Hervey Bay Property Market Update 2nd Half of 2023
In Q3 2023, Hervey Bay recorded a median house price of $618,000, and a median unit price of $444,500. This represents annual (Q3 2022 – Q3 2023) growth of 3.0% for houses and 6.5% for units. On a quarterly basis (Q2 2023 – Q3 2023) median prices have softened, by-1.9% (house) and -5.0% (units). Total sales have decreased annually and quarterly, with Q3 2023 recording the lowest number of sales in the past 18 months. Quarterly price growth is reflective of higher interest rates translating into the market, however there is a severe shortage of listings with buyers drastically outnumbering sellers. Average vendor discounts between Q3 2022 and Q3 2023 have continued in the same trajectory, at a higher discount of -3.3% for house and -1.0% for units. Market conditions still favour buyers, as vendors are willing to accept below the first list price. However, properties listed at, or close to market price, are met with huge demand and are selling within days of being listed. House rental yields in Hervey Bay was 4.1% in September 2023, on par with Fraser Coast LGA (4.2%) but much higher than Brisbane Metro (3.6%). This was paired with a median house rental price of 10.0% in the past 12 months to Q3 2023, to $550 per week, and a 16.3% increase in the number of houses rented (to 363 houses). This suggests a highly demanded rental market, as rental prices continue to increase despite a higher number of properties rented. 3-bedroom houses have provided investors with +8.7% rental growth annually, achieving a median rent of $500 per week. Hervey Bay recorded a vacancy rate of 0.9% in September 2023, slightly lower than Brisbane Metro’s 1.0% average. Vacancy rates in Hervey Bay have fluctuated slightly over the past 12 months, however, have held relatively steady overall. This suggests a tight rental market and quicker occupancy of rental stock. These key indicators create a conducive and sustainable environment for investors, especially with a more affordable entry price in the past quarter (Q2 2023 – Q3 2023).
Key Findings
- In Q3 2023, Hervey Bay recorded a median house price of $618,000, and a median unit price of $444,500. This represents annual (Q3 2022 – Q3 2023) growth of 3.0% for houses and 6.5% for units. Total sales have decreased annually and quarterly, with Q3 2023 recording the lowest number of sales in the past 18 months. there is a severe shortage of listings with buyers drastically outnumbering sellers.
- 3-bedroom houses have provided investors with +8.7% rental growth annually, achieving a median rent of $500 per week. House rental yields in Hervey Bay was 4.1% in September 2023, on par with Fraser Coast LGA (4.2%) but much higher than Brisbane Metro (3.6%).
- A total of $101.1M in project development is scheduled for the 2nd half of 2023, mainly focusing on the residential sector. Approximately 33 units, 92 townhouses, 5 dwellings, and 676 lots are planned. There is a low number of stand-alone houses in the mix, which will keep pressuring house prices to a higher sale price.
- Vacancy rates in Hervey Bay were a low 0.9% in September 2023, indicating strong rental demand. Vacancy rates in Hervey Bay have held relatively steady in the past 12 months. This suggests a tight rental market and quicker occupancy of rental stock.
- Property prices in Hervey Bay are more affordable compared to Fraser Coast LGA and Brisbane Metro, however with comparable and/or higher rental yields and lower vacancy rates. This makes Hervey Bay an ideal place for investment.
