Toowoomba Property Predictions 2022
Toowoomba Property Predictions for 2022
Whilst we cant offer any “ground breaking” predictions in regards to what’s in store for the Toowoomba Property Market for 2022, we believe the sentiment by expert property advisors can be applied to our local market. These tips are as follows:
1. Capital Growth will continue but not at the same pace
It is likely that we will see continued capital growth, however, not to the extent of rapid pace that we experienced in 2021, stock will continue to be tight until at least March. Most of the properties that we will list in the next few weeks, is investment stock, and vacant owner/occupier properties will be in short supply. According to Heron Todd White, the Toowoomba Property Clock goes through 7 years cycles. Our last boom was 2014, so we were naturally due for capital growth in 2021. Generally the local boom will last for about 18months, so based on this, we should see strong growth continue until mid-year. However…we weren’t expecting the enormous growth that we saw in 2021, and therefore it is hard to know what to predict in the next few weeks, let alone, to mid year.
2. Rental Demand will stay strong!
The rental market will continue to be very tight, it is currently 0.5% and we haven’t seen it this low since 2010. Our tip for investors is - if you are looking at purchasing a house or set of units, and the property is currently rented below market value - don’t let the low rent in the short term worry you. If it is a good property, in a good location and is under rented, this is more likely due to poor management by the agent or if the existing owner wanted to keep the tenant on the same rate. It isn’t hard to improve the rental yield when the new lease is offered. Whether this takes 2 or 8 months, you just need to allow for this in your initial offer. We’ve helped many investors over the last few months improve their yield by cleaning up the tenancy by either getting new tenants or offering market value leases to existing tenants.
3. Days on market will be longer:
Across Australia, homes on average were selling in 23 days in 2021 with minimal negotiation on advertised prices, and auction clearance rates were holding high. However, the tides have started to turn as new listings increased and the average time on market is beginning to increase, while auction clearance rates have trended down.
4. Tradies will continue to be in hot demand!
The one certainty that we can predict is the need to become best friends with tradies. Once you need referrals to get into elite clubs and schools, now you need referrals by tradies to other tradies. Across the board, plumbers, electricians, carpenters, roofers, tree loppers etc, are in hot demand. Most won’t return your call, unless you drop a name of someone they know. So if you are reno-ing a property or preparing for sale – you need to work on your network of help.
