April 2025 Toowoomba Property Market Update

Overview of the Australian Market

The national property landscape showed modest growth to close out Q1 2025, with CoreLogic reporting a 0.7% quarterly increase in dwelling values across Australia. This follows three months of flat or negative movement, indicating a tentative return to upward momentum. However, annual growth has slowed to just 3.4%, suggesting tempered confidence and affordability pressures across the country.

Regional Queensland: Steady Performance Amidst Broader Stability

Regional Queensland continued to perform solidly, recording a 1.5% rise in dwelling values over the quarter and a 3.7% annual increase, outperforming most other regional markets across the nation. This places the region above the national average in both short- and long-term metrics, supported by consistent demand, regional migration trends, and affordability relative to major capitals.

Despite being impacted by broader economic caution and slightly rising days on market, sales volumes in Regional Queensland rose 2.8% year-on-year, showing buyer interest remains healthy.

Spotlight on Toowoomba

While specific suburb-level data for Toowoomba isn't detailed in the CoreLogic chart pack, the city typically tracks closely with the broader Regional Queensland trend.

Local market observations suggest:

• Strong interest in entry-level homes and lifestyle acreage continues, particularly from downsizers and relocating families.

• Days on market have edged upward, in line with regional trends—reaching a median of 50 days (up from 42 days a year ago).

• Listings remain tight, with total property listings still well below the 5-year average, contributing to price stability.

The aftermath of weather events like Cyclone Alfred was more acutely felt in northern regions, but some ripple effects on insurance sentiment and risk assessment may have mildly influenced buyer behaviour in Toowoomba and surrounds.

Rental Market Update

Rental pressures continue to moderate across the country, with annual rent growth at 3.8%, the lowest pace in four years. In Regional Queensland:

• Rental rates rose 5.6% annually, one of the highest among regional areas.

• Gross rental yields also remained solid at 4.4%, making the area attractive to investors, especially compared to capital city yields averaging around 3.5%.

The tight rental supply in Toowoomba, combined with steady demand, keeps rental yields buoyant, though the pace of rent growth is beginning to stabilise.

Looking Ahead: Factors Influencing the Months Ahead

?️ Australian Federal Election

With a federal election expected later this year, housing affordability, rental supply, and planning reforms are likely to be key campaign issues. Markets often pause in the lead-up to a national vote as buyers and sellers await policy clarity.

Potential policies to watch include:

• National incentives for build-to-rent schemes.

• Further reforms to negative gearing or capital gains tax.

• Housing affordability initiatives aimed at first-home buyers.

Any shifts in these areas could influence both investor and owner-occupier activity in Toowoomba and across regional Queensland.

? Global Trade & US Tariffs

The recent implementation of new US tariffs, particularly on Chinese imports, has added uncertainty to global economic forecasts. While not directly linked to the property market, flow-on effects may include:

• Increased inflationary pressures from global supply chain disruptions.

• Delays in construction materials or rising build costs, potentially affecting new housing supply.

• A more cautious approach from the Reserve Bank of Australia (RBA) regarding future interest rate decisions.

In April, the RBA held rates steady at 4.1%, but market expectations are building for a rate cut as early as May—contingent on further CPI data.

Final Thoughts

April 2025 presents a mixed but cautiously optimistic outlook for Toowoomba and broader regional Queensland. Solid quarterly growth, healthy rental yields, and increasing sales volumes are offset by longer selling times and constrained new listings.

As the year progresses, the interplay between global economic headwinds and domestic political developments will shape buyer sentiment and market momentum.

Tomoro will continue monitoring the local market closely to provide timely insights and guidance for buyers, sellers, and investors alike.

Need local insights?
Connect with the team at Tomoro for personalised guidance on buying, selling or investing in the Toowoomba region.

Data source: CoreLogic April 2025 Housing Chart Pack
Written by Tye Thies, Residential Property Specialist