Property Investment Toowoomba
Everyone loves a property hotspot. But it’s fair to say that the best time to invest is before things really start heating up. And that’s exactly where Toowoomba is right now: On the cusp of greatness. Australia’s largest inland non-capital city is set to take off. If you’re considering property investment in Toowoomba, you need to get your foot in the door now, before the market becomes red-hot. So what is it about Toowoomba that makes it great choice in property investment?
Toowoomba – Location, location, location!
Toowoomba is perched on the top of the Great Dividing Range, approximately 125km west of Brisbane. At 700m above sea level, it’s a picturesque and bustling major regional centre. But that’s not all. You have to recognise that its position means that it’s also the main gateway to the west. It connects the Darling Downs’ booming agricultural sector and rich mineral resources of the Surat Basin to its west, with Brisbane. In doing so, it’s a vital link between primary producers and their domestic and overseas markets.
Toowoomba’s also proximate to the Lockyer Valley region and provides essential governmental, administrative and other services across a huge catchment area. This only serves to further cement Toowoomba’s position as a rising star in the property investment market.
Toowoomba has been consistently named in the top 10 fastest growing local government areas in Queensland. As at 30 June 2014, Toowoomba’s estimated resident population stood at 162,970, with the greatest proportion of residents being in the 25-44 age with a median age of 37.5 years (source: Queensland Government Statistician’s Office, Queensland Regional Profiles and Australian Bureau of Statistics Labour Force Survey). Despite its population growth, Toowoomba continues to enjoy low rates of unemployment: just 3.3% as at September 2015, compared to much higher levels of unemployment across the rest of the state. In fact, Toowoomba enjoys one of the lowest unemployment rates in Queensland (source: Australian Government – Department of Employment). That’s great news if you’re considering a Toowoomba investment property.
According to the QLD Government Statistician’s Office, the median sale price for a residential dwelling in Toowoomba for the 12 months period ending 31 March 2015 was $342,000. That’s certainly food for thought when you consider that the Queensland median sale price was $415,000 over the same period. (source: Department of Natural Resources and Mines, Office of the Valuer-General, Property Sales).
Newer dwellings in Toowoomba were slightly more expensive, with median sale price of $370,000, but still well under the state median. The upside to a new dwelling is that you won’t have the same maintenance costs as you would with an older, established property. You can’t ignore the fact that Toowoomba’s affordability and its low vacancy rates are contributing to a warming in the property market.
Major infrastructure projects – How they’re affecting property investment in Toowoomba
There’s a flurry of activity in Toowoomba and its surrounds. That’s an excellent sign of great things to come. Toowoomba’s role as a conduit to Brisbane has been recognised with a massive injection of funding at both state and commonwealth level. This funding has been applied to finance key infrastructure projects, which will continue to create jobs in the area convincing people – and businesses – to make the move west from Brisbane. If you choose an investment property in Toowoomba now, you’ll be well placed to capitalise on these projects.
The major infrastructure projects directly benefiting property development in Toowoomba are:
- The $10.7 billion Inland Rail project due to be completed in 2025;
- The $1.6 billion Toowoomba Second Range Crossing project; and
- The Brisbane West Wellcamp Airport.
The Inland Rail project
It’s expected that the Inland Rail project will pay dividends for property investors in Toowoomba. The project envisages a 1700 km rail-freight corridor connecting Melbourne in Victoria to Brisbane, Queensland via New South Wales. Some of it will utilise or upgrade existing tracks; other parts will require extensive construction works and will generate more employment in the area.
Once completed, it will also connect south-east Queensland with other parts of the country, including Adelaide and Perth. It’s expected that over the next 35 years, Inland Rail will effectively double the current freight capacity between Brisbane and Melbourne and directly create hundreds of jobs. Best of all, the rail line will run through Toowoomba, aided by tunnels. It’s widely anticipated that the Inland Rail project will deliver a multitude of benefits to Toowoomba.
You can expect that this project will result in the relocation of many transport and logistics companies to the Toowoomba area so that they can capitalise on the rail freight link. That in turn is expected to stimulate the local economy and increase employment and prosperity in Toowoomba.
