Hervey Bay sees decline in first home buyer activity

Hervey Bay sees decline in first home buyer activity
Hervey Bay sees decline in first home buyer activity

Hervey Bay has traditionally been an owner-occupied market generally due to its beachside location and affordability, according to the valuation firm, Herron Toddy White.

The boom period of 2006 to 2008 saw investors take advantage of cheap property compared to their local southern markets however some of these initial investors are now local residents.

"There are many different housing options for home owners including villas, townhouses and units close to the foreshore, existing detached housing or vacant land with a view to building their new home," HTW's recent report noted.

Land generally starts from around $150,000, established older housing ranges from $250,000 to $450,000 up to esplanade and beach front property in excess of $750,000.

A three-bedroom house at 43 Ann Street, Torquay (picture above) has recently sold for $265,000, comfortably in the price range that HTW highlights. And it is close to the beach as well.

A three-bedroom house at 53 Hansen Street, Urangan has sold for $270,000. It is close to the beach as well. 

Hervey Bay sees decline in first home buyer activity

New turn key house and land packages generally offering 4-bedroom, 2-bathroom accommodation with a double garage ranges from $375,000 to $500,000 depending on the estate.

Land sizes also vary considerably from the older, traditional 800 square metre to quarter acre block down to 400 square metres in some of the new estates.

Some acre or larger lots are still available however zoning changes have seen quite a lot of these larger blocks now being subdivided, HTW advised.

First home owners were active over the past two years however this now appears to have slowed as a consequence of local government incentives no longer being offered or offered at a reduced level.

Appetite for homes requiring renovation is improving with older beach shack property being prime targets due to location.

The rental market has also been strong for a number of years now with a 4-bedroom home receiving $360 to $400 per week.

"This return has maintained an investor presence in our market.

"Most investor activity is, however, in the new estates which also has tax benefits for new homes."

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First Home Buyers Hervey Bay

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