Hervey Bay Property Market Update 1st Half of 2024
In Q1 2024 Hervey Bay recorded a median house price of $650,000 and a median unit price of $435,000. This represents annual (Q1 2023 – Q1 2024) price growth of 7.4% for houses and 3.6% for units. During this time total sales decreased by -28.9% for houses and by -42.9% for units. There is an undersupply for stock, creating a buffer against higher interest rates; especially for houses. This is good news for owners looking to sell. There is a slightly more affordable unit market in the past quarter, creating an opportunity for first home buyers.
Average vendor discounts between Q1 2023 and Q1 2024 have tightened to a discount of -2.8% for houses and -1.3% for units. Market conditions in Hervey Bay still favour buyers, as sellers are willing to accept below the listing prices. That said the peak discount periods have passed for both property types (in Q2 and Q4 2023), thus there is limited time for buyers to access a discount, before further price increased due to the current undersupply of available stock.
House rental yields in Hervey Bay was 4.4% as of March 2024, slightly higher than the Fraser Coast LGA (4.3%) and Brisbane Metro (3.5%). This was paired with a 9.3% increase in median house rental price in the past 12 months to Q1 2024, at $590 per week. The number of houses rented declined by -24.1% (to 236 sales), thus a rental undersupply. The same can be seen in the unit rental market, which confirms Hervey Bay as an area with high rental demand, in good news for investors looking for an alternative option in a Queensland coastal area.
2- bedroom houses have provided investors with +12.5% rental growth annually, achieving a median rent of $450 per week.
Hervey Bay recorded a vacancy rate of 1.0% in March 2024, slight above Fraser Coast LGA’s 0.7% average, but on par with Brisbane Metro’s 1.0% average. Vacancy rates in Hervey Bay decreased in the last 12 months, due to renters entering the already undersupplied market. A 1.0% vacancy rate is well below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, which suggests quicker occupancy of rental properties. This is conducive for investors.
