Economist highlights Toowoomba Region’s positive growth trends

Significant trends covering housing approvals across the Toowoomba Region that were presented at a recent UDIA Toowoomba branch function have reinforced other positive updates about the Region’s economy.

Toowoomba Region Mayor Paul Antonio said the presentation by economist Malcolm Aikman, a director of strategic research firm Innovociti, highlighted ongoing good news for the Region.

“Mr Aikman’s overview underlined how impressed he was with the dynamism of the Toowoomba Region economy,” Mayor Antonio, who also is the chair of TRC’s Economic Development Committee, said.

“The presentation also showed that there is a lot to be optimistic about in terms of ongoing positive trends.

“In respect to the Region’s housing situation, Mr Aikman said there was an unhealthy ‘skew’ towards the construction of owner occupancy dwellings.

“The current ratio appears to indicate that more than 90% of development under construction is for detached dwellings.

“Fewer than 10% of the other forms of housing, such as duplexes, medium density and medium high rise, (which tend to provide for the rental market along with ‘Mum and Dad’ investors who buy older detached dwells for rental investment purposes), are coming to the market.

“Mr Aikman clearly indicated that these trends are not unique to Toowoomba.

“This is being replicated across Australia, primarily as a result of the federal government’s housing stimulus financial packages.

“He also commented on the move from a supply-dominated market to one being led by strong demand, which can be largely attributed to federal government incentive policies and record low interest rates.”

Mayor Antonio said the Region’s residential lot prices were still very affordable in comparison with other areas.

“This indicates that supply is meeting demand,” Mayor Antonio said.

“This also extends to residential housing. REIQ data lists a median house price of $363,000 in the Toowoomba Region (for the 12 months to December 2020, based on 2,174 transactions.

“Further analysis of all house sales in 2020 reveals the continuing affordability of Toowoomba housing, which is dominated by the $300,000 to $399,999 price sector which represented 30.3% of sales in 2020.

“Almost 53% of all recorded sales were priced below $400,000.”

The presentation also highlighted that Toowoomba has seen high rental growth for townhouses, compared with other regions, which has been driven by retirees downsizing from houses to smaller dwellings.

More details can be viewed in the latest Toowoomba Region Building and Development Activity Report.

Visit, www.tr.qld.gov.au/buildingreport