Herron Todd White Month In Review for Hervey Bay March 2021
It’s great to see our local market remains in the “rising market” segment for the 3rd month in a row this year!
Investor activity on the Fraser Coast is in stiff competition with the fast-paced owner-occupier demand, with most residential stock clearing within four weeks of being listed for sale. Most properties listed to go to auction are frequently sold before the auction can take place, with vendors content to accept offers which are likely to be above initial expectations.
New housing stock is presently being constructed in suburbs across Hervey Bay, in particular Kawungan, Urangan, Eli Waters, Pialba, Wondunna and Nikenbah. Some of the estates in these suburbs offer entry-level four-bedroom, two-bathroom homes for between $320,000 and $370,000 with gross yields of around six per cent.
A certain percentage of these are sold off the plan to investors however, sales to first home buyers appear to be the predominant market in this price range. Dwellings with attached granny flats are likely to be a popular choice in the years ahead, as some families condense their accommodation for older parents and reduce their overall debt exposure. Duplexes in Hervey Bay typically achieve gross yields of between six and eight per cent.
Well located older housing stock situated close to the beach or shopping remains a good choice for investors who have the time and money to renovate property.
Maryborough is known as the Heritage City and has some of the cheapest housing stock in the area, with properties on the market from $160,000. Dwellings in this price range are likely to require significant renovations however upon completion may achieve rental returns of $275 per week upwards. Low set, circa 1920, renovated homes are selling from around $210,000. High demand driven by interstate and intrastate buyers to the Fraser Coast is expected to continue in the short term, which is likely to continue to push house prices higher whilst supply remains low.