Learn more about the Inland Rail Project and how it is expected to affect Toowoomba here
The Toowoomba Second Range Crossing project
The Toowoomba Second Range Crossing project will deliver a 41km bypass road that will skirt to the north of Toowoomba, effectively linking Athol and Charlton to the west and north-west of Toowoomba to the New England Highway, Lockyer Valley and ultimately, Brisbane. It will have the effect of reducing congestion, noise and vehicle emissions in the Toowoomba CBD by providing an alternative route to commercial vehicles. At the same time, it will also generate significant employment during the crucial construction phase. Construction is due to start later in 2015. Find out more about the project here.
The Brisbane West Wellcamp Airport
The Brisbane West Wellcamp Airport is another major infrastructure project that is expected to have a continued positive effect on the Toowoomba property investment market. It’s located roughly 17km from Toowoomba’s CBD. Already operational, it’s having a dramatic effect on improving tourism, transport and freight and is a vital air link between Brisbane, Toowoomba, the Darling Downs region and the Surat Basin.
This massive injection of funding into infrastructure can only be a good thing when it comes to your Toowoomba investment property. Together they’ll:
- stimulate the local economy;
- create additional employment opportunities; and
- act as an incentive for people to move to the area from other parts of the state and beyond.
So, is Toowoomba already seeing an influx of employers to the area? If the large spike in non-residential building approvals that occurred between March and June 2015 (the highest point in 12 years) is anything to go by, then yes (source: Australian Bureau of Statistics, Building Approvals Australia). You can expect that demand for suitable housing in Toowoomba will continue to rise. You need to get your foot in the door of the Toowoomba investment property market now.
Toowoomba as a great lifestyle choice
Infrastructure, employment and population factors shouldn’t be your only consideration if you’re looking to invest in the Toowoomba property market. Toowoomba is a great lifestyle destination, too, offering all of the benefits associated with being a regional centre without the drawbacks of city living. The Toowoomba Regional Council local government area boasts:
- 112 early childhood education and care services
- 90 schools
- 4 tertiary education campuses including the University of Southern Queensland
- 8 hospitals
- 45 aged care services
- The state-of-the-art Toowoomba City Library, and
- Plans for a reinvigorated sports and recreational precinct at the Highfields sport and recreational park.
(Source: Queensland Regional Profiles – Resident Profile (Toowoomba). They’re not only good indicators of liveability. If you do your research properly, you’ll also find that they help point to where you should be looking for your Toowoomba investment property too.
Toowoomba investment property opportunities and land releases
Here’s just a few of the property investment opportunities that you may be able to take advantage of in Toowoomba:
The Toowoomba Railway Parklands Priority Development Area
Perhaps the most exciting of all proposed developments to be announced is the Toowoomba Railway Parklands Priority Development Area. Encompassing roughly 50 hectares of land just to the north of the Toowoomba CBD, much of this area will be opened up to new housing developments including medium rise and higher density housing. All up, you can expect an additional 1000-1200 new apartments or dwellings to be constructed in this area.
It’s also expected to become a hive of activity as it will include commercial, retail and entertainment venues and recreational facilities too. It signals not only a rejuvenation of an older precinct of Toowoomba, but the creation of new styles of accommodation that haven’t been a viable option for tenants in Toowoomba before. And new is exciting! You can find out more about the plans for this area and your property investment options here
Other options for property investment in Toowoomba
You’re also spoiled for choice when it comes to new land releases in Toowoomba. These are just a few of your options:
- The Kooringa Valley Estate
- The Views Sanctuary Rise
- Glenview Estate
- Highfields North Estate
- Sorrento Estate
You should also look for developments in Glenvale, Mt Kynoch, Kearney’s Springs, Centenerary Heights and Cambooya.
The Toowoomba Regional Planning Scheme
You can also get a better idea of plans and projections for the Toowoomba area by familiarising yourself with the Toowoomba Regional Planning Scheme. You can download maps for the Planning Scheme here. The council can also assist if you want to access specific data about the area that might assist you to make a decision about where you should look for your Toowoomba investment property.
Where to find more information about property investment in Toowoomba
Keen to dip your toes in the exciting waters of property investment in Toowoomba? You need to research your options thoroughly. At Tandem 54 we can take the stress and uncertainty out of looking for an investment property in this area. We know the Toowoomba investment property market better than anyone else. Call us today on (07) 3861 9853.