QLD Hervey Bay is it Finally Picking up?

Coastal areas star as Queensland's double-digit growth suburbs are revealed: REIQ

Nice to see a Hervey Bay suburb in the top 10 here - Dundowran Beach up 21% over the year.

'REIQ CEO Antonia Mercorella said while many headlines predicted doom and gloom for the property market, the reality was very different with many markets in Queensland performing exceptionally well.

“A total of 68 suburbs throughout Queensland have delivered double-digit growth over 12 months, which is a really strong result,” Mercorella said.

“And there are m any more suburbs delivering strong single-digit growth. It’s a great market to be in at the moment.”'​

Very positive for Queensland - just gotta keep it up!

 

If you look at the stats on REA.com.au , it looks as though prices were the same two years ago , dropped and have now rebounded . Probably a few cheaper houses selling last year and some more expensive ones this year .

Cliff

 

The rental market in Hervey Bay is the strongest it's been for the last decade.

Vacancy rate is now under 2% and subsequently rents are rising strongly.

Also plenty of bigger sales occurring (above 600K).

So Sydney and Melbourne and many other cities and towns are experiencing a major slowdown but Hervey Bay will most probably buck the trend over the next 5-10 years and thus perform comparatively strongly.

Neither the Gold Coast nor the Sunshine Coast are cheap either.

So Hervey Bay's relative affordability, lifestyle and improving infrastructure and amenities will continue to attract people in droves in the coming years.

 

Two new manufacturing plants for the Fraser Coast

Huge economic injection for region - Media releases

 

Corelogic-Regional-property-market-performance

Queensland
Townsville was once again the only region to see values fall for both houses and units, down -1.3 per cent and -3.9 per cent respectively.

The largest increase in house values was seen across the Sunshine Coast (7.7 per cent), followed by the Gold Coast (4.3 per cent), Wide Bay (1.7 per cent) and Cairns (1.4 per cent). Looking at units, the Sunshine Coast saw the largest increase in median unit value (5.3 per cent), followed by the Gold Coast (2.8 per cent), while median unit values across Cairns (-0.7 per cent) and Wide Bay (-0.6 per cent) fell over the year.

Dwelling sales were down in four of the five Queensland regions over the year to August 2018 with the Wide Bay region once again the only location to see an increase in home sales (2 per cent). Looking at the Queensland rental market over the 12 months to September 2018, advertised rental rates across the Wide Bay remain in line with one year ago for both houses and units, while Townsville houses have also seen no change. The largest increase in rental rates for houses was seen across the Gold Coast (4.8 per cent), while for units, Townsville saw the largest increase (3.7 per cent).

 

I'm up at Maryborough working on the renovations....
What I see are some changes (in outlook) but some things are still the same.
The big change is the number of workers from NSW coal coming up into this area and waiting for the Galillee Basin project works and other projects to start.
Much fewer rentals (only 55 advertised in M/boro area) and a higher rent price, so things are tightening up.
Homes are selling very fast - one nearby sold in 3 weeks with just one open house.
No cheapies left unless termite infested wrecks...
The renovation market is starting to boom (for this town). Lots of money being spent on the old houses. Shortages of renovation material and a good second hand market.

Still no real improvement with jobs growth...I have heard 60% of workers in Maryborough live at HB...constant traffic on that road.
These new projects are stalled at State and local govt levels - same, same problems with a rubbish State govt and local council that should be under administration - resistance to change is strong!
I am envious of what Jack Dempsey has achieved for the Bundaberg region.....and am hoping some star will emerge in council here....
The council is all HB-centric and has missed out on growth to Gympie and Bundaberg.

The good news is the Bruce Highway will be made dual lanes up to Maryborough starting next year (subject to elections of course)
And we still have the best weather in Australia....

 

Regional Queensland property prices rising: Terry Ryder

"Beyond these South-East Queensland areas, the locations showing most signs of rising are the Fraser Coast, Cairns, Toowoomba and the highly-promising Townsville market, where over $25 billion in new investment is targeted.

The Fraser Coast region, centred on Hervey Bay, now has several rising suburbs, with Torquay and Scarness the standouts. Toogoom, Dundowran and Scarness have all recorded strong price uplift."​

 

Hervey Bay now in the rising market zone of the HTW Property Clock at last.

https://storage.googleapis.com/htw-...htw-month-in-review-june-2019_residential.pdf

"The Hervey Bay market is still improving with
continued activity across most asset classes.

