Road, rail projects pump up property
Toowoomba house prices see stable growth to 2022
TOOWOOMBA house prices are expected to rise by about 2.5 per cent each year until 2022, according to research released by QBE Insurance.
The QBE Australian Housing Outlook 2019-2022 found this relatively stable growth follows three years of sporadic property pricing.
From 2012 to 2015 average house prices increased by 24 per cent but remained flat last year, gaining just 0.2 per cent.
QBE Lenders’ Mortgage Insurance CEO, Phil White, said infrastructure projects should help the Darling Downs’ economy and property market over the next few years.
“The Inland Rail project will be a boost to the logistics industry and the completion of the Second Range Crossing project will make Toowoomba more accessible,” he said.
“That should see growth pick up and our report sees average growth of 2.5 cent over the next three years.”
The forecast matches what Toowoomba real estate agents already see on the ground.
McGrath Estate Agents principal Toby Sandell said post-election political stability, low interest rates and relaxed lending rules combined with an influx of cash from big infrastructure projects to fuel interest in the Toowoomba property market.
The other big factor is high prices in capital and coastal cities.
“Price growth in those major cities makes Toowoomba look every attractive,” he said.
“In the past few months nearly 40 per cent of our buyers are from out of town.
“There coming from Brisbane, the Gold Coast, Sydney and out west.”
Most of these buyers are chasing a more relaxed lifestyle.
While the tree changers are welcome Mr Sandell said more infrastructure projects and a stronger job market would create more sustainable price growth.
“That 2.5 percent figure is very conservative and it would not take too much for Toowoomba to see double digit growth, but it all comes back to confidence and jobs,” he said.
“We need people to move here for jobs, as well as for the lifestyle.”
The report forecast prices to increase is every Australian capital city, with Brisbane standing out as a clear leader with a 20.3 per cent increase.