Hervey Bay Property Market Update 2nd Half of 2020
In Q3 2020, Hervey Bay recorded a median house price of $380,000 and a median unit price of $277,000. This represents annual (Q3 2019 – Q3 2020) median price growth of 4.3% for houses and 11.7% for units. Between Q3 2019 – Q3 2020 total sales softened, by -26.5% for houses (to 261 sales) and by -4.2% for units (to 68 sales). This is due to a combination of low stock and COVID-19 restrictions. That said median price growth for both property types amidst COVID-19 shows the resilience within a regional market, potentially with an undersupply. Now is an ideal time to transact in Hervey Bay.
In the 12 months to Q3 2020, average vendor discount has tightened for both property types, to -4.8% (houses) and -5.0% (units). The Hervey Bay market provides unique opportunities. Sellers can achieve a final sale price closer to their first list price, whilst buyers can still benefit from a discount. Now is the time to transact.
In September 2020, house rental yields in Hervey Bay were recorded at a healthy 5.7%. In the 12 months to Q3 2020, median house rental price grew by 4.1% to $380 per week. This is also in conjunction with average days on the market declining by 20.0% (to 16 days). Overall, this represents an extremely resilient rental market amidst COVID-19 conditions.
3 bedroom houses have provided investors with +2.9% rental growth annually, with a median rent of $350 per week.
Also, in September 2020, Hervey Bay recorded a significantly low vacancy rate of 0.9%, well below Brisbane Metro (2.0%). Vacancy rates in Hervey Bay are now at a three-year historical low level, well below the Real Estate Institute of Australia’s healthy benchmark of 3.0% and continuing a declining trend even amidst COVID-19 conditions. This confirms there is an ongoing healthy rental demand towards regional areas, which will significantly benefit investors.