Toowoomba Market Update 2nd Half 2024
In Q2 2024, Toowoomba* recorded a median house price of $670,000, and a median unit price of $450,000.This represents annual (Q2 2023–Q2 2024) growth of 17.5%for houses and 25.0%for units. Comparing Q2 2023vs Q2 2024house sales decreased, by -1.7% (to 635sales in Q2 2024), which suggests an undersupplied house market. In the same comparison unit sales increased, by 8.4% (to 219sales in Q2 2024). This reflects higher demand. This created a buffer against higher interest rates, thus price growth for both houses and units. This confirms that now is an ideal opportunity for owners to capitalize on their investments.
HOUSE SALES YEAR HALF YEAR CHANGE FROM LAST
HOUSE MEDIAN PRICE
HOUSE RENTAL PRICE
Toowoomba will see approximately $245.0Mofnewprojectscommencing constructioninthe2nd halfof2024
SALES UNIT MEDIAN PRICE
RENTAL PRICE
MEDIAN PRICE Q2 2024
$670K $450K
MEDIAN PRICE Q2 2024
AVERAGE DAYS ON MARKET Q2 2024
41
AVERAGE DAYS ON MARKET Q2 2024
A main infrastructure project in the 2nd half of 2024is the Baillie Henderson Hospital - Rush Refurbishment ($8.0M). A State Government initiative, this will create staff accommodation, offices and meeting rooms.
Key projects that add to residential stock include:
• Eustondale Masterplan Glenvale Residential Subdivision Stages 1-2 (55 Lots)
• 1-3 Mylne StMixed-Use (8 units and 4 townhouses)
• 7-9 Kitchener Street Units (19 units)
All residential projects planned will only add units, townhouses and land lots (which takes time todevelop). The absence of new stand-alone dwellings will further push up house prices.
AVERAGE VENDOR DISCOUNT*
Average vendor discount reflects the average percentage difference between the first list price and final sold price. A lower percentage difference (closer to 0.0%) suggests that buyers are willing to purchase close to the first asking price of a property.
$800,000
$600,000
$400,000
$200,000
$0
Average vendor discounts between Q2 2023and Q2 2024 have increased to an even higher premium of 2.1% for houses and 4.1% for units; the peak premium for both. Market conditions in Toowoomba* still favourowners, as the buyers must offer above the first list prices. There is a strong seller’s market, due to low stock. Now is anideal time forsellers to maximize returns through transactions.
The suburb of Toowoomba has historically remained on par with the Toowoomba Local Government Area (LGA) in both house and unit median prices. 2024# saw house prices in the suburb of Toowoomba dip slightly below the LGA, which creates an opportunity for buyers.
The dominant proportion of houses sold in Toowoomba* across 2024#were in the premium price bracket above $800,000(28.2%). In contrast units recorded a dominant middle-price bracket between $400,000to $499,999 (32.6%). The most affordable options are still available for both property types, with 12.3%of houses sold at less than $499,999and 9.3% of units sold at less than $299,999.This is good news for first home buyers waiting to act.
MARKET COMPARISON
Toowoomba (4350) House
Toowoomba (4350) Unit
Toowoomba LGA House
Toowoomba LGA Unit
The market comparison graph providesa comparative trend for median price of houses and units over the past 5 years. The main LGA chosen was based on their proximity to the main suburb analysed, which is Toowoomba.
PRICE BREAKDOWN 2024 #
Less than $499,999 $500,000 to $599,999 $600,000 to $699,999 $700,000 to $799,999
and above
Less than $299,999
$300,000 to $399,999
$400,000 to $499,999
$500,000 to $599,999
$600,000 and above
RENTAL GROWTH 2024€
House rental yields in Toowoomba¥ was 4.1% as of July 2024,higher than Brisbane Metro’s 3.4%. This was paired with an 9.6%increase in median house rental price in the past 12months, at $515 per week, however a -6.6% decrease (to 554houses in Q2 2024) in the number of houses rented. Average days onthe market declined by -16.7% to 20days in Q22024, suggesting anundersupply and a more competitive rental market. This is beneficial for investors looking for a more affordable investment option thanBrisbane Metro.
4+ bedroom houses have provided investors with +7.3%rental growth annually, achieving a median rent of $590per week.
Toowoomba¥ recorded a vacancy rate of 0.5% in July 2024,slightly above Toowoomba LGA average (0.4%) butbelow Brisbane Metro (1.1%). Vacancy rates in Toowoomba decreased in the past 12months, due to renters returning to the market. Further, a 0.5% vacancy rate is a very low reading and well below the Real Estate Institute of Australia’s healthy 3.0%benchmark. This points to quicker rental occupancy and thus a conducive and sustainable investment environment.
RENTAL VACANCY RATES 2024
Toowoomba (4350) Toowoomba LGA Brisbane Metro REIA 'Healthy' Benchmark
RENTAL YIELD 2024
§ %
Toowoomba¥
PROJECT DEVELOPMENT MAP 2
TOOWOOMBA
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REFERENCES
* Toowoomba sales market data and key indicators encapsulates aggregate property market conditions within the postcodes of 4350 and 4352.
** Estimated values are based on construction value provided by the relevant data authority and does not reflect commercial and/or re-sale value.
# 2024 encapsulates sales transactions for 1st Half 2024 (01/01/2024 – 30/06/2024) only, other years encapsulates sales transactions for the full year (i.e 01/01 to 31/12 of the relevant year).
€ Annual rental growth is a comparison between Q2 2023 (01/04/2023 – 30/06/2023)and Q2 2024 (01/04/2024 – 30/06/2024) house median rent figures.
¥ Toowoomba rental market data encapsulates aggregate property conditions within the postcode of 4350.
§ Rental yields shown are as reported as of July 2024.
₳ Project development map showcases a sample of upcoming projects only, due to accuracy of addresses provided by the data provider for geocoding purposes.
£ Projects refers to the top developments within the suburbs of Charlton, Cotswold Hills, Glenvale, Harristown, Highfields, Meringandan, Newtown, Prince Henry Heights, Toowoomba, Toowoomba South, Wellcamp, Westbrook, Wilsonton.
µ Estimated value is the value of construction costs provided by relevant data authority, it does not reflect the project’s sale/commercial value.
ψ Commencement date quoted for each project is an approximate only, as provided by the relevant data authority, PRD does not hold any liability to the exact date.
Source: APM Pricefinder, Cordell Connect database, SQM Research, Esri ArcGIS.
Disclaimer: PRD does not give any warranty in relation to the accuracy of the information contained in this report. If you intend to rely upon the information contained herein, you must take note that the information, figures and projections have been provided by various sources and have not been verified by us. We have no belief one way or the other in relation to the accuracy of such information, figures and projections. PRD will not be liable for any loss or damage resulting from any statement, figure, calculation or any other information that you rely upon that is contained in the material.
Prepared by PRD Research. © All medians and volumes are calculated by PRD Research. Use with written permission only. All other responsibilities disclaimed. © Copyright PRD 2024.
