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August 17, 2023 by ash

Things are looking up with Hervey Bay Property Market Update 1st Half of 2023.

It is estimated that Hervey Bay’s median house price in Q1 2023 will reach $608,750 and its median unit price will reach $419,000. This represents a 1.5% annual increase for houses and a 7.4% annual increase for units. The median house price for the quarter from Q4 2022 to Q1 2023 grew at a slower rate, 1.0%, and the median unit price slipped by 2.0%. This indicates that the cash rate increases have been reflected in the market. Within the last 12 months, sales declined by -53.7% (to 239 houses) and -35.1% (to 96 units), indicating an undersupply of stock.

As a result of the rapid swing in vendor discounts between Q4 2021 and Q4 2022, the average vendor discount for both types of properties has been -3.2% for houses and -2.0% for units. In the past three quarters, average vendor discounting has demonstrated a shift in market conditions in favour of buyers.

Compared to Brisbane Metro (3.7%), Hervey Bay had a 4.1% house rental yield in March 2023. In the past 12 months, the median rent for houses in the area increased by 6.0% (to $530 per week) and the number of houses rented increased by 35.9% (to 352). In Q1 2023, the average number of days on the market stayed at 23 days. The same pattern can be observed in the rental market for units in Hervey Bay, confirming its resilience.

Investing in 2-bedroom houses has provided investors with annual rental growth of 17.6%, achieving a median rent of $400 per week.

In March 2023, Hervey Bay had a vacancy rate of 1.3%, slightly above Brisbane Metro’s average of 0.9%. Investors may have capitalised on a tight rental market to drive up vacancy rates in Hervey Bay over the past 12 months, but it is still below the 3.0% benchmark set by the Real Estate Institute of Australia. Due to slower house price growth over the past quarter (Q4 2022 – Q1 2023), an investment environment has been conducive, especially in terms of affordability.