Toowoomba housing market set to decline as Sydney rises: May HTW Clock
Toowoomba’s housing market is starting to decline, but price growth is still apparent for current vendors.
According to Herron Todd White’s latest report, the property valuation firm says that in the past month Toowoomba’s housing market was beginning to decline and now it is set to continue declining.
Despite Toowoomba’s residential market being past it’s peak it can also be described as multi speed.
There is currently an oversupply of residential products, particularly units, that emerged during 2016.
As a result vacancy rates have increased while rental rates and investor interest has reduced.
“While properties in the sub $400,000 market have showed some signs of regression in value and rental rates, it appears that higher end property above $600,000 and even the $1 million plus price point have enjoyed a good level of interest with some strong sales being achieved,” the report stated.
Herron Todd White says that properties in the mid-range has also moved along steadily with a good level of interest from owner occupiers.
“Market performance appears to be particularly property type and location specific.
Higher priced established properties in the eastern suburbs appear to be enjoying strong interest from owner occupiers (third and fourth home buyers), while interest in the western suburbs, which largely appeals to first home buyers and investors, has softened,” the report commented.
Herron Todd White says that despite major projects occurring in the area, the residential values are anticipated to remain stable this year.
“The vacancy rate at slightly above 3% combined with recent interest rate increases for investors is likely to keep the lower end of the market subdued.
The market will be positively influenced through the creation of long term sustainable employment opportunities, which may be generated by the flow on effects of the transport infrastructure projects underway, in planning and completed (TSRC, Wellcamp Brisbane West Airport and Inland Rail).
Investment activity may be reignited if major lenders were able to focus the current tightening of lending criteria on the major capital city markets only, while supporting investment in regional markets,” the report stated.
Meanwhile Ipswich’s housing market is now currently beginning to recover.
Sydney now is steadily rising once again.
A four bedroom house at 61 Parkridge Drive in Withcott, Toowoomba (above) has been listed for over $519,000 having last traded for $110,000 in 2004.
A three bedroom home at 5 Kettle Street in Rockville (below), just outside of the Toowoomba CBD is under offer having been listed for $249,000.
A three bedroom house at 79 Herries Street, East Toowoomba (below) was sold last week for $529,000. It last sold for $300,000 in 2013.
A four bedroom home at 158 Tor Street, Rockville (below) was sold in last week for $345,000. It last traded for $295,000 in 2006.
Last month Property Observer reported that NSW regions were at the top of the property clock for houses.