The month in review: Toowoomba
By Herron Todd White
July, 2010
In Toowoomba the residential property market share
above $500,000 is thinly traded where we had witnessed
some softening of values in 2008/09, most likely as a result
of the ‘GFC’ and sellers becoming over anxious. However
even though we saw values and volumes recovering this
past six months property values are considered to have
levelled off with a slight increase in selling periods and an
overall decrease in sales volumes.
Agents across the board report that both residential sales
and rental activity has been reduced this past quarter
which could be attributed to;
• Lack of buyer confidence from consecutive rate rises.
• Finance availability.
• Mortgagee stress.
• Stock availability.
All in all, generally values and yields are considered
to be holding. This is accepted to be the result of low
unemployment percentages and consumer confidence,
work availability in our agricultural, mining, energy,
construction and commerce sectors.
In answering the question “Where would I put $500,000
in the short, medium and long term?” We would suggest
property primarily in the eastern suburbs which has
been a safe bet in times of uncertainty. The reason being
is that property in the eastern suburbs is still tightly
held and short term gain may be achieved from an
extension to the existing improvement, such as turning
a smaller three-bedroom, one-bathroom home into a
larger four-bedroom, two- bathroom home. This type
of development needs careful consideration due to the
high costs associated with extensions and an experienced
valuer and architect should be engaged to establish an
end value if short term profit is the goal.
In addition generally vacant land availability in
Toowoomba is limited with values increasing as a result
of low availability. As a guide the following price ranges
could be expected;
| Glenvale |
$125,000 - $150,000 |
| Middle Ridge |
$200,000 - $250,000 |
| Highfields |
$140,000 - $165,000 |
| Westbrook |
$120,000 - $140,000 |
Many developers are currently quite negative about
the rising costs associated with developing land.
Currently there appears to be a limited amount of land
being developed which may result in rising values.
Subsequently we are seeing many dormant subdivisions
starting to generate momentum which again is the result
of limited land availability.
So our money this next 12 months is to buy land if you
can find it. The best type is considered infill lots rather
than new development. However careful consideration
needs to be given to its cost and the overall end value for
any proposed dwellings.
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