Hervey Bay Property Market Update 1st Half 2026
Hervey Bay offers stunning beaches, a relaxed coastal vibe, and amazing chances to see whales up close. With its sunny weather, welcoming community, and cost-effective lifestyle, it’s a perfect retreat from the busy city life.
Property Trends
In Q1 2026, Hervey Bay recorded a median house price of $840,000 and a median unit price of $602,500. This represents an annual (Q1 2025 – Q1 2026) median price growth of 13.5% for houses and 15.9% for units. Comparing Q1 2025 and Q1 2026, total sales declined by -6.5% for houses (to 374 sales in Q1 2026), but increased by 11.4% for units (to 117 sales in Q1 2026). The undersupply in housing stock and a high demand for units supported price growth, even with cash rate hikes in 2026. Thus, now is still an ideal time for owners to capitalize on their investments. With a limited number of new stand-alone houses planned, buyers must act fast before prices rise further.
Project Development
Hervey Bay plans to see approximately $388.4M of new developments commence construction in 2026. Although many residential projects are planned for construction in 2026, the supply of ready-to-sell stand-alone houses is very limited (7 houses). This suggests that the house undersupply is expected to worsen. As a result, prices are highly likely to increase, across all property types (not just houses).
Rental Market & Growth
House rental yield in Hervey Bay was 3.8% in March 2026, higher than Fraser Coast LGA (3.6%) and Brisbane Metro (2.9%). This is paired with a 4.0% growth in median house rental price in the past 12 months to Q1 2026, at $650 per week. Further, there was a 33.3% increase in the number of houses rented; to 452 rentals in Q1 2026. Overall, this suggests a highly demanded house rental market in Hervey Bay, which benefits investors, especially those looking for a more affordable option to Brisbane Metro.
Vacancy Rates & Property Investment
Hervey Bay recorded a vacancy rate of 1.6% in March 2026, above Fraser Coast LGA’s 1.3% and Brisbane Metro’s 0.8%. Vacancy rates in the past 12 months have increased, due to investors returning to the market. That said, a 1.6% vacancy rate is still below the 3.0% benchmark, thus properties are rented quicker (occupancy) in Hervey Bay. There is a healthy rental demand and a conducive investment environment in Hervey Bay, even with a higher median house and unit sales price (thus, entry price) in the past 12 months to Q1 2026.
