June 2025 Property Market Update – Toowoomba Region

As we reach the midpoint of 2025, the property market across Toowoomba and greater regional Queensland continues to show resilience and strength, despite a backdrop of shifting national economic conditions. Drawing on the latest data from Cotality and local performance insights from postcodes 4350 and 4352, here’s a comprehensive look at what’s shaping the real estate landscape.

Toowoomba Market Overview (Postcodes 4350 & 4352)

Strong Growth in House Prices
House values in both 4350 and 4352 postcodes have seen robust year-on-year growth:

• 4350 (Houses): Median price rose to $665,000, up from $580,000 last year – a 14.7% increase.

• 4352 (Houses): Surged to $855,000, compared to $775,000 – a 10.3% gain.

This growth is a continuation of a strong upward trend over the past five years, driven by increasing demand, limited supply, and Toowoomba’s reputation for lifestyle, education, and infrastructure.

Unit Market Recovery
Units in both areas have rebounded:

• 4350 Units: Median price increased to $480,000, a 21.5% rise from $395,000.

• 4352 Units: Now at $517,500, up from $449,000 – a 15.2% jump.

Vacant Land Values Surge
Vacant land in 4350 saw a significant jump, rising to $364,500 (up from $240,000), a 51.9% increase. This suggests heightened interest in new builds as Toowoomba continues to grow.

Regional Queensland in Focus

Price Growth Continues, but Moderates
According to the Cotality Monthly Chart Pack:

• Regional QLD dwelling values rose 5.4% over the 12 months to May 2025.

• While this remains strong, it's a deceleration from the double-digit growth recorded in previous years.

Rental Market Conditions

• Rental growth in regional QLD: Up 5.4% annually.

• Gross rental yields: Holding steady at 4.4%, attractive for investors seeking higher returns than capital cities.

Listings & Supply

• New listings in regional QLD were down -9.6% year-on-year.

• Total listings declined by -6.5%, indicating tight supply which supports price growth.

National Snapshot & Lending Trends

Sales Activity

• National sales rose 2.3% year-on-year, though May volumes dipped slightly below the five-year average.

• In regional markets like Toowoomba, well-priced properties continue to move steadily.

Time on Market

• Median days on market in regional areas increased to 34 days, up from 30 days last year – suggesting a slightly longer selling process but still within normal range.

Vendor Discounts

• Regional QLD vendor discounts average 3.7%, indicating some negotiation room but still relatively tight margins.

Interest Rates & Lending

• The RBA reduced the cash rate to 3.85% in May.

• More cuts are anticipated, which may improve borrowing capacity and spur further buyer activity.

• Investor activity remains strong, with investors accounting for 38.8% of QLD’s total lending.

Key Takeaways for Toowoomba Buyers and Sellers

• Sellers: It’s still a strong market with house and unit prices trending upward. Presentation and pricing remain key, especially as buyers have more options.

• Buyers: While prices have increased, softer competition compared to peak COVID periods and future interest rate cuts could create strategic buying opportunities.

• Investors: Rental returns in Toowoomba and regional QLD remain attractive, particularly as yields in capital cities compress.

Looking Ahead

The remainder of 2025 is expected to be shaped by:

• Evolving interest rate policy from the RBA.

• Continued population migration from capitals to lifestyle-rich regions like Toowoomba.

• Limited new housing supply, especially in land-constrained suburbs.

With strong fundamentals and positive momentum, Toowoomba’s market continues to offer opportunities across the board for homeowners, first-home buyers, investors, and developers.

Prepared by Tye Thies – Local market insights you can trust.

Monthly Chart Pack - June 2025

4350, 4352 market comparison