PropTrack data suggests Toowoomba real estate market prices in 2028

PropTrack data suggests Toowoomba real estate market prices in 2028

There is a possibility that the median house price in four Toowoomba suburbs could exceed $1 million within the next five years, according to new data.

REA Group’s PropTrack has revealed how the local property sector may look by 2028 based on its analysis.

Housing affordability remains a persistent problem in Australia’s real estate market.

In recent years, this trend has spread to regional areas such as Toowoomba, where the median house price in wealthy suburbs such as East Toowoomba ($1.388m), Highfields ($1.11m), Middle Ridge ($1.141m) and Kleinton ($1.003m) could exceed seven figures within five years.

A further two areas, Westbrook ($952,000) and Mount Lofty ($956,000), may also be closing in on the figure.

According to PropTrack data, North Toowoomba might have the lowest median price by 2028, at $513,000.

Toowoomba’s growth has been “unusually” strong since the start of Covid-19, according to PropTrack senior economist Angus Moore.

“Over the past five years, home prices in the Toowoomba region have increased by just over 52 percent, compared to 58 percent for regional Queensland overall,” he added.

Although the growth has been a little slower than some other regional Queensland areas, the broader point is that all of these areas have experienced very strong growth.

During the pandemic, we saw very strong demand for homes in southeast Queensland, driving prices up very rapidly.”

It is Toowoomba’s continued growth over the past year that sets it apart from other areas at a time when interest rates are on the rise.

According to him, “we are still seeing strong demand support prices.”.

In the past year, Toowoomba’s prices have risen a bit over 8 percent, which is much stronger than what we have seen in much of the country, where prices have fallen as interest rates have increased.”

Despite stating that the 2028 forecast could be realized, Mr Moore suggested that some heat would eventually leave the market.

“The rapid pace of growth in the past five years – and what it would mean for median prices if it were to occur again – demonstrates how unusually strong the past five years have been,” he stated.

In regional Queensland, including Toowoomba, prices have increased by more than 50 percent since the pandemic began.

To provide some context, prices nationwide increased by 23 percent in 2021 alone.

In 140 years, since 1880, that is the third fastest year of price growth.

This is clearly an unusual growth rate, and we are unlikely to see it again in the near future.”