Suburb Profile

Toowong | 4066

A prestigious, highly desirable blue-chip area, motorways, providing direct routes to key locations including the CBD, airport, and northern suburbs. Toowong was declared ’s most liveable suburb by professional services firm At Toowong’s centre is a thriving commercial and retail hub including tower and several other office and retail PwC in their recent CityPulse SEQ report. buildings. The 46,000sqm Toowong Village recently underwent a $50 million refurbishment, which saw revamped interiors, improved layout, new amenities and an alfresco dining precinct. Area Overview The Wesley Hospital on the suburb’s northern border has also The suburb beat Brisbane’s 260 suburbs, assessed on a diverse undergone an upgrade, making its private emergency department range of factors including affordability, crime rates, walkability the largest in Brisbane. and transport, access to employment and essential services, entertainment, and cultural amenity. Proximity to some of ’s most sought-after schools and tertiary institutions also provides immense appeal, bolstering The SEQ Regional Plan functions as the overarching urban property values, including St Ignatius Primary School, the ultra- planning guide to all future growth and development decisions in exclusive Brisbane Boys’ College, Stuartholme School, St Peters South East Queensland. Toowong’s designation as one of only Lutheran College and The . ten “Major Activity Centres” within the region ensures sustained public and commercial investment in the suburb. As such, the While Toowong is already amenity rich, residential values stand to area’s exceptional pre-existing locational attributes will be further capitalise further from a significant pipeline of development and enhanced, boding well for residential investment prospects. proposed infrastructure. This includes a new $450 million mixed- use precinct on a 9,000sqm site opposite Toowong Village, Infrastructure & Amenity incorporating retail, dining, and a 5-star hotel. Located just 4km from the CBD, Toowong is directly serviced Toowong is also set to greatly benefit from the Brisbane City by Brisbane’s high frequency public transport network and is Council ‘Green Bridges’ initiative, with technical investigations only three stops from central station by train, and four by bus. now underway for a cycling and pedestrian connection linking connects Toowong to major arterial networks and Archer Street, Toowong to Orleigh Park, West End. Suburb Profile | Toowong

TOOWONG POPULATION AGE PROFILE Population & Demographics 25.00%

Toowong’s residents are largely young and active white-collar 20.00% professionals with a high socio-economic status. The median age is 29, and close to a quarter of the population earns over 15.00% $150,000 per annum. 1996 2016 Toowong Greater 10.00% Brisbane Median Age 29 35 5.00% University Educated 53% 19% 0.00% Professional Occupations 42% 23% 0-5 yrs 6-12 13-19 20-25 26-35 36-45 46-55 56-70 71-79 80+ yrs yrs yrs yrs yrs yrs yrs yrs yrs Median Weekly Household Income $1,694 $1,562 Source ABS Median Weekly Family Income $2,260 $1,821 > $3,000 Gross Weekly Income 23% 18% Employment

Source ABS Toowong’s most recently recorded unemployment rate of 4.4% sat comfortably below wider Brisbane’s rate of 5.6%, and well The area’s residential population has grown by more than 10% below the national level. Despite the peak in unemployment over the previous decade to now approximately 12,331 as at the associated with Covid-19, Toowong managed to maintain what is end of 2019. Based on current underlying demographic trends, widely considered an optimum unemployment rate (one between the population is projected to increase by close to an additional 4% and 5%). This is likely due to a combination of proximity to 20% by 2036. major employment hubs and the demographic drawn to the area – namely well-educated, white-collar professionals That said, this does not factor additional potential influences on COMPARATIVE UNEMPLOYMENT RATES- DECEMBER 2019 population such as increased social and community infrastructure

development and employment opportunities. Given Toowong’s 7.0% designation as a “Major Activity Centre” and the subsequent investment and development focus it will attract, population numbers can be expected to notably exceed forecasts. 6.0% 7.7%

7.4% TOOWONG POPULATION- HISTORIC & FORECAST 5.0% Historic 6.7% 14000 Forecast +19% 5.6% 4.0% 12000 +12% 4.4%

10000 3.0% Melbourne National Sydney Brisbane Toowong 14,703 8000 Source: Australian Government Department of Education, Skills and Employment 12,331 10,992 6000 In the five years preceding the 2016 Census, local employment opportunities increased by 8% and are projected to increase by a

4000 further 22% by 2026.

LOCAL AREA EMPLOYMENT FORECAST 2000 10,765 Historic 2009 2019 2036 10500 Source ABS, GSQ Forecast 10000 +22% Toowong’s age profile shows a decrease in teenage and 9500

middle-age residents and growth in the young professional and 9000 8,836 retirement/downsizer demographic. This reflects an increasing 8500 +8% appetite for low maintenance, lifestyle-led living options near 8,205 8000 excellent levels of amenity. These groups also typically have greater financial capacity to rent or purchase premium quality 7500 dwellings. 7000 2011 2016 2026 Source: ABS, BCC Suburb Profile | Toowong

