2024 Toowoomba Property Market Review and 2025 Outlook

By Tye Thies, Powered by CoreLogic

As 2024 closes, the property market across Toowoomba and broader regional Queensland has been marked by a mix of resilience and challenges. Leveraging insights from CoreLogic’s "Best of the Best 2024" report, let’s reflect on the past year and explore expectations for 2025.

2024 Market Highlights

1. Resilient Property Values
   Despite an environment of rising interest rates and affordability constraints, regional Queensland, including Toowoomba, showed relative strength in property values. Key suburbs in regional areas experienced moderate growth, with affordable markets outperforming higher-value segments. For example:
   • Suburbs like Collinsville recorded gross rental yields of 12.6%, showcasing investor appeal.
2. Affordability Pressures
   Housing affordability deteriorated nationally, with the median dwelling value reaching 8 times the median household income. In regional Queensland, however, affordability remained more attainable compared to metropolitan areas.
3. Rental Market Trends
   Rents in Toowoomba and other regional hubs saw steady growth, but at a decelerated rate compared to the rental boom of 2022. Areas like Noosa Heads saw rents surge by 23.7%, reflecting strong demand in lifestyle markets.
4. Shift in Demand Patterns
   The year observed a trend toward more affordable housing, driven by higher borrowing costs. Lower quartile home values nationally rose 10.3%, while upper quartile growth lagged.

Outlook for 2025

Looking ahead, 2025 is expected to bring continued adjustments shaped by macroeconomic factors and local market dynamics.

Interest Rates and Affordability

Interest rate cuts, anticipated mid-2025, may boost buyer activity in Toowoomba. However, affordability challenges will persist, with limited scope for drastic improvements even with reduced borrowing costs. Affordable markets, including units and entry-level housing, are likely to outperform.

Rental Market Evolution

The rental market in Toowoomba will likely stabilize further, with slower rent growth anticipated due to increased supply from investor activity and changing household compositions, such as multi-generational living.

Buyer and Seller Sentiment

• Buyers: Consumer sentiment is on the rise, with many considering 2025 a good time to enter the market, particularly if interest rates ease as forecast.
• Sellers: Property owners may hold off on selling unless market conditions improve, maintaining a tight supply that supports values.

Key Trends to Watch

1. Population Growth
   Regional hubs like Toowoomba remain attractive for their lifestyle offerings and relative affordability, which may sustain demand despite broader challenges.
2. Development and Infrastructure
   Continued investment in infrastructure, such as transport and community projects, will enhance Toowoomba’s appeal for both families and investors.
3. Investment in Affordable Housing
   Toowoomba may see increased focus on developments catering to first-home buyers and low-deposit buyers, especially given the financial constraints on younger demographics.

Conclusion

While 2024 brought headwinds, the Toowoomba property market demonstrated resilience. As we move into 2025, stakeholders should remain cautiously optimistic. Whether you’re a buyer, seller, or investor, understanding market shifts will be crucial for navigating the year ahead.

For detailed market data and insights, feel free to reach out to Tye Thies on 0408 249 666 or tye@tomoro.com.au

Full Corelogic Best of the Best report available here.