Hervey Bay Property Market Update 2nd Half of 2022
In Q3 2022, Hervey Bay recorded a median house price of $599,500, and a median unit price of $387,500. This represents annual (Q3 2021 – Q3 2022) median price growth of 19.9% for houses and 25.0% for units. That said, on a quarter-by-quarter basis (Q2 2022 – Q3 2022) median price growth softened by -1.7% for houses and -8.0% for units. This reflects interest rate hikes now translating into the market. Total sales decreased annually and quarterly, with Q3 2022 recording the lowest amount, of 268 (houses) and 69 (units) sales. Current market conditions suggest opportunities for sellers and buyers.
Average vendor house discount between Q3 2021 and Q3 2022 have widened to -2.6%, the highest discount seen in the past 12 months. This is an opportunity for first home buyers, as they can offer below the first list price. Average vendor unit discount remains a premium, however quite close to the first list price, of 0.1%. This is the lowest premium for units in the past 12 months.
House rental yields in Hervey Bay was recorded at 4.4% in September 2022, much higher than Brisbane Metro’s (2.9%). This was paired with a 16.1% increase in median house rental price in the 12 months to Q3 2022, to $520 per week, and a 22.8% increase in the number of houses rented. A similar trend is evident in Hervey Bay’s unit rental market, confirming the area as an attractive more affordable option compared to Brisbane Metro.
4+ bedroom houses have provided investors with +19.2% rental growth annually, achieving a median rent of $550 per week.
Hervey Bay recorded a vacancy rate of 0.7% in September 2022, which is on par with Brisbane Metro’s average. Vacancy rates in Hervey Bay have held relatively steady over the past 24 months, within the 1.0% and under rate. This indicates stability in rental demand and quicker occupancy. These key indicators create a conducive and sustainable environment for investors, particularly with a marginal downturn in median property prices in the past quarter (between Q2 2022-Q3 2022).
