Hervey Bay Property Market Update 1st Half 2025
Hervey Bay boasts breathtaking beaches, a laid-back coastal lifestyle, and incredible whale-watching opportunities. With its warm climate, friendly community, and affordable living, it's an ideal escape from the hustle and bustle.
Property Trends
In Q1 2025, Hervey Bay recorded a median house price of $722,500 and a median unit price of $520,000. This is an annual (Q1 2024 – Q1 2025) price growth of 11.3% for houses and 16.4% for units. Comparing Q1 2024 and Q1 2025, sales dropped by -23.4% for houses (to 295 sales) and -36.6% for units (to 71 sales). There is a clear undersupply in the market for both property types, creating a buffer against higher interest rates; thus, price growth. Q1 2025 saw a high level of interest from buyers and an undersupply of homes for sale. Combined with no ready-to-sell homes planned in 2025, now is an ideal time to sell.
Project Development
Hervey Bay is to see approximately $361.4M of new projects commencing construction in 2025. Most of the projects plan to deliver ready-to-sell units, with very few townhouses. Although there is new land lots being created, that will take time to build. The lack of new stand-alone houses will put more pressure on the current undersupply of houses and push prices up higher.
Rental Market & Growth
House rental yield in Hervey Bay was 4.0% in March 2025, higher than Fraser Coast LGA (3.6%) and Brisbane Metro (3.2%). This is paired with a 5.1% growth in median house rental price in the past 12 months to Q1 2025, at $620 per week, along with a 4.9% increase in the number of houses rented (to 299 homes). Overall, this suggests a highly demanded and competitive house rental market in Hervey Bay, which is good news to investors.
Vacancy Rates & Property Investment
Hervey Bay recorded a vacancy rate of 1.2% in March 2025, below Fraser Coast LGA’s 1.4% but above Brisbane Metro’s 0.9%. Vacancy rates have increased slightly in the past 12 months due to investors returning to the market. However, a 1.2% vacancy rate is still well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, thus properties are rented quicker in Hervey Bay. This confirms there is healthy rental demand and a conducive sustainable investment environment, even with a higher entry price in Q1 2025.
