Toowoomba home to nine of Qld’s top investor hotspots

Toowoomba has been revealed as Queensland’s top spot for property investment with nine of the region’s suburbs making the Sunshine State’s list of best regional places to invest.

The new MCG Regional Movers and Investor Hotspots 2025 report analysed migration and property data to highlight regional investment opportunities amid urban exodus across Australia.

Mike Mortlock, report author and MCG Quantity Surveyors managing director, said MCG’s analysis indicated a clear trend – Australians were increasingly looking beyond the capital cities for property investment.

“Regional areas are not only offering better affordability but also promising rental yields and lifestyle benefits that are attracting a diverse range of buyers,” he said.

The MCG analysis found the top 10 investor suburbs for each state, with shortlists created by prioritising rental yields, strong population growth and the MCG Investor Score, a composite index reflecting yield, affordability, sales and rental turnover, market liquidity and local demographic strength.

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The home at 3-5 Kent St, Millmerran, is for sale for $649,000. Picture: realestate.com.au

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The Queensland list included nine suburbs in the Toowoomba region, one in Gympie and one in Mackay.

Coming in at number one was Millmerran in wider Toowoomba with a median house price of $388,500, a gross rental yield of 4.8 per cent and a MCG Investor Score of 81, which was the third highest score in the country.

The report said the renal market in Millmerran remained tight, while regional industry and agriculture anchored the local economy.

“Rents have grown 7.1 per cent over the past year, and a low buy affordability (5.4 years) supports steady demand from local tenants and families,” the report said.

The Clifton-Greenmount area, also in wider Toowoomba came in second with an average house price of $455,000, a gross rental yield of 5.1 per cent and a MCG Investor Score of 80.

Pittsworth in the Toowoomba region was third with the median house price sitting at $615,000, gross rental yield at 4.3 per cent and the MCG Investor Score at 76.

The wider Toowoomba areas of Jondaryan, Crows Nest – Rosalie, Highfields, Cambooya – Wyreema and Gowrie all made the list, along with Kilkivan in Gympie.

Walkerston – Eaton in Mackay and Middle Ridge in Toowoomba tied for 10th place.

The property at 5 Collins St, Pittsworth, is for sale for offers over $599,000. Picture: realestate.com.au

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Sales agent Ben Liesch, of Ray White Toowoomba said the majority of Toowoomba suburbs that made the list were on the outskirts of the city or out of town.

“These are areas are more so that entry level buying,” he said.

“There has been hot competition in those area driving prices up and there’s also more people having to look out of town for rentals because of short supply.”

Mr Liesch said with Toowoomba experiencing a vacancy rate below 1 per cent and a growing population, investors were keen to break into the local property market.

“We do get a lot of enquiry from out of area investors and local investors have been quite busy, too,” he said.

“We’ve also got a lot of buyer’s agents acting on behalf of investors.”

Mr Liesch said investors were particularly active in the $600,000 to $700,000 price bracket, which was considering entry level in Toowoomba.

“In an area around town (that price point) gets you a three or four-bedroom home with one to two bathrooms and a little bit older.

“In more densely populated areas, it can get you a more modern house.

“Anything below $600,000 is likely a renovator or fairly out of town.”

Ray White Toowoomba sales agent Ben Liesch.

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Mr Liesch said the Toowoomba property market had been heating up since Covid with projects such as the new public hospital under construction helping to drive population growth and interest in the region.

The Regional Movers and Investor Hotspots report found Queensland was a leading destination for internal migration and a welcoming environment for property investors, underpinned by population growth, ongoing infrastructure commitments and steady rental demand.

“The state’s generally pro-investor policy environment, alongside fewer regulatory changes than seen in Victoria or New South Wales, continues to support positive investor sentiment, particularly in the southeast and along the coast,” Mr Mortlock said.

“However, the post-pandemic surge in house prices has softened, and competition from both owner-occupiers and migrating families is intensifying in key markets.”

The home at 9 Staunton Ave, Highfields, is for sale for offers over $799,000. Picture: realestate.com.au

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Mr Mortlock said the December 2024 Regional Movers Index highlighted the resilience of Queensland’s regional lifestyle appeal, with the top five LGAs by share of net internal migration being Sunshine Coast (35.8%), Fraser Coast (11.7%), Gympie (7.2%), Mackay (6.2%) and Toowoomba (6.0%).

“Collectively, these five regions account for more than two-thirds of the state’s net migration gains, reaffirming Queensland’s status as a magnet for those seeking affordability, climate and a slower pace of life,” he said.

“The Sunshine Coast remains the state’s dominant growth corridor and the most popular regional destination nationally, though its share of migration is gradually receding as new hotspots emerge.”

Mr Mortlock said Fraser Coast, Gympie and Toowoomba were increasingly sought after by city leavers and established Queenslanders, drawn by lifestyle, expanding job opportunities and more attainable property markets, while traditionally resources-driven Mackay was also benefiting from diversification.

QUEENSLAND TOP 10 INVESTOR SUBURBS

(SOURCE: MCG Quantity Surveyors)