Toowoomba Property Market Report – July 2026

Regional Queensland continues to outperform as the market normalises

The Australian property market has entered a new phase. After several years of exceptionally strong growth, rising interest rates, affordability pressures and cost-of-living challenges have slowed buyer activity in many capital cities. While Sydney and Melbourne have recorded declining values over recent months, regional Australia continues to demonstrate resilience—and Toowoomba remains one of the standout regional markets.

According to the latest Cotality (formerly CoreLogic) Monthly Housing Chart Pack, Australian dwelling values declined 0.7% over the June quarter, however regional markets increased by 1.1%, significantly outperforming the combined capital cities, which fell 1.3%. Annual national growth remains positive at 7.3%, with regional Australia recording a strong 11.0% annual increase.

National Market Snapshot

The latest figures show Australia is transitioning from a high-growth market to a more balanced environment.

Key national highlights:

• National dwelling values declined 0.7% over the June quarter.
• Annual dwelling values remain 7.3% higher than 12 months ago.
• Regional markets increased 1.1% during the quarter.
• Combined capital cities declined 1.3%.
• Annual regional growth sits at 11.0%, compared with 6.1% across capital cities.

Brisbane continues to be one of Australia's strongest capital city performers, recording:

• 17.4% annual growth
• 1.3% quarterly growth
• Values remaining at record highs.

This strength continues to support demand throughout South East Queensland and key regional centres including Toowoomba.

What This Means for Toowoomba

Although Toowoomba is not individually reported within the national Cotality Chart Pack, local market activity continues to closely align with broader Regional Queensland trends.

Several factors continue to underpin confidence across the Toowoomba region.

Population Growth

Toowoomba continues attracting buyers relocating from Brisbane, interstate and regional Queensland seeking greater affordability, lifestyle and employment opportunities.

Infrastructure Investment

Major projects continue to support long-term confidence, including:

• New Toowoomba Hospital
• Inland Rail
• Toowoomba Bypass
• Ongoing industrial and logistics investment
• Defence, education and health sector expansion

These projects continue creating employment while increasing demand for housing.

Relative Affordability

Compared with Brisbane, Toowoomba continues offering exceptional value.

Many buyers are discovering they can purchase larger family homes, acreage properties and investment properties with stronger rental returns for considerably less than comparable Brisbane properties.

Supply Remains Constrained

While buyer activity has moderated nationally, quality homes in Toowoomba remain in relatively short supply.

Well-presented properties continue attracting multiple inspections, competitive offers and short days on market, particularly in sought-after suburbs including Middle Ridge, Rangeville, Highfields, Gowrie Junction, Kearneys Spring and East Toowoomba.

Properties requiring significant renovation or priced above market expectations are taking longer to sell than they were during the peak conditions of 2024 and 2025.

Buyers Have Become More Selective

The frantic buying conditions experienced over recent years have eased.

Today's buyers are completing more due diligence, negotiating harder, comparing multiple properties and placing greater emphasis on value.

This creates a healthier market where realistic pricing is increasingly important.

For sellers, presentation has become one of the strongest competitive advantages.

Auction Activity Is Slowing Nationally

One notable trend identified by Cotality is the decline in auction activity across Australia.

Auction listings have fallen from almost 45% of new listings in late 2025 to just over 30% by June 2026 as vendors increasingly favour private treaty sales amid softer buyer demand. Sales volumes have also eased as affordability and economic uncertainty weigh on confidence.

While auctions have never been the dominant sales method in Toowoomba, this trend reinforces the importance of selecting the right sales strategy for each property.

The Rental Market Remains Exceptionally Tight

Although rental growth has begun moderating nationally, vacancy rates across many regional Queensland centres remain historically low.

Strong population growth, limited new housing supply and ongoing investor caution continue supporting:

• Strong rental demand
• Attractive rental yields
• Long-term investment fundamentals

For investors, Toowoomba remains one of Queensland's most balanced markets, combining capital growth potential with solid rental returns.

Looking Ahead

The second half of 2026 is likely to see a more balanced property market.

Rather than the extraordinary price growth experienced during previous years, conditions are expected to favour:

• Sustainable price growth
• Realistic buyer expectations
• Improved purchasing opportunities
• Greater market stability

For Toowoomba, the long-term outlook remains positive.

Population growth, major infrastructure investment, employment opportunities and continued affordability should support demand well beyond the current market cycle.

While buyers now have slightly more choice and greater negotiating power than they did 12 months ago, quality homes in desirable locations continue to command strong competition when priced correctly.

Final Thoughts

The latest Cotality data highlights a clear shift in Australia's property market, with regional areas continuing to outperform many capital cities. Toowoomba remains well positioned to benefit from this trend, supported by affordability, infrastructure investment and a diverse local economy.

Whether you're buying, selling or investing, understanding local market conditions is more important than ever. A tailored strategy based on current demand, pricing and buyer behaviour can make a significant difference to your outcome.

Source: Cotality Monthly Housing Chart Pack – July 2026. National market statistics referenced throughout this report are drawn from the July 2026 publication.