Hervey Bay
Spring has traditionally been an active time for the Fraser Coast market with an influx of southern travellers escaping the cold winter to enjoy our sunny beachside climate along with the annual migration of whales resting in the waters of Hervey Bay. This year has posed a challenge for agents with many non-local buyers not able to visit or even personally inspect properties.
Agents are currently reporting limited stock across most asset classes. This is a result of vendors not listing, thinking the market is in decline due to COVID-19, which is not the case. Since the recent announcement of the HomeBuilder grant by the federal government, vacant land supply across Hervey Bay has been rapidly declining to a point where most lots that can be developed and titled this year have sold.
Builders are reporting good forward contracts, however, have some concern about meeting government deadlines with the amount of construction planned over the next 12 months. With declining stock and strong demand, we may begin to see capital growth over the short to medium term.
Overall, the Hervey Bay property market is improving and on an upward trend. There continues to be strong demand for property priced below $400,000, which includes established housing and house and land packages within some estates. Buyer demand is improving for higher-priced property up to $700,000 either close to the Esplanade or in elevated locations. These properties are, however, expected to offer larger homes with extensive ancillary improvements or views.
The buyer pool for the top end of the market over $700,000 is also improving, which is encouraging for the region with some Esplanade properties being demolished and rebuilt with large, contemporary homes.
Vacancy rates for investment property are very low, which is starting to lead to a gradual increase in rental returns with gross yields typically above five per cent per annum gross.
Doug Chandler
Director HTW Hervey Bay