Hervey Bay Property Market Update 2nd Half of 2021

In Q3 2021, Hervey Bay recorded a median house price of $475,000, and a median unit price of $295,000. This represents annual (Q3 2020 – Q3 2021) median price growth of 24.0% for houses and 8.9% for units. Between Q3 2020 – Q3 2021 total sales slowed, by -28.4% for houses (to 368 sales), however sales increased for units by 11.0% (to 131 sales). Current market conditions indicate an undersupplied house market, as high price growth is accompanied with lower number of sales. The unit market shows real returns in capital investment, with median price and sales volumes travelling upwards.

Average vendor discounts between Q3 2020 and Q3 2021 have tightened for both property types, to -0.8% for house and -1.0% for units. Market conditions in Hervey Bay have now shifted to favour sellers, where buyers are more willing to offer closer to the first list price to secure their dream home. Now is an ideal time for vendors to sell.

In September 2021, house rental yields in Hervey Bay were recorded at 5.4%. In the 12 months to Q3 2021, the median house rental price increased by 15.8% to reach $440 per week, further complemented with low average days on the market (18 days). There is a healthy rental market in Hervey Bay, with investors benefitting from a highly demanded market.

2 bedroom houses have provided investors with +13.3% rental growth annually, with a median rent of $340 per week.

Also in September 2021, Hervey Bay recorded a low vacancy rate of 0.8%, slightly above Fraser Coast LGA (0.5%), but well below that of Brisbane Metro (1.4%). Vacancy rates in Hervey Bay remain at historical lows over the past 12 months, and below the Real Estate Institute of Australia’s healthy benchmark of 3.0%, even amidst COVID-19 recovery conditions. Rental demand continues to increase, and investors can be confident of a conducive investment environment in Hervey Bay.