Hervey Bay Property Market Update 1st Half of 2021
In Q1 2021, Hervey Bay* recorded a median house price of $420,000, and a median unit price of $317,000. This represents annual (Q1 2020 – Q1 2021) median price growth of 18.3% for houses and 17.4% for units. Between Q1 2020 – Q1 2021 total sales increased, by 15.6% for houses (to 430 sales) and by 52.3% for units (to 131 sales). Median price growth alongside increased sales suggest there are real returns on capital investment in Hervey Bay*. Now is the time to transact, particularly for owner-occupiers looking to benefit from a highly demanded market.
Average vendor discounts between Q1 2020 and Q1 2021 have tightened for both property types, to -2.2% for houses and -2.8% for units. Market conditions in Hervey Bay* are shifting towards a seller’s market as buyers are willing to offer closer to the first asking price. There are still discounts, however this is limited.
In March 2021, house rental yields in Hervey Bay¥ were recorded at a healthy 4.9%. In the 12 months to Q1 2021, the median house rental price increased by 10.8% to $410 per week, with average days on the market declining by -28.3% (to 16 days). This places Hervey Bay* as a strong rental market, with room for more investors to enter the market.
4+ bedroom houses have provided investors with +5.0% rental growth annually, with a median rent of $420 per week.
Also in March 2021, Hervey Bay¥ recorded a low vacancy rate of 1.0%, which is on par with Fraser Coast LGA (0.6%), but well below that of Brisbane Metro (1.5%). Vacancy rates in Hervey Bay¥ have continued on a declining trend since April 2020 and remained well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, even throughout COVID-19. There is still an influx of rental demand in the area, creating a highly conducive investment market for investors.