Toowoomba Property Market Update 2nd Half of 2021

In Q2 2021, Toowoomba recorded a median house price of $430,000, and a median unit price of $315,000. This represents annual (Q2 2020 – Q2 2021) median price growth of 8.9% for houses, however units softened by -2.3%. Between Q2 2020 – Q2 2021 total sales in both markets have increased, by 1.0% for houses (to 572 sales) and by 86.8% for units (to 198 sales). There is increased consumer confidence, with real returns on capital investment in the house market – now is the time for owner-occupiers to act. First home buyers are encouraged to take advantage of more affordable unit prices.

Average vendor discounts between Q2 2020 and Q2 2021 have swung to a 0.4% premium for houses and tightened to -2.3% for units. The Toowoomba market is shifting to favour vendors, where house buyers must offer higher than the initial listing price. Unit buyers are still able to benefit from limited discounts available.

In June 2021, house rental yields in Toowoomba were recorded at an attractive 4.9%. In the 12 months to Q2 2021, the median house rental price increased by 10.9% to reach $388 per week, while average days on the market declined by -13.0% (to 20 days). These figures indicate a surge in investment returns, inviting astute investors to enter the market.

4+ bedroom houses have provided investors with +10.0% rental growth annually, with a median rent of $440 per week.

Also in June 2021, Toowoomba recorded a vacancy rate of 0.5%, on par with Toowoomba LGA and well below that of Brisbane Metro (1.3%). Vacancy rates in Toowoomba have continued to decline, recording a history low and remaining well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, as the economy recovers from COVID-19. There is a sustainable healthy rental demand and investors can be confident of a conducive investment environment in Toowoomba.