Hervey Bay Property Market Update 2nd Half 2025
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 Q3 2025, Hervey Bay recorded a median house price of $760,000 and a median unit price of $590,000. This is an annual (Q3 2024 – Q3 2025) price growth of 9.4% for houses and 20.4% for units. Comparing Q3 2024 and Q3 2025, total sales decreased by -29.6% for houses (to 316 sales) and -29.5% for units (to 93 sales). Q3 2025 saw a higher level of interest from buyers and an undersupply of homes for sale in the market. This created a buffer against higher interest rates; hence continuous price growth. Combined with cash rate cuts in 2025 and no ready-to-sell houses planned in the 2025 pipeline, now is an ideal time for owners to transact.
Project Development
Hervey Bay plans to see approximately $180.6M of new developments commence construction in 2025. Planned residential developments include Baylinks Estate Pialba (204 lots), Opal Shelley Beach (47 apartments), and 254-262 Torquay Terrace (20 townhouses). However, these will deliver ready-to-sell townhouses and units. While land lots are available, they will require time to build into new homes. The shortage of new stand-alone houses will worsen the current undersupply, driving prices higher across all property types.
Rental Market & Growth
House rental yield in Hervey Bay was 3.8% in September 2025, higher than Fraser Coast LGA (3.5%) and Brisbane Metro (3.1%) yields. This is paired with an 8.3% growth in median house rental price in the past 12 months to Q3 2025, at $650 per week, along with a -15.9% decrease in the number of houses rented (to 264 rentals). Overall, this suggests an undersupplied house rental market in Hervey Bay, which will benefit investors looking for an affordable alternative to Brisbane.
Vacancy Rates & Property Investment
Hervey Bay recorded a vacancy rate of 0.9% in September 2025, below Fraser Coast LGA’s 1.1% and Brisbane Metro’s 1.0%. Vacancy rates in Hervey Bay have increased slightly in the past 12 months, due to investors returning to the market. That said, a 0.9% vacancy rate is still significantly below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, thus properties are rented quicker in Hervey Bay. This confirms that there is a healthy rental demand and a conducive, sustainable
