Toowoomba $1m housing market booms as previously-affordable suburbs hit seven figures for first time

More homes are selling in Toowoomba $1m than at any point in modern history, as the city’s luxury property market booms. Some previously affordable suburbs are also joining the trend.

If you want to buy a nice home in one of Toowoomba’s inner-city suburbs, you should make sure you’ve got $1m set aside for it.

That’s according to leading property experts, who say a sharp spike in the number of residential properties worth upwards of $1m has been driven by domestic migration, greater equity and gentrification.

New statistics from RP Data has revealed 115 homes in 11 key Toowoomba suburbs have sold for seven figures in the past 12 months, a jump from 83 sales in the same areas for April to April 2021-22.

In fact, the $1m home market has exploded since the pandemic effectively ended in 2021, with nearly 200 properties clearing the mark over the past two years — more than the previous five years combined (142).

The data comes shortly after a Redwood property broke the Toowoomba home sale record, having been snapped up for $4.925m.

179A Geddes Street in South Toowoomba sold through Webster Cavanagh Marsden for $1.021m.

While areas like Redwood and East Toowoomba are considered luxury staples, suburbs that have previously never seen $1m sales are now also involved.

The leafy area of South Toowoomba saw its first two seven-figure home purchases this year, including a stunning five-bedroom house on Geddes Street that sold at auction for $1.021m through agency Webster Cavanagh Marsden.

The renovated home on 645 sqm, which sold for $343,000 in 2018 according to realestate.com.au, comes just a few months after 162 Perth Street sold for $1.035m through the same agency.

Geddes Street agent David Bennett said while sales worth upwards of $1m weren’t about to become the norm, quality homes near the centre of Toowoomba would command such a price as demand increased.

179A Geddes Street in South Toowoomba sold through Webster Cavanagh Marsden for $1.021m.

“There is a dramatic lack of listings, so good quality listings are selling what they’re worth,” he said.

“Toowoomba has always generated its own atmosphere and we’re almost in a cocoon-like state — we have a diverse background of people and industries.

“It’s becoming more commonplace, but the homes that are $1m-plus are tightly held.

“East Toowoomba has always been the preferred suburb and will continue for many generations, but there are only so many homes in East Toowoomba.

“The people who can secure a beautiful home in East Toowoomba don’t let them go, so the turnover is lower.”

Mr Bennett predicted suburbs like Newtown and Harristown would eventually follow South Toowoomba’s direction.

SOLD: This incredible six-bedroom house on Fletcher Street in Redwood, which includes amazing views of Table Top Mountain, has broken the sale record for a Toowoomba home at $4.925m through Ecology Property. Photos by SI Media.

Toowoomba zone chair of the Real Estate Institute of Queensland Daniel Burrett said several key factors had contributed to the city’s ballooning luxury property market, including buyers with a lot more equity to invest into properties.

“People in that price bracket are densely owner-occupied and most are holding properties while their kids are at school, and then they’ve sold them,” he said.

“Property owners have never had as much equity across the board.

“A lot of your sellers in East Toowoomba are capitalising on it and upgrading, from a $1m home to a $1.5m or $2m home.”

Daniel Burrett, zone chair of REIQ.

Mr Burrett said the boom occurring post-Covid was no coincidence, pointing to government stimulus during the pandemic and domestic migration from the coast as key indicators.

“What you’ve seen is a lot of businesses have done really well since Covid — governments have splashed the cash with the aim of people spending it,” he said.

“A lot of professionals and business owners (who own up-market homes) did really well, so all those factors combined with bigger equity mean you’re seeing more $1m homes.”

Mr Burrett also said Newtown and South Toowoomba’s entry into the seven-figure space was largely due to couples buying homes to flip them.

“A lot of Newtown and South Toowoomba has been gentrified — we used to sell Newtown properties for $250,000 and people are doing gorgeous extensions and they’re now commanding prices upwards of $750,000,” he said.

“Younger people are going in and purchasing and it changes the whole style of the area.”