Hervey Bay Property Market Update 1st Half of 2022
In Q1 2022, Hervey Bay recorded a median house price of $590,000, and a median unit price of $391,000. This represents annual (Q1 2021 – Q1 2022) median price growth of 35.6% for houses and 26.1% for units. Total sales decreased between Q1 2021 – Q1 2022, by -26.3% (to 466 sales) for houses and by -15.8% (to 133 sales) for units. Current market conditions indicate an undersupplied house and unit market, as high price growth is accompanied with lower number of sales. This is further confirmed in the average vendor discount pattern, which has swung to a premium for the past two quarters.
Average vendor discounts between Q1 2021 and Q1 2022 have rapidly shifted for both property types, swinging to premiums of 0.8% for houses and 0.5% for units. Market conditions in Hervey Bay have continued to favour vendors for the past six months, as buyers are willing to offer above the initial listing price.
House rental yields in Hervey Bay were recorded at 4.4% in March 2022, much higher than Brisbane Metro (3.3%). This was paired with a 22.0% increase in median house rental price in the 12 months to Q1 2022 and a 3.1% increase in demand for rental properties (265 houses rented in Q1 2022). This is an expected dynamic shift in the market, as there has been a decrease in property sales. Hervey Bay is a more affordable and attractive investment alternative to Brisbane Metro.
3 bedroom houses have provided investors with +16.7% rental growth annually, achieving a median rent of $420 per week.
Hervey Bay recorded a vacancy rate of 0.2% in March 2022, which is below Brisbane Metro’s 0.7% average. Vacancy rates in Hervey Bay have held steady over the past 12 months, trending within/lower than the 0.5% range for the past 18 months. This indicates stability in its rental demand. These key indicators create a conducive and sustainable environment for investors, despite the increase in median sale prices of property over the past 12 months.
