Toowoomba rental market desperate for stock plays catch up with nation

As residents struggle to secure accommodation in a low vacancy rate zone, a real estate agent has said the spike in prices is here to stay as the region plays catch up. Details here.

The spike in rental prices and home sales is expected to stay as the region plays catch up with the nation, a real estate broker says.

RE/MAX Success Toowoomba general manager Daniel Burrett said the slow increase in rental prices meant residents felt the sharp pinch of increases over the past 12 months.

“The rental prices in Toowoomba have been very stagnant for a long time,” he said.

“This is the sharpest rental increase we have seen in a given period, but we have had many years where we recommend for landlords to keep it the same.

“We’re in a catch up, pressure cooker period, in line where they all should have been.

“It’s not going to change unfortunately.”

According to realestate.com.au data, Toowoomba City house rentals have seen a 14.3 per cent growth over the past 12 months, while unit rental prices have gone up 14 per cent.

The average house rental price in Toowoomba City is $400, while the average unit price is $285 respectively.

However, house rental prices in Mount Lofty have grown 15.8 per cent, while unit rental prices have risen 10.1 per cent.

The average rental price for a house is $440, while a unit is $300.

“Its all compounding the issue at the moment, its not real estate specific, its cost of living all around. That's what rent is,” Mr Burrett said.

“At the end of the day landlords can’t be benevolent because they’re also paying mortgages off … they’re also experiencing the cost of holding properties.

“It’s hurtful to families out there but across the years, it’s needed to balance out (with rising costs of living).”

A new study has unveiled Toowoomba renters are feeling the pinch of price increases, with 43 per cent of household income reportedly allocated for rent.

The Toowoomba region currently has a vacancy rate of 0.3 per cent.

“People used to be quite suburb specific, but they don’t have the luxury anymore,” Mr Burrett said.

“Supply has decreased dramatically, and people are selling investment properties, or removing rental properties (from the market) so their family or friends can move in.”

Mr Burrett said it was not realistic anymore for residents to own investment properties as the cost of living increases.

“It’s a lot more difficult,” he said.

“The regulations and compliances that is put onto landlords are making it not as exciting to have them at the moment.

“A lot of investors are tapping out … it’s just not worth it anymore, so they sell and that property leaves the rental pool.”

According to realestate.com.au, the most expensive suburbs to rent a house in the Toowoomba region is Highfields and Middle Ridge, at an average of $500.

The most expensive suburb to rent a unit in the region is Middle Ridge at $410.