Hervey Bay property prices drastically increase as the city continues to shine as one of the Fraser Coast’s real estate crown jewels, with plenty of properties selling within just days of being placed on the market. Hervey Bay property prices have seen increases of more than 50% in some cases.
Entry Level Hervey Bay Property Prices Soar
Brian Thompson, the senior broker at Property Brokerage, said that finding cheaply priced, entry-level property in the gorgeous coastal community was becoming increasingly difficult, with the typical starting price of $450,000 for a basic three-bedroom, single-bathroom home being the norm rather than the exception. Four-bedroom house and land packages, that were extremely popular were priced at about $350,000— first home buyers that qualified saved were also eligible for up to $45,000 in government grants and rebates available bringing the final price down even further. $25,000 builders grant and local council $5,000 grant was available to other buyer types so long as they qualified.
Fast forward to 2022, and new builds are far and few between, although there are still plenty of future Hervey Bay property developments in the pipeline. These new builds tend to be at a cost of $500,000 upwards for a basic new house and land package. Brian says that he has seen some of the house and land packages that he originally sold only one to two years previously come back onto the Hervey Bay market over the last three months (December 2021-February 2022)— achieving a sale price of above $600,000.
Do keep in mind, that many of these homes have had virtually no improvements done prior to selling, but scarcity and covid drove the price extraordinarily upwards, especially as more and more cashed-up buyers from Sydney, Melbourne, Brisbane, Sunshine Coast, and Gold Coast continue to move into the area. Will the bubble burst?
Rising Hervey Bay Property Prices Result in Huge Rent Increases
Likewise, Maryborough and Hervey Bay rental properties have also been afforded high increases in weekly rents payable with demand overtaking supply for a variety of different reasons. Australia’s rental market has heated up significantly with statistical data confirming that rental properties in capital cities across Australia have seen a 3.4% price increase over the final quarter of 2021.
Domain’s latest Quarterly Rent Report— this stark increase parallels to a new set of record-high prices in Australia and an annual growth of 7.4 percent which is the largest yearly increase since 2009.
The average rental house in Australia was $499pw December 2021 in comparison to $465pw December 2020
“Unsurprisingly, given the substantial levels of interstate migration it has experienced since the pandemic began, Brisbane topped the charts as the capital city with the largest year-on-year growth for rental house prices.” — Domain
According to Brian, “The most difficult problem agents currently face is securing enough properties to sell to both new and any buyers that may have missed out on a property that they liked. Many homes are selling almost immediately after going online, or soon after the first open house inspection.”
Hervey Bay Demographics
The demographics of Hervey Bay have shifted in recent years, with the city being well known for attracting mostly retirees but fewer family households. Nowadays, Hervey Bay is still very much a retirement haven, but the area is also seeing a more balanced picture as younger people, and more households with families are choosing to relocate. Maryborough is also becoming a popular choice for people that simply cannot afford to buy in the Bay due to the new higher Hervey Bay property prices. Maryborough is also on the cusp of a mini-infrastructure boom, which will certainly underpin jobs growth and real estate activity over the next few years.
Fraser Coast / Drivers of Population Change
Hervey Bay Future Housing Supply
With a huge supply of residential land available, no doubt housing and population outcomes across the entire Fraser Coast region will be affected with significant supply available in Hervey Bay- especially in the Dundowran – Nikenbah and Craignish – Dundowran Beach Growth Corridors. An anticipated 17,990 new dwellings are estimated to be built in the forecast period, with the population forecast to reach 138,350 by 2041. Looking to buy? Secure a block now before Hervey Bay property prices increase again.
Additional Reading:
Fraser Coast Government / Final Insights into the Future of Fraser Coast
Fraser Coast / Drivers of Population Change
Much of the previous activity was driven by out-of-town property investors as well as local mum-dad investor types, but now we’re seeing more owner-occupiers looking for something secure post-covid. However, there appears to still be quite a bit of investor inquiry. While Hervey Bay property prices continue to escalate, rest assured that buyers will continue to flee for they love our laid-back lifestyle. And Hervey Bay is still exceptionally good value.
Hervey Bay Laid Back Lifestyle
Hervey Bay’s all about ‘lifestyle’— attracting not only tourists that have regularly holidayed in the friendly coastal city but also those that are no longer interested in living in covid-struck larger suburban city neighbourhoods, especially after numerous, lengthy bouts of lockdown.
People simply want to get away— to go out of town. They’ve been unable to travel abroad because of the COVID crisis, and many are prioritising themselves and investing their money in something that is secure. ie: bricks and mortar.
For cashed-up southern buyers, migrating to a beachfront or Esplanade property may be well within reach due to great affordabilty in Hervey Bay by comparison to where they have moved from. For many others, there is also the option to buy in any of the newer property developments within the city that are all conveniently just minutes from our gorgeous beaches, shops, hospitals, and public or private schooling options.
For those people that enjoy acreage living or a larger block, there are plenty of affordable choices throughout the entire region, especially in and around River Heads, Booral, Wondunna, Urangan, Dundowran, Dundowran Beach, Craignish, and Toogoom.
“The close proximity to Brisbane and Hervey Bay’s particular laid-back appeal are also both huge pluses,” Brian remarked. A property search for houses for sale Hervey Bay $500,000 – $600,000 using Domain or RealEstate.com will return plenty of results including beachfront homes and units as well as a good selection of suburban properties. These results confirm that like the rest of the country, Hervey Bay property prices have indeed soared.
Although it’s good news for sellers, for buyers, unlike just two years ago, when people searched for houses for sale Hervey Bay under $350,000 there is now very little available in that price bracket, except for the odd two bedroom unit or vacant land.
Likewise, the Maryborough median house price has also risen dramatically by in excess of $50,000 to $100,00 in many cases. The property prediction 2021 – 2022 overall price increases and migration from other states and larger cities have significantly impacted regional housing Hervey Bay house prices as well as exorbitant rental prices.
Get In Touch
Brian Thompson and Tina Bettles are your go-to property specialists if you have a property in the Hervey Bay area that you want to sell. For those with homes in Maryborough, Toogoom, or Burrum Heads, our broker Sean Coulton will happily assist you.
Are you looking to sell now and take advantage of increased Hervey Bay property prices? None of us can 100% guarantee what the future property market will look like but we do know that the banks are tightening up on lending, interests have risen and the market may slow down.
Now is the best time to sell. That’s right, get in before Hervey Bay property prices start to drop.
*Please don’t hesitate to contact any of our professional Hervey Bay Maryborough agents via the information provided below. Or call our office directly on 07 4125 6692
OUR BROKERS
Brian Thompson Ph: 0438 132 215 / Email: sales@propertybrokerage.com.au
Tina Bettles Ph: 0481 158 974 / Email: tina.bettles@propertybrokerage.com.au
Sean Coulton Ph: 0447 389 260 / Email: sean.coulton@propertybrokerage.com.au
