Sales Up Nine Percent in Hervey Bay
Confidence is back in the Hervey Bay property market with 832 transactions recorded in the six months prior to November last year.
That figure is a dramatic nine per cent increase on the five year average for sales in the region, while the median price of a standard house of $312,000 hovers near pre-GFC levels. According to a Property Watch report prepared by PRD’s Research Department, Hervey Bay is benefiting from a healthy mix of buyers entering the market, with first timers eager to take advantage of low interest rates and comparative affordability and sellers looking to capitalise on reduced time-on-market and improved sales prices.
PRD Research Analyst Angus McLean said that Hervey Bay was attracting a number of new faces to the region as large scale projects such as the Stockland Shopping Centre expansion and St Stephen’s Private Hospital bring jobs in the construction industry. “The influx of workers and their families to the region has underpinned increased demand in the rental market, which has in turn created a number of solid opportunities for investors in Hervey Bay,” he said.
“Rental yields are up across all dwelling classes except for one bedroom units, which experienced a fall of $19 per week over the last twelve months. Landlords that own a four bedroom house or a three bedroom unit collected as much as $20 extra per week in 2013 and as demand intensifies we may see further rental increases in the near future.” PRD Hervey Bay Principal Jim McKay commented that increased rental returns had become a big factor in the appeal of the local market.
“Vacant rental properties are attracting a huge amount of enquiry with multiple applicants for each property. It’s great that we can now offer our landlords a selection of tenants to choose from. Many of our new tenants are choosing Hervey Bay over the more expensive rental areas to the north,” Mr McKay said.
“They are seeking cheaper rents and better lifestyle, and this is driving our rent prices up.” Mr McKay said the recent upsurge in activity boded well for market participants in 2014. “Properties are selling much faster and time on the market in many cases is now just weeks,” Mr McKay said.
“We have recently sold numerous properties at prices we were no chance of achieving 12 months ago.
“Property prices here are greatly undervalued so expect big things for Hervey Bay."
Published on February 20, 2014