Investing in property in Toowoomba
Toowoomba is situated in the Darling Downs region in southern Queensland, only 90 minutes from Brisbane. This urban locality is Queensland’s largest inland city and is visited by more than 3 million tourists every year.
The city is currently going through a growth spurt, with an expected population growth of more than 40% by 2031. This, coupled with strong economic growth and investment in the region, makes Toowoomba and Warwick the perfect places for investors or families to call home.
Toowoomba Property Investment Opportunities at a Glance
Property Market Highlights
- Lowest vacancy rates in 17 years (0.3%)
- Big population influx from the Southern states and more expensive markets in Brisbane and the Gold Coast.
- House rental yields are higher than Brisbane Metro (Q1, 2022), with a 13.4% growth compared to the previous year.
Infrastructure & Development Highlights
- $13.2 billion in planned infrastructure and major projects, both public and private.
- Wellcamp Airport is a pioneering international airport and a pillar of future growth in the Toowoomba region recently completed.
- New Baillie Henderson Hospital, opening in 2027, with $1.3 billion in government funding for the project – 118 beds added to accommodate the rapidly growing population.
- Inland rail line, connecting Brisbane to Melbourne via regional NSW and QLD. Construction on the line is due for completion in 2026 and will see 650 new jobs being created.
- A fast rail line between Toowoomba and Brisbane in anticipation of the 2032 Olympic Games
Economic Growth Highlights
- Seventh most diverse economy in Queensland
- Supporting approximately 84,614 jobs
- The Inland Rail will connect producers, farmers, and businesses to national and international markets, and pave way for steady economic growth.
- The unemployment rate was 4.6 in January 2022
Toowoomba Location & Lifestyle
Although within the Darling Downs farming region, Toowoomba is not your typical farming town. From a lifestyle perspective, Toowoomba offers the perfect balance between a small city lifestyle and country living. With a strong economy, affordable housing, and abundant schools, public parks, and playgrounds, there is no wonder the number of families moving to the region grows every year. People have come to the Toowoomba and Warwick regions seeking affordability, lifestyle, and space, and have found it in spades.
Toowoomba Property Market
The local property market has flourished in recent years, with the vacancy rate being the lowest it has been in 17 years at 0.3%. This has been driven by a population influx from the Southern states and people being priced out of the more expensive markets in Brisbane and the Gold Coast. The median house price was recorded at $558,928 as of July 2022 and house rental yields were 4.6% in the same quarter. This was higher than Brisbane Metro, with a 13.4% growth compared to the previous year. The figures suggest a ripe market for investors to consider, more affordable compared to Brisbane.
Toowoomba Infrastructure & Development
There is $13.2 billion in planned infrastructure and major projects, both public and private, that will drive economic development and future productivity while improving the region’s accessibility and amenity for future generations
- Wellcamp Airport: The pioneering international airport built by the Wagner Corporation is a pillar of future growth and planning in the Toowoomba region.
- New Hospital: Toowoomba is set to be home to a new hospital opening in 2027, with $1.3 billion in government funding for the project. The new facility will be built on the Baillie Henderson site in Toowoomba and will add 118 beds to the local system to cater to the rapidly growing population. The new hospital is set to provide vital services and attract a mass of new residents.
- New rail lines: Toowoomba to be Queensland’s main hub for the 1700km inland rail line, connecting Brisbane to Melbourne via regional NSW and QLD. Construction on the line is due for completion in 2026 and will see 650 new jobs being created.
A fast rail line between Toowoomba and Brisbane has also been floated by State leaders in anticipation of the 2032 Olympic Games. The rail line would open the Darling Downs up to the Greater Brisbane economy and cement itself as the new Bendigo, Ballarat, or Western Sydney.
Toowoomba Economy
Toowoomba’s economy is the seventh most diverse economy in Queensland, outlining its resilience and ability to moderate peaks and troughs. The region generated $11.7 billion in Gross Regional Product (GRP) in 2020/21, supporting approximately 84,614 jobs ( Toowoomba Region Economic Profile 2022). The city’s current focus on major commercial projects will stimulate economic growth and create employment opportunities in Toowoomba for many years to come. This will have a flow-on effect on the real estate market, which will experience a higher demand for housing stock.
The ability of the “Inland Rail” project to connect producers, farmers, and businesses to national and international markets, paves the way for steady economic growth and diversity in the Toowoomba Region.
Invest in Toowoomba
The best investments in the Toowoomba and Warwick regions are high-yielding, lower specification, 4-bedroom homes, that appease the record low vacancy rate. We achieve our “High-Yield Specification” by reducing the level of standard inclusions. The inclusions we pare back on include the use of laminate bench tops instead of stone, finishing the home with one paint colour, investment tapware from Reece, and hard-wearing vinyl flooring in the main living area.
To ensure your journey to consistent cash flow and long-term capital growth is seamless and stress-free, we build the house ready for a tenant to move in. This includes fencing & basic landscaping, so you don’t have to lift a finger. We will also provide you with an up-to-date rental appraisal and a local property manager to find you a tenant immediately.