Inner-city living boom
INNER-CITY living could boom in the Garden City if the upturn in the housing market continues.
That’s the view of a city real estate agent, who is backing the development of a new five-storey unit block in the CBD.
It’s one of several residential projects in the city centre.
“I do think things have changed – the market in Toowoomba has shifted since Covid,” Colliers International Toowoomba managing director Dan Dwan said.
“A combination of rental pressure, vacancy rates are extremely low (and it’s) greatly driven by the fact we’re seeing long-term investment and the pool of rental properties is diminishing.”
Construction on the new Mylne Street units is set to begin soon.
A SHARP increase in prices for detached homes close to the Toowoomba CBD will make a swath of new inner-city unit developments more viable for buyers, according to a leading real estate agent.
Colliers International Toowoomba managing director Dan Dwan welcomed news developers Barry and Mitchell Bernoth were about to start on a new five-storey unit block on Mylne Street in the CBD.
It is just one of several city centre residential projects, with a neighbouring development also on Mylne Street promising to create several units and townhouses, along with a restaurant a cafe.
The Bernoths are also progressing their parking and residential tower on Bell Street, while Broc Winten was approved in 2018 for 14 units on Royal Street.
Mr Dwan, who has previously expressed hesitance at the market’s appetite for innercity due to Toowoomba’s relatively affordable housing, said this week the tide was changing.
“I do think things have changed – the market in Toowoomba has shifted since Covid,” he said.
“A combination of rental pressure, vacancy rates are extremely low (and it’s) greatly driven by the fact we’re seeing long-term investment and the pool of rental properties is diminishing.
“Toowoomba has seen escalation of property prices over the past 12-24 months, to the point where the values of inner-city living opportunities are becoming more attainable.
“There’s a greater gap between what stacks up as an inner-city offering and a fringe-CBD offering.”
Mr Dwan’s comments are backed by market analysis by PRD Real Estate, which said the median price of housing in Toowoomba had climbed by more than 14 per cent since last year.
Moreover, sales in the premium unit market (above $400,000) made up nearly a third of all unit transfers across the past 12 months.
Mr Dwan said the conditions were good signs for developers like the Bernoths.
“The feeling around a shortage of supply, both in the rental and owner-occupier market, will push inner-city living to the forefront,” he said.
“The Mylne Street development will set some new levels to inner-city living — it will appeal to the market given its size and location.