While housing markets around the country head into negative territory, Toowoomba’s continues to rise on the back of an ‘infrastructure boom’ that has pushed its population up by 20 per cent over the past decade and a half.
This confidence is borne out by CoreLogic’s latest Regional Market Update, released in August, which shows that houses in the inland city, about 130km west of Brisbane, have increased in value by more than 20 per cent in the past year and are selling quicker than anywhere else in regional Australia, at 12 days on the market.
“Toowoomba has been in the midst of an infrastructure boom over the past decade with the second range crossing, the Wellcamp Airport, business park and the inland rail all being built or in progress,” LJ Hooker Toowoomba principal Mike Stewart says.
“Subsequently, there’s been heightened demand for property and that’s underpinned growth in property prices. Toowoomba’s real estate market is significantly undersupplied. Over the next three years we’ll see around 2000 homesites added to the market across the region.”
It is a combination of the affordable housing, quality schools, first-class medical facilities and amenable weather that is attracting Australians to the region.
The past two years have provided favourable conditions for the farming sector too. Small crop production still faces challenges but cattle and grain production have been healthy.
“Toowoomba is a milder climate and offers a lifestyle that’s comparatively affordable—entry-level four-bedroom, two-bathroom homes begin at around $550,000—while still having quality schools, the well-resourced University of Southern Queensland, and shopping centres including Grand Central, which houses Myer and many national retailers,” Stewart says.
“In the rental market, the vacancy rate is circa 0.1 per cent. Rents for investors have been going up an average of 10 per cent and as high as 15 to 18 per cent over a 12-month period for highly sought-after properties.”
Competitive housing market
The rental housing market is only going to get more competitive.
“With the lack of rentals, more first home-owners have entered the market, who had to compete with the local and non-local investors,” CBRE senior valuer Joseph Kelly says.
Entry level properties can still be found for less than $400,000, Kelly says, although this is expected to rise as non-local investors enter the market. He says the rental shortage has also seen a significant rise in rents, which has increased yields.
“With the lack of land, the council is intending on increasing medium-density housing for the city, which may be positive if done correctly in the right location, where services are available such as schools, shops and transport.”
The impact of Inland Rail
The Inland Rail development will have a big impact upon Toowoomba. The 28km Gowrie-to-Helidon section includes constructing a new track through the Toowoomba and Lockyer Valley region and building a vast freight tunnel.
The new dual gauge track will include several significant viaducts and cuttings designed to create an efficient route through the steep terrain.
A 6.2km tunnel will be built through the Toowoomba Range, making it the largest-diameter diesel freight tunnel in the southern hemisphere.
“The Inland Rail will circle around the city’s north, near the airport, and will employ 1200 people locally during construction,” Stewart says.
“Industrial land in Toowoomba is a third of the price of what you’d get in Brisbane. Here, you’re looking at $120 to $130 per square metre for 2ha sites.”
He says another major infrastructure project is the $1.3-billion Toowoomba Public Hospital, which will be located at Baillie Henderson campus in the city’s north. The existing hospital will be repurposed as a major health hub for day surgery, education, training and other affiliated uses.
Toowoomba is also set to have one of the world’s largest medicinal cannabis facilities. Now under construction on a 75ha site in Wellcamp, it includes a 40ha glasshouse facility.
Stewart says that after a prolonged drought, the past two years have provided favourable conditions for the farming sector.
“Small-crop production still faces challenges but cattle and grain production has been healthy,” he says.
The construction of the privately owned Toowoomba Wellcamp Airport by the Wagner family in 2014 has certainly helped business and contributed to population growth. It now has international weekly flights being operated by Singapore Airlines and Cathay Pacific.
It also has daily passenger flights to Sydney, Melbourne, North Queensland and also takes produce from the Lockyer Valley, Southern and Western Downs and Moree Plains to Asian markets.
“Boeing has set up an assembly facility here, which is the first ‘final assembly’ facility for it outside of North America; Schlumberger established themselves out of the Wellcamp Business Park, adjacent to the airport; Russell Mineral Equipment is also based out at Glenvale,” Stewart says.
Growing from within
Newlands is one local company that has benefited enormously from the state and federal government investment in the region.
Established in 2001, the privately owned Australian company specialises in design and construction services for civil, essential services (water and sewer), mining and commercial sectors.
“We are currently working on the Inland Rail project and we have a pretty full book for the next 12 months,” Newlands design manager Ashley Milner says.
“We have seen unprecedented growth in the past few years with no signs of that abating. There is so much infrastructure development going on here across a range of sectors such as agriculture, medical and transport and that, combined with the local airport, means people are confident to invest and live in Toowoomba.”
The Australian Bureau of Statistics puts the official population at 175,316 as of June 30, 2021, a steady increase of 20 per cent from the 145,992 recorded at June 30, 2006.
“The Queensland Government Statistician Office medium series projections identify population growth to 2051 to be in the order of 57,000 additional residents and 30,000 jobs,” Toowoomba Regional Council mayor Paul Antonio says.
“While this is substantial growth for the region, council has laid the platform to cater for this growth.”
He says few regional centres in Australia can point to more than $800 million in private and public investment in their city centre over the past decade.
“The combination of these major projects, the booming agricultural sector mixed with our growing health and education industries, makes Toowoomba one of the nation’s most diverse economies which is the envy of communities throughout Australia.
“Toowoomba has a promising and sustainable development pipeline which is consistent with long-term sustainable growth.”
Council investments
The Toowoomba Regional Council has a number of projects in the pipeline including:
Railway Parklands: with a $25-million funding pledge through the City Deal (three levels of government).
Charlton Sports Precinct: Council has endorsed a business case and master plan for seven stages of precinct development over 20 years. The total cost of the project is estimated at $197 million.
Highfields Library: The new library, customer service centre and community meeting facility at O’Brien Road is on track to open in September. The current facility supports 52,600 visitors annually.
Central Highfields: a masterplan is developing appropriate retail, commercial and industrial uses for the future town centre and private-sector investment opportunities.
Toowoomba CBD: Russell Street refresh stage 1 completion; stage 2 under construction and expected completion in November.
Water projects: Mt Kynoch Water Treatment Plant upgrade is progressing. Other water main upgrades; trunk sewer upgrades; wastewater treatment plant upgrades; the commissioning of the new water treatment plant at Clifton and waste facility upgrades across the region.
RSL Soldiers’ Memorial Hall, Toowoomba: the $4.4-million upgrade jointly funded by the federal government and council is scheduled to open soon.
Article source: www.theurbandeveloper.com
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