Toowoomba Property Market Update 1st Half of 2022

In Q4 2021, Toowoomba recorded a median house price of $479,000, and a median unit price of $320,000. This represents annual (Q4 2020 – Q4 2021) median price growth of 14.2% for houses and a softening of -5.9% for units. Between Q4 2020 – Q4 2021 total sales in both markets increased, by 24.7% for houses (to 1036 sales) and by 59.6% for units (to 332 sales). Owner occupiers and down-sizers can benefit from real returns on capital investment, as median price growth is alongside higher sales numbers. Ready-to-sell houses are in low supply, creating an opportunity for developers.

Average vendor discounts between Q4 2020 and Q4 2021 have swung to a premium, to 4.1% for houses and 1.3% for units. Market conditions in Toowoomba have now shifted to favour sellers, where buyers are willing to offer above the first list price.

In December 2021 house rental yields in Toowoomba were recorded at 4.9%, much higher than Brisbane Metro (3.4%). In the 12 months to Q4 2021 the median house rental price increased by 9.3% to reach $410 per week, while average days on the market remained at a low 17 days: thus, indicating resilient rental market.

2 bedroom houses have provided investors with +11.4% rental growth annually, with a median rent of $312 per week.

Also in December 2021, Toowoomba recorded a vacancy rate of 0.5%, on par with Toowoomba LGA and well below Brisbane Metro (1.3%). Vacancy rates in Toowoomba have trended below 1.0% for the past 19 months and remain well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%. This confirms there is a healthy rental demand and investors can be confident of a conducive investment environment in Toowoomba.