Toowoomba unit construction at rapid pace: Herron Todd White
Developers have been competing for development sites to build apartments across Toowoomba for the last twelve months with construction activity now continuing at a rapid pace, according to Herron Todd White.
Herron Todd White's September Month in Review said in the western suburbs a primary concern is for the looming oversupply as vacancy rates for new units in the western suburbs are increasing.
"While at present new units are achieving a premium on sale, second hand stock has seen a reduction in both sale price and volume of transactions," the report noted.
"Asking prices for newly constructed units appear to be in the early stages of decline with some sales and rentals being incentivised. Despite this, across all property types the vacancy rate for Toowoomba has stabilised at 3%.
"The market for new units located in established, in-fill areas across the eastern and southern areas of Toowoomba are more sought after as this product is also appealing to owner occupiers, which broadens the buyer profile."
According to Herron Todd White the median unit price as at June 2015 for units in the 4350 postcode was $300,000 - a decrease of approximately 1.5% since the previous quarter.
