QLD Hervey Bay is it Finally Picking up?

Positive signs for Fraser Coast economy

 

I'm expecting the market to pick up it will just take a lot of time, as there has been a lot of development in the area especially with investors purchasing new stock that has entered the market and caused oversupply. I have an apartment on The Esplanade, Urangan and even though vacancy rates have been increasing, there has also been lots of infrastructure being built, will be great when they build the new marina etc.

 

How to live by the sea for less than $400,000

 

What areas of HB are we expecting to see most growth in the 3 and 4 bedroom houses?

 

Just came back from HB for a holiday, never been to the area so expecting very little given the stigma (one of the highest unemployment rate and social assistance in Australia). Also, I generally find these sort of towns with 50K ish population lacking character and interesting stuff to do (both as a tourist and as a resident). However, I was super pleasantly surprised at HB for the following things:

1) The demographics - Lots of young families in the area and I can see the lifestyle and public parks/amenities would be perfect to raise the kids. Had dinner at 2 separate pubs / RSL clubs on a wkend and there was so many families with young kids, a bunch of 18 yo bday parties, and lots of middle aged people out enjoying themselves. Yes there are quite a few retirement homes around but the stigma of large amounts of retirees and low social demographic doesn't seem to be as common as the stats make it out to be. I also visited after the school holidays so safe to safe the people I saw were all locals and not out-of-towners.

2) The infrastructure. Flow on from tourism from Fraser island is done really well, honestly I am pleasantly surprised as I find Australia is generally not that great at tourism in these type of towns (its generally just a collection of light houses, strawberry farms, and maybe a chocolate /cheese shop thrown in for good measure). The new public hospital (still being built) and private (looks completed) is a good sized probably second tier facility. New private hospitals are also good indicators of confidence in the local population's wealth. There's also what looks like the beginnings of a medical precinct around the hospitals.

3) Retail. There's a few hippy cafes and restaurants along the main esplanade. I was not expecting gourmet honey comb and choc crackles soft serve (there was a fancier name for it) or a lovely open air bar serving tapas overlooking the beach! Maybe they caught abit of the Noosa bug and trying to be more hip? Regardless, all good signs of gentrification. There were also little vacant retail shop fronts.

4) Shiny and new! Not entirely sure of the history area but I was really surprised at how alot of the major facilities (the new stockland mall, tourist centre / fraser island discovery centre, RSl club etc, the hospitals I mentioned above) all seem incredibly new and recently built to fairly good standards.

A couple of "experts" such as Herron Todd and Propertyology have picked HB as a key growth mkt/hotspot. The major downside I can see from an investment perspective is they need to be careful not to release too much of the H&L all at once and flood the mkt with surplus supply. Otherwise, I can see how it will take off!

 

As the demographic continues its shift from retirement to family the demand for the bigger homes will continue to increase I suspect.

 

I would just like to point out while Hervey Bay itself may have a population of around 54000 the results are skewed quite a few properties are in the maryborough electorate are closer to Hervey bay. when looking a population take in Fraser coast as a whole.

Population forecasts | Fraser Coast Regional | forecast.id

 

Good point: the Fraser Coast encompasses a large region from Burrum Heads to River Heads and some inland areas as well.

That said, I'm hearing from people on the ground that its the coastal suburbs of Hervey Bay that are really starting to pick up; people have been priced out of the Gold Coast and Sunshine Coast and thus are buying in Hervey Bay due to its affordability, lifestyle and increasing infrastructure and amenities.

 

Once priced out of the Sunny Coast, the next beach location is Rainbiw Beach but not much there.

Hervey Bay has good infrastructure and should go ahead. But it will be squeezed by Bargara (coastal Bundaberg) which is powering ahead and has a couple of really good beaches.

Both locations should show steady growth.
Marg

 

I live in one of the coastal suburbs a lot more action around now then 12 months ago and new faces.

 

Agreed Both Bundy and Hervey Bay should show some good growth over the next few years.

Bargara is a nice spot.

 

Interesting write up in the local paper recently:

Queensland Sales Director for Burgess Rawson Glenn Conridge said Hervey Bay's property market was drawing interest from southern investors.

"In the first two months of 2018 alone our buyers injected over $2.3 million into the local commercial property market, and I have no doubt these properties will attract competitive bidding at auction this month," Mr Conridge said.

"The property has uninterrupted views from upper levels so its future potential for high-rise development is significant."

It follows the agency selling Maryborough's Ultra Tune for $760,000 last month, The Seafront fast-food kiosk for $720,000 and an Elders/QBE commercial building for $860,000 late last year.

Mr Conridge said Hervey Bay had cemented a "strong appeal" among buyers in recent months due to the 3.1 million visitors the region attracted annually.

Last week, new property figures from the REIQ Queensland Market Monitor revealed the Fraser Coast property market reached its highest median house price in a decade.

Maryborough ranked the best-selling suburb in the region with an annual sale volume of about $200,000.
Esplanade beachfront set to sizzle at auction

 

Can anyone provide insight into what the job market is doing up there?

 

The Area has plenty of work for aged care, hospitals RN Support workers etc I have a few mates that have been working away for the last few years concreting that are now on projects in the area mostly house slabs and drive ways. Plenty of jobs in retail also plenty of people trying to get those jobs as recently the population seems to be a little higher.Like most cities Hervey Bay has quite a few jobs though the wage for most of the jobs would be in low the range. Several real estate agencies looking for property managers if you are in that field.

Edi Downer Maryborough has 70 Million worth of projects in the pipeline:

Maryborough wins with Downer in line for $70M in projects

Colton Coal Mine leases have been approved:

Local jobs loom as Colton gains coal mine leases

500,000-panel solar farm project 300 Workers Needed

300 workers needed for 500,000-panel solar farm project

that is about all I can think of for now.

 

"MORE signs of a boom in the region's housing economy are emerging, with the Fraser Coast property market hitting a ten year high. Figures from the Queensland Government Statistician's Office show about 2236 home sales were made over 2017, the highest point in ten years."

*Article is subscription only access unfortunately, which I don't have

House sales hit ten year high on Fraser Coast.

 

The only prop purchase I have ever done out of my entire prop portfolio without any of my own research / DD was in HB/ Eli Waters ! Eli Waters was named the No 1 suburb out of thousands of suburbs across Aus in 2005 to get the most growth in the following 3 years (predicting to increase by over 150%) by one of the largest prop report / forecast companies (I think it was residex or similar) - had to pay I think over $200 for the report. The worst investment ever for me as the 5 bedder a stone's throw away from the water with a pool has exactly the same value (as per Core Logic) to what we paid over 13 years ago and identical rent ! Never been to HB but have never relied on any prop value forecasting companies since then. In fact there was a special 2 page report by the Chief Forecaster of the company on why Eli Waters would be the best performing suburb..
I haven't seen any changes (just the desktop research) around any of the macro economic indicators that suggest it is doing anything now or expected to in the near term. Perhaps when/ if AUD drops by 15%-20% making it a lot more economical for o/s tourists to be thronging there for whale watching but until then unless significant new employment opportunities open up, I remain bearish for its near term prospects.
Harris

 

A little royal fanfare can't go astray for raising the area's profile:

ROLLING COVERAGE: Every step of Fraser Island royal visit

 

What's happening in HB? My property is just increased $25/w this year which is surprisingly great for me.

 

Given the aging population in the area - I have FTFY:
indicators of confidence in the local population's health needs