Herron Todd White – Month In Review Hervey Bay August 2020
Since the lifting of Stage 3 restrictions for COVID-19, the Fraser Coast has experienced a return to some normalcy.Tourists from mostly within Queensland have visited for the school holidays and provided a valuable cash injection to the local economy.
Despite Victoria and New South Wales recording a second wave of infections, regional Queensland appears to be unaffected at this stage. Property values in the area are stable with no noted decline in any property class. There has been a considerable increase in the volume of land purchased as a result of the Homebuilder package which will no doubt sustain the building industry for at least twelve to eighteen months into the future. Developers are now swiftly working on infrastructure for the next stages of developments to provide more land stock before the end of year deadline. An extension to this deadline would be welcome news with many builders having been overwhelmed by the Homebuilder incentive.
Local agents have been reporting steady demand for investor stock which does not appear to have changed since the start of the COVID-19 pandemic.
Investors are somewhat constrained at present with low levels of residential stock listed for sale with some hesitant residents choosing to sit tight and stay put rather than list their homes for sale. Some lower priced property in the sub-$300,000 price range is achieving slightly above market prices due to the shortage. Local investors appear to be more prevalent of late, particularly for standard house and land packages. Hervey Bay has very low volumes of available rental stock, particularly for detached houses, which is increasing rents in response to demand. Investors can expect to achieve minimum rental yields of five per cent per annum gross and above which looks set to continue in the short to medium term.
You can download the full reports @ https://www.htw.com.au/month-in-review/