Toowoomba residential property is cooling: Herron Todd White

The number of properties listed for sale in Toowoomba is rising and with slowing sales activity, there may need to be some adjustment in asking prices to attract buyers, according to the valuation firm, Herron Todd White.

It anticipates the key drivers of the Toowoomba market moving forward will continue to be local owner-occupiers and local investors. 

The valuation firm's August update says Toowoomba, the major regional centre servicing Queensland agricultural sectors, had become a target for interstate investors who found the affordability and position as the gateway to the Surat Basin attractive.

"During this period and in conjunction with development of the privately funded Brisbane West Wellcamp Airport, sales activity increased with the strong influence of interstate investors driving up values, particularly in the sub-$500,000 price bracket.

"To capitalise on this demand, developers saw opportunity to develop units and townhouses which are popular amongst the investor market.

"As the market now cools, there is an emerging oversupply of new or modern units, particularly across new estates in Glenvale.

"The rental vacancy trend has stabilised, although this may be in line with seasonal movements.

"Sitting at 3.5 percent, the vacancy rate had crept up to as high as 4 percent during late 2015 and early 2016."

This follows many years of consistently low vacancies around the 1.4 percent to 1.8 percent.

HTW said the dwelling sales activity has slowed in 2016 and this follows slowing activity since the recent peak in 2013.

The development of the Toowoomba second Range Crossing Road and new industries such as a large milk powder processing facility supplying directly to China may provide some short to medium term growth opportunities for the region. 

Toowoomba has not been subject to volatile property market movements, according to the valuation firm, Herron Todd White, given the relatively stable workforce underpinned by large government employers including numerous schools, the University of Southern Queensland, three large hospitals and the Oakey and Cabarlah Army bases.

The coal seam gas and energy resources boom between 2010 and 2014 in the Surat Basin to the west created significant hype in the Toowoomba region.

Estate agent John McGrath recently described Toowoomba as a "hotspot."