a 9.3% median house rental price growth (to $470 per week) in the past 12 months to Q2 2023, alongside a 33.6% increase the number of houses rented (up to 636 rentals). The unit rental market shows a similar trend, with 8.6% median price growth and 18.7$ increase in the number of units rented. This suggests a highly demanded rental market.
4+ bedroom units have provided investors with +16.7% rental growth annually, achieving a median rent of $550 per week.
Toowoomba¥ recorded a vacancy rate of 0.9% in June 2023, slightly lower than Brisbane Metro (1.0%) average. Vacancy rates in Toowoomba¥ grew slightly in the past 12 months, due to investors returning and capitalising on the tight market. However 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.
