Hervey Bay Property Market Update 1st Half of 2020
In Q1 2020, Hervey Bay recorded a median house price of $350,000, and median unit price of $264,000. This represents annual (Q1 2019 – Q1 2020) median price softening of -0.6% for houses and -4.0% for units. Between Q1 2019 – Q1 2020 total sales declined, by -14.5% for houses (to 300 sales) and by -3.6% for units (to 81 sales). The Hervey Bay property market shows resilience through marginal price softening. It is ideal for first home buyers and investors alike, as it provides both affordability and attractive rental yields.
Average vendor discounting between Q1 2019 and Q1 2020 has tightened to -4.7% for houses but widened to -5.5% for units. There has been a large amount of negotiation activity for both property types, with house sellers being able to achieve closer to their first list price, creating a more conducive environment to sell in. Unit buyers are benefiting from higher discounts.
House rental yields in Hervey Bay were recorded at a heathy 4.8% in December 2019, which is on-par with Fraser Coast LGA (4.8%) and above Brisbane Metro (3.9%). The house rental market is in a strong position, particularly when combined with the increased house rental median price over the past 12 months to Q1 2020, up +4.9% to $375 per week.
2 bedroom houses provided investors with +5.3% rental growth annually, achieving a median rent of $300 per week.
Hervey Bay recorded a vacancy rate of 2.3% in December 2019. Although this is representative of an increasing trend in the past 12 months it is still well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%. Further, Hervey Bay recorded vacancy rates below Brisbane Metro, at 2.9%. This confirms there is a healthier rental demand in Hervey Bay, which is good news for investors.