February 2025 Toowoomba & Regional Queensland Property Market Report

By Tye Thies | Data sourced from CoreLogic

Market Overview

The Australian housing market experienced mixed movements in early 2025, with regional markets continuing to show resilience while capital city markets faced slight declines. CoreLogic estimates the combined value of residential real estate held steady at $11.1 trillion in January. Nationally, home values declined by -0.3% over the rolling quarter, driven by a -0.7% fall in capital city markets, while regional markets, including Toowoomba and other parts of Queensland, recorded a 1.0% increase.

Toowoomba & Regional Queensland Market Performance

Property Values

• Regional Queensland saw a 5.8% increase in dwelling values over the past 12 months, outpacing the national annual growth of 3.8%.
• Over the three months to January, dwelling values in Regional Queensland increased by 1.0%, reinforcing the ongoing demand for properties outside capital cities.
• The affordable segment of the market dominated growth, with lower quartile property values rising 9.4% over the year, compared to 1.5% growth in the upper quartile.

Sales Activity & Listings

• CoreLogic estimates there were 526,410 sales nationally in the 12 months to January, slightly down from 534,782 in October 2024.
• Sales volumes are slowing across the country, with the rolling six-month moving average dipping below historic levels.
• Vendor discounting has increased, with regional sellers negotiating a median discount of -3.8% in January, up from -3.6% in May 2024.
• In the four weeks to February 2nd, 34,926 new listings were recorded nationwide, below the five-year average by -3.6%.

Rental Market & Yields

• Australian rents increased by 4.4% over the year to January, more than double the pre-COVID decade average of 2.0%.
• National gross rental yields remained steady at 3.7%, with regional rental yields at 4.4%.
• Rental price growth has moderated, with the annual change expected to fall below long-term averages in the first half of 2025.

Housing Supply & Lending Trends

• Dwelling approvals increased by 0.7% in December, with unit approvals up 6.0%, while house approvals declined by -2.8%.
• New lending activity dropped slightly, with investor financing declining by -1.0%, and first-home buyer finance falling by -3.3%.
• The proportion of investor loans in Queensland remains strong, making up 40.0% of total new lending.

Market Outlook for Toowoomba & Regional Queensland

• Affordability and demand for regional properties continue to drive growth in Toowoomba and surrounding areas.
• Stable rental yields and continued tenant demand suggest a solid investment outlook.
• Rising vendor discounting and longer selling times indicate a market shift towards buyers having greater negotiation power.
• The potential for interest rate cuts in 2025 may improve borrowing conditions and boost market confidence.

Key Takeaways for Buyers & Investors

• Buyers: The regional market remains attractive for those seeking affordability and long-term growth potential.
• Sellers: Vendor discounting is increasing, meaning realistic pricing and strategic marketing will be key to securing a sale.
• Investors: Rental yields remain strong, particularly in regional areas, making Toowoomba a viable option for long-term investment.

Final Thoughts

As we move into 2025, the property market in Toowoomba and regional Queensland remains resilient despite national slowdowns. With strong annual growth, solid rental yields, and sustained buyer interest, regional markets are proving to be a key driver in Australia’s overall real estate stability. However, with increased negotiation margins and slower sales volumes, both buyers and sellers will need to adopt a strategic approach to navigate the evolving market conditions.

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