Infrastructure investment pipeline worth $13b to put pressure on Toowoomba housing market, according to new property report

Toowoomba’s status as a national infrastructure investment hot spot will likely put further pressure on an already tight housing market, according to the latest report by a top property analyst.

A new report has highlighted the major infrastructure projects in the pipeline for Toowoomba, including Inland Rail.

Toowoomba’s $13 billion pipeline of upcoming government and private infrastructure investment is likely to increase pressure on the city’s housing market, according to the new report.

Ryder Research Resources’ Terry Ryder has listed the Garden City among the top 10 locations across Australia that will see an infrastructure-led property boom, alongside areas like the Sunshine Coast, Hunter Region, Port Augusta and Cherrybrook.

The report explored Toowoomba’s consistent 10-year growth, existing infrastructure expenditure like on Wellcamp Aiport and the Toowoomba Bypass, projects listed in the pipeline, the existing growth in property sale prices and previously reported land supply issues across the city.

Mr Ryder said Toowoomba was clearly a region to watch based on the sheer amount of investment already slated to occur across the next five years.

“We felt Toowoomba was one of the easy choices (for the list),” he said.

“It’s really clear that Australia is going to have an infrastructure-led economic recovery to haul us out of this recession (and) we believe there’s nothing that pumps up markets more than major spending in infrastructure.

Ryder Research Resources managing director Terry Ryder says an influx in infrastructure development across the Toowoomba region will put pressure on its housing market.

“The airport is incredibly important, and it’s a gift that’s going to keep on giving (because) it’s a facility that will keep delivering other projects.

“The one that is coming up that is really going to put Toowoomba on the national map is the Inland Rail.

“This is the biggest infrastructure project in the country right now, and Toowoomba is the pivotal point in Queensland for it.”

Along with the Inland Rail, Mr Ryder’s report said the new Toowoomba Hospital, milk factory, both medical cannabis farm, Wagner Corporation’s sports entertainment precinct, FKG Groups’ gas-solar project at Wellcamp and the Interlink SQ freight hub represented an exciting future for the region.

“It’s only when people put them on the page that you realise how big the list is,” he said.

“You’re talking about $12-15 billion worth of potential projects — it’s a massive impact for a regional city.”

But Mr Ryder said the investment boom was likely to further tighten Toowoomba’s already stretched housing market, for both homebuyers and renters.

“The Toowoomba market has been in the doldrums for years, one of the problems it has had is there was a lot of new stuff but not many buyers,” he said.

“We now have the opposite where vacancies are incredibly low — the postcode of Toowoomba has 0.5 per cent vacancy rate and that puts upward pressure on rentals and prices.

“The pattern is a number of suburbs are showing some level of growth.

“The figures are starting to show the prices improving and if you talk to locals, they’ll tell you the market is starting to heat up.

“There’s an opportunity for individual people to buy a property and make it available for rent – you’re going to get a good rent for it.”

To purchase the full report, head to the website.

Originally published as Infrastructure investment pipeline worth $13b to put pressure on Toowoomba housing market, according to new property report