November 2024 Property Market Update

November 2024 Property Market Update for Toowoomba and Regional Queensland

Authored by Tye Thies

As we move deeper into the final quarter of 2024, the property landscape in Regional Queensland, particularly in areas like Toowoomba, presents a mixed bag of opportunities and challenges. Here’s a detailed look at the latest data from CoreLogic's November 2024 Chart Pack, which offers insights into regional Queensland's performance across sales, listings, and rental markets.

Regional Queensland Dwelling Values

In Regional Queensland, dwelling values continued a steady increase, rising by 1.1% over the three months to October 2024. This quarterly growth outpaced the combined capital cities, which saw a more modest increase of 0.8%. Over the past 12 months, dwelling values in Regional Queensland rose by 6.3%, aligning closely with national averages and slightly surpassing Brisbane's annual growth rate of 5.9%. This consistency indicates resilience and ongoing demand across regional markets like Toowoomba.

Sales and Listings Activity

CoreLogic estimates a total of 522,401 sales across Australia over the past year, with regional sales showing mixed trends. In October, regional sales were down 5.9% compared to the typical levels for this period, reflecting a shift in buyer behavior and possibly the impact of interest rate stability on market dynamics. However, newly advertised listings in the month leading to November 3 were 1.3% higher than the same period last year, suggesting increased seller confidence as we move through spring. This trend provides more choices for buyers, easing some of the pressure felt earlier in the year.

Rental Market Conditions

Rental growth has moderated across the board, with Regional Queensland seeing an annual rental rate increase of 6.3%, slightly above the national average of 5.8%. However, growth in rental rates appears to be slowing, with only a 0.5% increase recorded over the past quarter. This gradual slowdown is consistent with national trends, as rental demand continues to balance with available supply.

Rental yields across Regional Queensland remain robust, with average gross yields reaching approximately 4.4%. This rate is higher than in capital cities, highlighting the appeal of regional areas for investors looking for stable returns in a lower-cost market. Vacancy rates have also shown improvement; at 1.8%, they are slightly higher than last year’s historically low levels but still indicate a tight rental market.

Market Outlook for Toowoomba

Toowoomba has shown stable growth, with values reflecting a balanced market environment. The steady increase in dwelling values and sustained rental demand suggests that both owner-occupiers and investors continue to see value in the region. Additionally, increased listings may contribute to a more balanced market, helping to moderate price growth while keeping Toowoomba’s property market attractive for a broad range of buyers.

With the national cash rate remaining steady, financing conditions for prospective buyers and investors have remained relatively stable, although lending activity has seen some recent declines. This stability, combined with positive growth trends in Toowoomba, indicates that the market may continue to see modest gains in the months to come.

Conclusion

Regional Queensland, with its affordability and steady growth, remains a strong performer in the Australian property landscape, even as national and capital city markets show signs of leveling. For potential buyers and investors, Toowoomba and its surrounding areas offer stability and potential for long-term growth, backed by resilient demand and favorable rental yields.

As always, staying informed and adapting to the latest market trends is key to making the most of opportunities in the ever-evolving property market. For more personalized insights or guidance on property decisions in Toowoomba, contact Tomoro for professional assistance.

Full Corelogic report available here.