July 2024 Property Report: Toowoomba and Regional Queensland

Highlights and Key Takeaways

Overall Market Performance

• National dwelling values increased by 1.8% in the June quarter, with regional Australia slightly outpacing the capitals at 1.9% growth.
• Over the past year, national dwelling values grew by 8.0%, with combined regional areas seeing a 7.0% increase.

Toowoomba Market Insights

• Toowoomba, as part of regional Queensland, experienced similar trends with steady growth in dwelling values.
• The regional Queensland market, including Toowoomba, saw a 1.9% increase in dwelling values over the past three months.
• Annual growth for regional Queensland dwelling values was recorded at 7.0%.

Sales and Listings

• Nationally, there were 37,148 sales in June 2024, an 8.6% increase from the previous year. Regional Queensland contributed significantly to this rise.
• New listings across Australia totaled 37,029 in the four weeks to July 7, reflecting a 7.8% increase compared to the same period last year. Regional areas saw a higher influx of new listings, which includes Toowoomba.

Days on Market and Vendor Discounts

• The median days on market for properties in regional areas, including Toowoomba, was 44 days in June 2024, compared to 31 days in capital cities.
• Vendor discounting in regional areas averaged 3.6%, slightly lower than the combined capital cities at 3.9%.

Rental Market

• Nationally, rental growth slowed to an annual rate of 8.2%. Regional Queensland, including Toowoomba, mirrored this trend with similar growth rates.
• Gross rental yields in regional Queensland stood at 4.4%, higher than the national average of 3.7%.

Investor Activity

• Investment in regional properties continues to be robust. In Queensland, investors made up a substantial portion of new lending, contributing to the region's market dynamics.
• The share of new lending for investment housing increased, with Queensland seeing one of the highest portions of investment lending.

Economic Factors

• The Reserve Bank of Australia (RBA) held the cash rate steady in June, which has influenced borrowing costs. Variable rates for owner-occupiers remained around 6.27%, and for investors, 6.65%.
• Economic conditions, including inflation and employment trends, continue to shape the property market dynamics.

Conclusion

Toowoomba and regional Queensland have shown resilience and steady growth in the property market through the first half of 2024. With increasing sales volumes and robust rental yields, the region remains an attractive area for both homebuyers and investors. The economic backdrop, including RBA's monetary policy and broader economic conditions, will continue to play a crucial role in shaping future market trends.

For detailed analysis and data, refer to the CoreLogic July 2024 Property Market Report CoreLogic July 2024 Property Market Report.