Toowoomba property market ripe for buyers

Property prices in Toowoomba are falling as Queensland’s biggest inland city continues to recover from the end of the mining boom.

Recent data from the Domain Group showed Toowoomba’s median house price dropped by 3.3 per cent in the past quarter and by nearly 2 per cent over the past 12 months.

Geoffrey Jordan, principal at Century 21 Toowoomba, reported his property sales had dropped by nearly 50 per cent in that time. Meanwhile, rental vacancies that normally sat around 1 per cent, increased to 4 per cent.

“It’s a tough market in Toowoomba at the moment and prices have softened as a result of that,” he said.

“Last year we kind of had the perfect storm. Firstly Toowoomba, although not a mining town, did provide a lot of support services for mining companies. A lot of these disappeared overnight when the downturn hit and people consequently left the town.

“Secondly, a lot of new unit developments hit the market at the beginning of last year. And the other thing was the changes that APRA [the Australian Prudential Regulation Authority] made on their policies for lending.

“All of those things cooled off the local market literally overnight.”

LJ Hooker agent Alan Reilly said his volume of sales dropped by about 35 per cent this year.

“It’s definitely a buyer’s market. It’s not making a huge difference to prices but there is still the same amount of properties on the market and not enough buyers … days on the market have definitely increased,” he said.

But Mr Reilly remained positive about the outlook for Toowoomba, describing the current conditions as a “natural part of the property cycle”.

“To me, it feels like we’re treading water until the the infrastructure projects that have been promised are actually realised,” he said.

“Those projects are going to inject a lot of money into the local economy and create thousands of new jobs, which will have a flow-on effect into property.”

Work on the $35 million Toowoomba Integrated Milk Project, a new dairy facility with direct links to the lucrative Asian baby formula market, is scheduled to begin soon. With the newly built Wellcamp Airport, the multibillion-dollar Second Range Crossing and the proposed Inland Rail, Toowoomba is set to become one of the largest logistical centres in Australia.

Mr Jordan predicted the city would recover and then some from the mining downturn: “From a property point of view, we did what every other mining town did; we got ahead of ourselves.

“Now we’re recovering from that. And we will – Toowoomba’s long-term outlook with all its infrastructure plans is very promising. I like to say that the current market is just going through growing pains and indigestion.”

Toowoomba is located 125 kilometres west of Brisbane in the Darling Downs region. Some properties currently for sale in Toowoomba include:

6 Market Street, South Toowoomba

Renovated delight: The back view of 6 Market, South Toowoomba. Photo: Supplied

3 bed, 2 bath, 1 car
$429,000
Agent: Alan Reilly, LJ Hooker Toowoomba, 0427 655 767

This renovated colonial cottage within walking distance of the CBD features a formal lounge, separate rumpus room, private rear deck and a study. All three bedrooms have built-ins and the master has an en suite. As well as the meticulously preserved period features, the house has been updated with beautiful contemporary fittings and fixtures.

90 Anzac Avenue, Newtown

Cute cottage: 90 Anzac Avenue, Newtown. Photo: Supplied

2 bed, 1 bath, 1 car
$235,000
Agent: Geoffrey Jordan, Century 21 Toowoomba, 0438 120 376

Featuring high ceilings, tongue-and-groove walls and polished timber floors, this triple-gabled cottage has been recently updated. The eat-in kitchen and bathroom are both new and the block is fully fenced. The property is within walking distance of Clifford Gardens shopping centre.

59 Hume Street, North Toowoomba

Pretty potential: 59 Hume Street, North Toowoomba. Photo: Supplied

3 bed, 1 bath, 1 car
Early $300,000s
Agent: Andrew Duncombe, Explore Property, 0419 028 058

This gabled home is located in a sought-after inner-city pocket. The property has been updated but still offers potential for further renovation. It features three bedrooms plus a study, high ceilings and VJ walls. The house is set on a 741-square-metre block within walking distance of the CBD and Queens Park.