Toowoomba near peak of market cycle, but prices not softening as gentrification takes hold: HTW
Toowoomba, Queensland’s largest inland city, is approaching the peak of the residential market.
But prices are not looking to soften as gentrification takes hold , according to HTW’s March property clock -- a simple broad brush means to indicate where property prices are and where they are going.
As at the beginning of 2016, Toowoomba’s median house price remains affordable at approximately $370,000 and despite a noticeably softening market sentiment, sale prices have not yet shown signs of decline.
However, it is apparent that the peak of the residential market has passed with agents reporting reduced investor enquiry.
With current property climate in mind, investor interest cooling and upgrader enthusiasm easing, home owners are turning to regeneration and renovation.
The key areas where this gentrification is most obviously taking hold is in the affordable suburbs of South Toowoomba, North Toowoomba, Mount Lofty and Newtown.
The traditionally less sought after suburbs of Rockville and Harlaxton are slowly transitioning to gentrification hot spots due to their affordability.
At a higher price point, the style of dwelling common in East Toowoomba and scattered throughout established parts of Toowoomba, being older style early 1900s cottages, lend themselves to current renovation trends and modern extensions.
Not surprisingly, due to the steady trend of rejuvenation of this type of property, the median price in East Toowoomba is $445,000, significantly above that of the broader Toowoomba area.
As for the medium to long term, while the peak of the Toowoomba residential property market has passed, these gentrifying areas look set to maintain current levels of demand and value, however as is expected across the entire Toowoomba region, some slowing in sales activity may occur.
As an example of the property market activity, Property Observer found a duplex at 1 & 2/126 Perth Street, South Toowoomba, Qld 4350 (above) was recently sold for $480,000 through Colliers International.