October 2024 Property Market Update: Toowoomba & Surrounds

By Tye Thies, brought to you by CoreLogic

The property market in regional Queensland, particularly Toowoomba, has experienced steady performance during the third quarter of 2024. This update, based on CoreLogic’s October 2024 data, provides a detailed look at recent trends, offering insight into what property investors, buyers, and sellers can expect in the coming months.

Regional Queensland: Steady Growth Amidst National Cooling

Regional Queensland has shown resilience in its housing market, with dwelling values rising by 1.0% over the quarter. This growth, while slower compared to previous periods, mirrors national trends where the pace of price increases has moderated. The annual change in dwelling values for regional Queensland stands at 6.7%, reflecting solid growth over the past 12 months.

The combination of growing demand for regional properties and relatively lower price points compared to capital cities has maintained buyer interest. However, the softening of growth rates signals a more balanced market, potentially offering opportunities for those looking to enter the property scene without the intense competition seen earlier this year.

Toowoomba: A Regional Gem with Strong Appeal

Toowoomba, as one of Queensland’s prominent regional centers, continues to be a popular location for both investors and homebuyers. The city benefits from its proximity to Brisbane, solid infrastructure, and ongoing developments, making it an attractive option for those seeking affordable housing without compromising on amenities.

Recent data suggests that property values in Toowoomba have grown in line with the broader regional Queensland market, supported by consistent demand. Additionally, Toowoomba’s rental market remains robust, with tight supply contributing to steady rental income for property investors.

Sales Activity and Listings

In terms of sales activity, regional Queensland has experienced a 10.5% rise in total sales volumes over the past year. This uptick suggests a healthy level of transactions, supported by strong demand in markets like Toowoomba. As the spring selling season progresses, the number of new listings has increased, with regional Queensland seeing a 1.5% rise compared to the same period last year. This influx of listings may provide more options for buyers, while potentially moderating price growth as supply catches up with demand.

Time on Market and Vendor Discounting

Despite increased listings, properties in regional Queensland are selling relatively quickly. The median days on market have risen slightly to 43 days, up from 37 days last year, reflecting a more balanced market where buyers have a bit more time to make decisions, but properties are still moving at a healthy pace.

Vendor discounting, the difference between the initial listing price and the final sale price, remains relatively low in regional Queensland at -4.0%, indicating that sellers are still achieving strong prices close to their asking figures.

Rental Market: Stability with Modest Growth

The rental market across regional Queensland has seen annual rent growth of 6.8%, slightly below the national average. In Toowoomba, rental demand remains high, driven by population growth, a limited supply of new rental properties, and strong investor interest. This demand is helping to maintain competitive rental yields for property investors.

Looking Ahead

As we move towards the end of 2024, the property market in regional Queensland, including Toowoomba, is expected to remain steady. While growth rates have eased, the fundamentals of strong demand and limited supply suggest that the region will continue to perform well, especially for investors and homebuyers looking for affordable opportunities outside of major capital cities.

For those looking to buy or sell in Toowoomba, the current market conditions offer opportunities for both. Buyers can take advantage of the increased number of listings, while sellers can still expect to achieve favorable prices, particularly as demand remains solid in the region.

Stay tuned for more updates as we continue to monitor the market through the remainder of the year.

Brought to you by Tye Thies in partnership with CoreLogic. Data referenced is from CoreLogic's October 2024 Monthly Housing Chart Pack.