Five years of strong growth

TOOWOOMBA has been a consistent regional performer over the past few years, however, its steady house and unit growth has begun to plateau and we are seeing a levelling off in demand.

Toowoomba’s median house price fell 1.1% this year, to $350,000, however it has still shown strong growth over the past five years, adding 21.1% to the median house price since 2011. As the Second Range Crossing continues apace and agricultural exports grow, workers will be attracted to the region and its likely demand for housing will grow somewhat in 2017.

The unit market has grown 23% over the past five years, to reach $307,450. Over the past 12 months the market has nudged downwards a fraction, just 0.2%.

The Ipswich market is earmarked as the growth corridor of the south-east corner, with a range of major residential developments breaking ground in 2016 and the city and surrounds benefiting from good infrastructure for commuters.

The annual median house price finished the year only fractionally higher than it began, growing 0.9% to $325,000.

A significant level of supply came to the market in Ipswich throughout 2016 and the demand has managed to keep pace.

It is likely that throughout 2017 demand will continue to grow steadily and this will see moderate upward pressure on prices.

The unit market has not had a strong year, falling 2.3% to an annual median price of $300,000. However, as with the house market, the REIQ is optimistic that as supply eases in 2017 the demand will push prices into positive growth territory.

The Warwick annual median house price of $247,500 grew 5.3% over the year and this puts it 3.1% higher than the median of $240,000 five years ago. There were not enough unit sales recorded in Warwick to draw meaningful conclusions.