Toowoomba entry-level housing prices continue to grow into next year

Suburbs with houses valued below $700,000 are expected to continue on a trajectory of “unprecedented” growth since Covid as the market remains competitive for first-home owners. Here are the suburbs to watch:

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House prices have exploded by $100,000 across Toowoomba in the past year, as real estate agents expect values to continue to soar.

“Newtown is a suburb that is red hot right now,” LJ Hooker residential sales manager Matthew Keeley said.

“It has a wide array of property styles and is in close proximity to schools, hospitals, and shopping centres.

“It is a sought after location for both investors and owner-occupiers.”

Mr Keeley described the past four years since Covid as “unprecedented and possibly unsustainable” as Toowoomba, a historically conservative centre of real estate, was put on the map as a location to buy property.

“It has also been a very exciting time to be in the industry,” he said.

He predicted the market to continue to be competitive into next year, with demand still outstripping supply.

While 50 per cent of his buyers were still local he had received a marked increase from interstate investors.

If any suburb is slowing down in sales, it is not because of lack of sales, but simply lack of supply, he said.

“We’ve not taken any house to market we haven’t been able to sell this year,” Good Real Estate owner Brendan Mayles said.

He said while houses priced around the $1m margin have stabilised and are taking a little longer on the market than in past years, houses under the $700,000 mark were only continuing to grow.

Suburbs such as South Toowoomba, North Toowoomba and Newtown are all just moving “from strength to strength” as the market is continues to draw owner-occupiers, empty nesters and out-of-city investors.

He said he doesn’t expect this to let up in the next year.

Prices have continued to grow in the double digits and could even jump another $100,000 year on year, he said.

Mr Mayles said one house he sold in 2023 for $540,000 he put on the market again, and it attracted a sale price of $650,000.

For first-time buyers entering the market he stressed the importance of preparation, such as how fast you can get your finances turned around, to having a builder lined for building checks.

While traditionally, houses on the eastern side of Toowoomba were favoured, he said this is beginning to matter less, with houses in Wilsonton and Wilsonton Heights having their fastest turnover.

He expected properties priced below $700,000 to also continue to see incredible growth in the next year.