Average asking price for Newtown units up by 4.3% to $270,000

A spike in prices in the real estate market has seen units in a Toowoomba suburb project strong price growth statewide. Details here.

A Toowoomba region suburb has been named in the top 20 Queensland areas showing prospective price growth over the past three months.

Newtown, in Toowoomba’s west, has ranked second in the list below Brisbane’s Mango Hill, with a 4.3 per cent rise in the median asking price of a unit during that time frame.

Colliers Toowoomba Director Dominic Ryan said the change was due to the rising prices in the housing market.

“It’s driven by affordability, but … house prices are always higher than a unit price, and given that they’ve gone up, we are seeing buyers make that choice to go back to a higher density of a more affordable purchase being the unit,” he said.

“Given that it still gets them into the marketplace and its still affordable real estate, whether they’re going to live there or buying it for an investment.

“From an investment side, in most cases you are getting a cash positive return on your investment.”

According to the Well Home Loans Green Shoot Report released this month, unit prices in Newtown are averaging $270,000, opposed to $259,000.

The average days on market have decreased in the Newtown area, with units dropping from 94 days on market to 70 in three months.

“The days are marketed down well and truly, that's across all types of property,” Mr Ryan said.

“The house prices in Newtown … its essentially gone from a $300,000 average price from January last year to $360,000 at December 31st.

“If (purchasers) were hoping to get into the housing market at $300,000, the only option now if they haven’t been able to extend their borrowing capacity or save up additional funds is to go to that unit.”

According to the Domain December quarterly house report, Australian house prices experienced a rate of growth at 6.5 per cent, while national median unit prices also recorded a quarterly price growth at 1.9 per cent.

“The way people live and what they want is changing,” Mr Ryan said.

“Not everyone wants the maintenance involved with having a house. Not everyone is a gardener.

“They want to live within their four walls, have their space and make it their own.

“Even when you’re buying in that entry level house market at the $360,000, its fair to say you’re buying a piece of real estate or home that is going to need a considerable amount of work done to it.

“A unit at potentially $60,000 or $80,000 less … is (in most cases) well and truly serviceable and you don’t have to worry about updating bathrooms or kitchens or knowing your appliances have a matter of days left on them.”

Originally published as Average asking price for Newtown units up by 4.3% to $270,000