Hervey Bay is a rising market: HTW

Hervey Bay is a rising market: HTW
Hervey Bay is a rising market: HTW

The coastal city of Hervey Bay in Queensland is a rising market and expected to deliver steady market conditions for residential property in 2016, according to Herron Todd White's property clock for March, which also discusses gentrification. 

Staying ahead of the gentrification curve can prove profitable to property investors, say HTW.  

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Hervey Bay is a rising market: HTW

The year ahead will see stable supply and demand across the region. Sub $300,000 stock is predicted to firm with the lack of housing in this price range and improved rental returns driving prices slightly higher. The move towards smaller lots sizes (in the range of 350 square metres to 500 square metres) is now encouraged by Council with many new estates currently being developed adopting this higher density format.

Unit development is considered to be imminent in the short to medium term, with very little new stock being offered to the market after absorption of an oversupply of units. The most popular unit style which has shown to be well received by buyers in recent times is the villa and townhouse unit, as opposed to high rise development.

Building activity has significantly increased over the past six to twelve months in Hervey Bay. There are currently over eight new estates being developed, mainly next stages of existing estates, with some new estates. 

Suburbs of Urangan, Wondunna, Kawungan, Urraween and Pialba have absorbed most of this activity, with many developers selling their proposed turn-key dwellings off the plan to southern interstate investors. Prices range between $330,000 and $400,000 for most properties, with the majority of lot sizes between 350 and 700 square metres.

Features typically encompass an above average standard and include stone bench tops, split system air-conditioning and landscaping. Higher density living with smaller lot sizes (up to 500 square metres) is now accepted (and perhaps encouraged) by local council and has been well received by the market. 

The Hervey Bay Housing Affordability Project is an initiative by Council and Federal Government which offers $12,000 grants for new land or new house and land packages. The incentive is reported to expire on June 30, 2016 which could result in a slowing of sales to first buyers. It is hoped the project may be extended to stimulate economic growth and support local employment in the construction industry.

The prestige property market has improved over the past 12 months with more sales in the higher price range (above $700,000) than previous years. While property prices are not considered to rise in this market in the short term, sales are expected to continue at this rate with more medical staff moving to the area due to a new private hospital and supporting medical industries. There is currently an abundance of higher priced stock on the market and vendors have to be flexible in order to finalise a sale.  

The steady rise in rental return over the past eighteen months has been stimulated by the ongoing influx of personnel for the new medical facilities in Urraween. A tenant can now expect to pay between $360 and $440 for a new four-bedroom, two-bathroom dwelling with double lock-up garage.

To date, there has been no significant rise in values for older existing stock, however, higher priced property up to $700,000 has been selling within shorter selling periods. The absorption of excess unit stock has now concluded, with new unit development foreseeable and welcomed in the near future.  

To illustrate the point, here's an example picked by Property Observer.

 Hervey Bay is a rising market: HTW

A three-bedroom apartment at 506/569 Charlton Esplanade Urangan sold recently for $470,000.

 

Tags: 
Residential Market Hervey Bay

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