Despite its proximity to Brisbane’s CBD, Toowong has maintained Residential Property Market a high number of freestanding character homes. This is especially true when comparing to nearby suburbs where apartment BRISBANE MACRO development has been largely unrestricted. Further to this, a Industry experts including BIS Economics have forecast the comparatively large number of dwellings are also owner-occupied. Brisbane residential property market to outperform all other FREESTANDING & OWNER-OCCUPIED DWELLING capital city markets in the coming three years. The key drivers COMPOSITION of this outlook include SEQ’s record infrastructure pipeline, 45% Queensland’s stronger economic outlook, record levels of 40% interstate migration driven by Brisbane’s affordability, and a 35% rapidly declining future dwelling supply pipeline. 30% 45% As demonstrated in the graph below, “real” new apartment 25% 39% 36% supply is extremely limited. Based on historical demand and 20% 37% 31% anticipated supply, Inner Brisbane will experience a shortfall of 15% 30%

over 14,000 new apartments over the next 3 years, highlighting 10% the strength of investment opportunity in new high-quality 12% 5% 8% product. 0% South Brisbane Kangaroo Point West End Toowong INNER BRISBANE POTENTIAL APARTMENT SETTLEMENTS Freestanding Dwellings Owner Occupied Dwellings 7000 Source ABS

6000 5,020 units per year average demand A high percentage of free-standing and owner-occupied dwellings 5000 provide a crucial differentiation for Toowong over other inner-city locations, favouring future investment prospects for attached Presales 4000 dwellings. This? is because it provides a “safety net” to the Under Constuction? 3000 apartment marketBuilt or a logical position from which units should be valued and notAve. just Demand an Previous“investment 5 yrs yield value”. A larger proportion 2000 of owner-occupiers on high incomes is indicative of a less

1000 volatile and more sustainable market than one which is primarily supported by investor demand. 0 2015 2016 2017 2018 2019 2020 2021 2022 2023 Further, strong demand for limited rental stock has seen 2- and 3-bedroom apartment rents rise by 23% in the previous three Source ABS, JLL years.

Reflecting this, Toowong’s residential investments yields are TOOWONG MICRO exceedingly strong, especially when compared other key Reflecting Toowong’s status as an extremely desirable blue-chip apartment markets. While typical 2-bedroom apartment yields in location, houses sold during 2020 commanded an average Brisbane significantly outperform both Sydney and Melbourne, $427,000, or 75% premium over those sold across the Greater standard returns in Toowong are higher yet again. Brisbane area during the same month. TOOWONG MEDIAN HOUSE PRICES $992,000 $1,000,000

$900,000

$800,000 +$427,000 $700,000

$600,000 $565,000

$500,000

$400,000

$300,000

$200,000

$100,000

$0 Greater Brisbane Toowong Source Pricefinder Suburb Profile | Toowong Suburb Profile | Toowong

AVERAGE 2 & 3 BEDROOM APARTMENT RENTS

$500

$450

$485 $400 $478

$438

$350 $395

Apartment resales also substantiate the underlying long-term

$300 health of Toowong market, which will continue to grow as national 2017 2018 2019 2020 market conditions improve and sentiment builds.

Source RTA Fundamentally however, what will ultimately drive Toowong’s outperformance of the wider Brisbane market is the fact only a very small percentage of the city’s dwindling supply pipeline is being 2-BEDROOM APARTMENT GROSS RENTAL YIELDS - 2020 delivered to the Inner West. Being subject to such exceptionally strong underlying demand drivers and a comparatively constrained future supply means that property investors are well positioned to 6.0% strongly capitalise in the coming years.

DISTRIBUTION OF FUTURE POTENTIAL INNER BRISBANE 5.0% APARTMENT SUPPLY 50.0% 45.0% 4.0% 40.0% 5.6% 5.3% 35.0% 30.0% 3.0% 3.8% 3.6% 25.0% 43.7% 20.0% 38.9% 15.0% 2.0% Sydney Melbourne Brisbane Toowong 10.0%

5.0% 9.6% 7.8% Source SQM Research 0.0% Inner South Inner North Inner East Inner West Source JLL TOOWONG APARTMENT RESALE PERFORMANCE

Address Initial Sale Price Initial Sale Date Resale Price Resale Date Hold Period Total Growth Avg. Annual Growth 2/3 GROVE ST $366,000 10/02/2004 $628,000 15/01/2018 13.9 $262,000 $18,849 130/32 PATRICK LANE $421,800 1/09/2005 $610,000 05/01/2018 12.4 $188,200 $15,177 7/59 JEPHSON ST $480,000 3/10/2011 $585,000 10/04/2019 7.5 $105,000 $14,000 24/21 CAMPBELL ST $255,000 23/06/2003 $430,000 24/08/2019 16.2 $175,000 $10,802 48 JEPHSON ST $1,185,190 30/05/2018 $1,340,000 20/08/2019 1.2 $154,810 $129,008 6/7 LANDSBOROUGH TCE $380,000 18/11/2015 $429,000 25/01/2020 4.2 $49,000 $11,667 13/26 ARCHER ST $641,000 23/08/2014 $749,000 10/02/2020 5.5 $108,000 $19,636 2/29 ASCOG TCE $465,000 23/02/2019 $510,000 13/03/2020 1.1 $45,000 $40,909 AVERAGE 7.8 $135,876 $32,506

BRISBANE | GOLD COAST | SUNSHINE COAST 1300 336 989 | [email protected] mosaicproperty.com.au

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