Postcode having an impact on local market
IN REAL estate, a postcode can make or break a suburb.
In the major metropolitan areas of Sydney, Melbourne and even Brisbane, that four digit code can attract buyers sight unseen or send them running for the hills.
But, it’s an anomaly that Tony Franke of Ray White Toowoomba Range & Highfields says can actually be misleading in the local market as our postcode covers the entire city and surrounds.
“The 4350 postcode is very misleading because it puts all of Toowoomba in a box,” he said.
“That doesn’t happen in the likes of Brisbane where each suburb is different and you can see quite distinct markets working at the same time.”
Mr Franke said he felt the need to address the current feeling that Toowoomba was oversupplied with stock and was a ‘buyer’s market’ - a misconception that he says can actually stagnate the area’s sales.
“We hear that Toowoomba is currently a ‘buyer’s market’ and that can have a negative effect on the city as it creates the perception that there’s bargains to be had everywhere,” he said.
“Understandably, sellers are chasing a reasonable price for their home, so they are reluctant to put it on the market because they feel they won’t get a decent return. Then it becomes a self-fulfilling prophecy because it slows turnover and sales can stall.”
Mr Franke said the “whole area was being stereotyped”.
“What people have to remember is Toowoomba is segmented into a number of different areas and each of these have different markets. So, when we hear the Toowoomba market is slowing (or gaining momentum) we need to understand that we have many markets within the one market,” he said.
“I agree that prices may be down on the western side of town because we have seen a lot of duplexes and the like pop up causing an oversupply in the market, but that appears to be straightening itself out.
“On the eastern side though, a lack of stock has had a definite impact and that’s why properties are continuing to be in such high demand. Certain areas are going particularly well.”
He also pointed to the growing Highfields area where he said he was experiencing good sales (or, at the very least, high demand).
“Highfields has an increased interest in half acre and acre properties,” he said. “They’re continuing to be very popular for families and buyers are crying out for them, but there is nothing for the buyers to see.”
“That’s the big issue facing Toowoomba - a lack of stock.
“Potential buyers are reluctant to sell their own homes and upgrade or move because there is nothing else to buy.
“This isn’t unique to the area either because currently there’s a lack of stock Queensland wide,” he said.
“That’s why I’m hoping anyone looking to buy or sell can judge each Toowoomba suburb on its own merits and not fall into the trap of believing that all of the 4350 area is a buyer’s market.”