Queensland's Toowoomba property market set to soften, but sub-$500,000 still scores: HTW
The market in Queensland's Toowoomba looks set to continue to soften into the second half of 2016, but the sub-$500,000 price bracket remains the most active as it attracts investors, owner-occupiers and renovators alike, say valuation firm Herron Todd White in its residential property report for July 2016. The report focuses on property investing in the $500,000 range.
Toowoomba’s median house price sits marginally below that of the previous year at $363,000 with reduced sale volumes also recorded. Of all dwelling sales recorded in 2016 to date, approximately 41 percent were between $300,000 and $400,000, while sales over $500,000 only constituted approximately 18 percent. Therefore despite reduced volumes, the sub $500,000 price bracket which comfortably encompasses the median price remains significantly more active than higher price points.
At the $500,000 price point there is a broad range of properties available. The sales below are examples of contrasting property types that have recently sold.
The property below sold for $499,000 in February (CoreLogic) and is a three-bedroom, one-bathroom, renovated colonial dwelling in East Toowoomba.
In contrast, a Middle Ridge, modern, brick, three-bedroom, two-bathroom property sold for $505,000 in February, according to CoreLogic.
As for rental demand, Toowoomba’s vacancy rate is at 3.7 percent, which is almost double that of previous years and accordingly, there has been a parallel weakening of rental values. Despite this, sub $400 per week rentals have continued to see a relatively stable level of enquiry.
"Overall, despite the softening market conditions there is likely to be continued demand across the board for properties for sale below $500,000 and it is predicted that the owner-occupier dominated suburbs such as East Toowoomba, Middle Ridge, Kearneys Spring, South Toowoomba, Mount Lofty, Darling Heights and Rangeville will continue to record a more stable growth pattern than new investor driven developments across Toowoomba’s western suburbs," the HTW report concludes.
