Toowoomba Property Market Update 2nd Half of 2022
In Q2 2022, Toowoomba recorded a median house price of $530,000, and a median unit price of $360,000. This represents annual (Q2 2021 – Q2 2022) median price growth of 23.3% for houses and 14.3% for units. Total sales decreased between Q2 2021 – Q2 2022, by -13.4% (to 715 sales) for houses and by -10.1% for units (to 213 sales). Owners can benefit from real returns on investment, as median price growth has been fuelled by an imbalance in high demand and low stock. Both the house and unit markets are heavily undersupplied, which can provide a buffer in a rising cash rate environment.
Average vendor discounts between Q2 2021 and Q2 2022 have rapidly shifted for both property types, to a higher premium of 3.9% for houses and 2.5% for units. Market conditions in Toowoomba continue to favour vendors, as buyers are willing to offer above the initial listing price. This reflects the imbalance between supply and demand in the market.
House rental yields in Toowoomba was 4.6% in June 2022, higher than Brisbane Metro. This was paired with a 13.4% median house rental price growth between Q2 2021 and Q2 2022, and a -12.0% in the number of houses rented. Average days on the market declined during this time frame, of -14.3% (to 18 days), which further confirms an undersupplied market. This suggest a prime market for investors to consider, especially as it is a more affordable market compared to Brisbane.
3 bedroom houses have provided investors with +14.3% rental growth annually, achieving a median rent of $400 per week.
Toowoomba recorded a vacancy rate of 0.3% in June 2022, which is below Brisbane Metro’s 0.6% average. Vacancy rates in Toowoomba have steadily decreased over the past 24 months, sitting within the 0.5% band over the past 6 months. This indicates quicker occupancy of rental properties, due to higher rental demand. These key indicators create a conducive and sustainable environment for investors, despite the increase in median sale prices of property over the past 12 months.
