Hervey Bay property values expected to flatten during coronavirus pandemic: HTW residential
The main economic impact in the next three to six months for the Fraser Coast region will be the flow on effects from the Coronavirus to business and society, according to a recent Herron Todd White (HTW) residential report.
The current COVID-19 epidemic is going to have a negative impact on key drivers, so it will be interesting to see what impact this may have on the property market in the short to medium term, the valuation firm said.
"Confidence is likely to be subdued for both owner-occupiers and investors in residential property with the public expected to be cautious and perhaps just wait out the situation until the worst has passed," the valuation firm said.
The report suggests values are likely to flatten as demand reduces with selling periods extending up to six months.
Properties available for rent are very scarce in Hervey Bay at present, with one agent reporting that their business has been reduced to only one listing for a single residential dwelling and three units.
"Due to the shortage, higher rents can be achieved with this trend set to continue in the short term," the valuation rim said.
A two bedroom unit in Scarness has been listed for rent with a price of $350 a week.
The 3/324 Esplanade unit (pictured below) is positioned on Scarness Beach and surrounded by sidewalk cafes and bars.
It features open plan living/dining, two bathrooms and secure parking.
Given that the property market is in uncharted territory with regard to the impact of the Coronavirus, it is unknown at this point the extent of possible high unemployment from the potential closures of small businesses and negative effects from minimal tourism.
The increase in medical related employment over the past five years for the region will be of benefit for property owners with more reliable employment in this sector and high demand for medical services.
A four bedroom house in Urraween has recently been sold for $480,000.
The 4 Songbird Place home (pictured below) is situated close to hospitals, shopping centres and schools.
It features open plan kitchen and dining area, media room, and air conditioned living room.
An increase in consumers seeking options with mortgage brokers and banks for existing finance is expected with uncertain times ahead.
Prior to the arrival of the Coronavirus crisis, the Fraser Coast was looking to benefit from the projects due to get started from the Hinkler Regional Deal worth $260 million, the report noted.
The deal was made between the federal government and local councils with projects that include $40 million for the CBD redevelopment, $24 million to flood-proof roads, $9.2 million for the redevelopment of the Hervey Bay Airport, $7.7 million for the Boundary Road extension and $7 million to establish a new hospice in Hervey Bay.
"Going forward, it is hoped that these projects will still commence this year pending the current international developments," the valuation firm said.