Herron Todd White – Month in review for Hervey Bay
Highly reputable property valuation firm, Herron Todd White, release a monthly review regarding the current state of our real estate markets across Australia.
Hervey Bay has consistently been shown as being at the “start of recovery” stage of the National Property Clock for houses & units now for a number of years.
Finally after strong sales results over the last 6 months, Hervey Bay has shifted to a “Rising Market” this month!
The following details are an extract from the full report for Hervey Bay – Month In Review by Herron Todd White May 2019.
HTW Hervey Bay – May 2019
Residential lots continue to be developed across Hervey Bay with in excess of ten larger scale estates currently offering lots. In addition, there has been an increase in the number of infill developments of less than ten lots developed over the past two years due to a change in planning scheme zonings in 2014.
With the high number of estates, there is a risk of oversupply however developers currently seem to be managing stock levels to ensure values do not diminish. Values have shown a slight increase from two to three years ago. Most estates are offering lot sizes from 450 square metres up to 900 square metres. Pricing can range from $135,000 up to $195,000 depending on location. Lot pricing appears to be accepted by the market, however, be wary of some estates that blanket-price the lots, meaning they have the same price no matter what size. These situations can see the larger lots sell first and the smaller lots remain on the market for extended periods.
Owner-occupiers and investors are currently active in our market. Some estates only offer house and land package deals with pricing from $330,000 up to $380,000 turn-key. Most homes generally comprise four bedrooms, two bathrooms with a double garage under the main roof.
There are a large number of builders in town from project packages to the more executive style homes. Display homes are found throughout Hervey Bay with the most recent concentration of display homes being situated in
The Springs at Nikenbah.
Those that do opt for a building contract separate to a land purchase should shop around as pricing can be broad. General rates range from $1,000 to $1,350 per square metre of the main area for homes from 125 to 165 square metres of the main area plus garage and covered outdoor areas with an average quality finish. Larger, more executive style homes can cost up to $1,500 per square metre, however, of late, larger homes seem to be showing a slightly lower rate with some as low as $1,200 persquare metre.
There appears to be a premium paid for new housing across Hervey Bay which is not achievable for older established homes. We understand some builders are offering incentives not disclosed in the contract which can negatively impact market sentiment and market value upon resale within these particular estates.
Given the current level of supply and number of lots available to be developed in the pipeline, there is a heightened risk that in some cases, total package prices may not be achievable upon resale. On the flip side, rental vacancies continue to be very low with strong demand. Rental rates can range from $360 to $400 per week for new homes within these estates, realising a gross return in the vicinity of five per cent.
The full report and past editions can be downloaded @https://www.htw.com.au/month-in-review/