Hervey Bay Property Market Update 2nd Half 2024
Hervey Bay, offers a relaxed coastal lifestyle with stunning beaches and year-round perfect weather, making it an ideal place for outdoor enthusiasts. Additionally, it’s known for its affordable living and welcoming community, providing a great environment for families and retirees alike.
Property Trends
In Q3 2024, Hervey Bay recorded a median house price of $680,000 and a median unit price of $490,000. This is an annual (Q3 2023 – Q3 2024) price growth of 9.6% for houses and 11.4% for units. Comparing Q3 2023 vs Q3 2024, total sales dropped by -16.8% for houses (to 308 sales in Q3 2024) and -14.0% for units (to 111 sales in Q3 2024). Price growth and less sales suggest a clear undersupply in the market, creating a buffer against higher interest rates. Now is an ideal time for owners to capitalize on their investments, especially as there are no new stand-alone houses planned for 2024.
Project Development
Hervey Bay is set to see approximately $265.5M worth of new projects commencing in the 2nd half of 2024. Although there are some residential projects planned, none brings new stand-alone houses to the market. This has the potential of pushing up house prices even further.
Rental Market & Growth
House rental yields in Hervey Bay was 4.0% in September 2024, slightly higher than the Fraser Coast LGA (3.9%) and Brisbane Metro (3.2%). This was paired with a 9.1% increase in median house price in the past 12 months to Q3 2024, at $600 per week. The number of houses rented declined by -1.4% in the past 12 months, to 343 rentals in Q3 2024. The same pattern, of higher rent and less properties rented, can be seen in the unit rental market. This confirms there is an undersupply of rental properties in Hervey Bay, which is beneficial to investors.
Vacancy Rates & Property Investment
Hervey Bay recorded a vacancy rate of 0.8% in September 2024, on par with the Fraser Coast LGA’s 0.8% average, but below Brisbane Metro’s 1.1% average. Vacancy rates in Hervey Bay decreased slightly in the past 12 months, signalling an even tighter rental market. A 0.8% vacancy rate is well below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, suggesting quick occupancy of rental homes. This is a conducive environment for investors.
