Toowoomba Property Market Update – August 2025

The Toowoomba property market continued to demonstrate resilience in August, supported by strong buyer demand, limited housing supply, and favourable interest rate movements. While national growth patterns have moderated, regional Queensland – including the Toowoomba region – remains an attractive market for both owner-occupiers and investors.

Price Growth and Market Trends

Over the past 12 months to July 2025, Regional Queensland dwelling values rose by 5.6%, outpacing several other regional markets in Australia. On a quarterly basis, values in regional QLD recorded a 3.0% lift, showing steady momentum despite broader economic uncertainty.

The ongoing appeal of Toowoomba is driven by:

• Relative affordability compared to Brisbane and coastal markets

• Continued population inflows from metropolitan areas

• Demand for larger homes with land, which has been a post-pandemic lifestyle shift

Sales Activity

Sales volumes across regional Queensland were up 3.0% year-on-year, even as many other areas saw softer activity. This indicates that buyer demand in Toowoomba remains solid, helped by the recent August RBA rate cut to 3.60% and expectations of further easing before year-end.

Median selling times for properties in regional Queensland currently sit in the mid- to high-30-day range, with competitive, well-priced properties often selling more quickly.

Listings and Supply Pressures

Housing supply remains tight. In July, new listings in regional Queensland were down 11.9% compared to the same period last year, and total listings were 15.5% lower than the five-year average. This scarcity continues to put upward pressure on prices and rental rates.

For sellers, low stock levels are translating into strong competition among buyers. For buyers, particularly first home purchasers, the tight supply environment requires quick decision-making and a clear financing plan.

Rental Market Update

The rental market in Toowoomba remains under significant pressure. Rents in regional Queensland increased 5.6% over the past 12 months, well above the national average of 3.7%.

Vacancy rates are extremely low, reflecting limited rental availability and population growth. While gross rental yields in regional QLD remain attractive at 4.4%, they have eased slightly from earlier in the year due to rapid price growth.

Financing and Interest Rates

The August RBA cut, combined with another potential cut in November, is expected to boost borrowing capacity and improve buyer confidence. Investor activity remains elevated in Queensland, making up 38.3% of all new loan values, well above historical averages.

First home buyer finance in QLD rose 5.7% in value over the quarter, suggesting renewed participation in the market.

Outlook for the Rest of 2025

The outlook for Toowoomba remains positive heading into spring, traditionally one of the busiest property seasons.

• Price growth is expected to remain steady, supported by low stock levels and improved affordability due to rate cuts.

• Rental demand will likely stay high, with limited new supply coming online in the short term.

• Investor interest in the region is set to remain strong given the healthy rental yields and growth prospects.

Key Takeaways

• Regional QLD dwelling values: +5.6% annually

• Sales volumes: +3.0% year-on-year

• New listings: -11.9% year-on-year

• Regional QLD rental growth: +5.6% annually

• Investor share of lending in QLD: 38.3%