House and land packages in the estates generally
priced below $450,000 are appealing to a mix of
owner-occupiers and investors. The relativity of
prices within some estates is becoming a concern
with a broad range of cost for a similar product.

Vacant land prices appear to have improved,
especially along the Esplanade with a number of
sales now over $500,000 for quarter acre lots
with views.

The rental vacancy rate remains tight which is
appealing to investors in the mid-range asset
class. Gross returns in the order of 5% are
achievable.

...Looking forward to the next six months and hopefully
continued growth in all asset classes."​

 

I think the clock is nonsense, but I agree Hervey Bay's got a good future. It's a prime retirement location, very attractive to cashed up retirees.

 

I'd go Brisbane (or the Gold Coast for that matter) over Hervey Bay any day of the week.

 

based on what?
if a development block.in hervey bay is the same price as an average house in outer brissy then why would you choose the briabNe house?

 

I prefer more predictable and dependable markets...and where there's a critical mass of people/population and growth drivers.

 

I can get some listing and get back to you.

 

Hervey Bay market continues to improve: HTW residential

"The Hervey Bay market is still improving with continued activity across most asset classes, according to a recent Herron Todd White (HTW) residential report.

The report notes that house and land packages in the estates generally priced below $450,000 are appealing to a mix of owner-occupiers and investors.

The relativity of prices within some estates is becoming a concern with a broad range of cost for a similar product.

Vacant land prices appear to have improved, especially along the Esplanade with a number of sales now over $500,000 for quarter acre lots with views.

The rental vacancy rate remains tight which is appealing to investors in the mid-range asset class. Gross returns in the order of 5% are achievable..."​

 

Hervey Bay will always perform poorly in comparison with investment-grade pockets of inner city and middle ring Brisbane, Melbourne & Sydney.

Supply and demand. There is huge amounts of land in Hervey Bay undeveloped, ready to go. Hundreds of house and land packages to be sold.

Fully built out suburbs in our 3 major capitals, where land is scarce and demand is huge in and around major amenities, multiple employment hubs and high-income jobs are where you will see the strongest performance over the next 10-20 years. As always the case. Same old story.

 

I guess I should have been buying those sub-$500K houses 2min walk from the beach with yields between 5-6% in Sydney instead Capital city maxis - yawn...

 

IMO, focusing on capital growth as opposed to rental yield is a far superior strategy, unless you are close to retirement phase.

The lenders limit how much we can borrow, so it's important to ensure we have our money working hardest for us in terms of portfolio growth, as opposed to getting $200 cash per week total in the hand (after taxes, expenses etc). $10,000 extra cash flow per year, with little to no growth isn't going to make us wealthy.

However a portfolio that grows in value by $200,000 p/year on average will.

What would you prefer p/annum?
$0 growth + $10,000 cash flow
or
$200,000 growth minus $35,000 cash flow (5 properties x $7,000 per property on average)

On top of this, because you are buying in high capital growth areas, your rents naturally increase over time because of the demand, therefore you end up neutrally geared or positive after 5-10 years anyway.

No brainer for mine.

 

Hervey Bay's affordability and coastal lifestyle drive population growth: HTW residential

"The Fraser Coast population continues to increase at a slow, steady pace with the years between 2015 and 2018 fluctuating at between 1.16% and 2.03%, according to the latest Herron Todd White (HTW) residential report.

The report notes growth projections for the Fraser Coast population have been forecast to increase from 108,543 in 2019 to 147,099 in 2036, equating to an overall 35.52% rise and an additional 22,800 dwellings.

"Recent migration trends have been led by retirees, as well as families of both young and older parents," the valuation firm said.

"Affordability is seen as a major driver for population growth with particular focus on the coastal lifestyle," the valuation firm added."​

 

Hervey Bay named world’s first Whale Heritage Site

"HERVEY Bay has been crowned the world’s first Whale Heritage Site in a massive boost for Queensland tourism.

The historic decision was announced in Hervey Bay this morning at the annual World Whale Conference being attended by more than 100 conservationists, scientists and whale watch operators from around the globe.

Fraser Coast Mayor George Seymour said Hervey Bay’s recognition as the world’s first Whale Heritage Site was a significant coup that would turbocharge the tourism industry and inject millions of dollars into the region’s economy."​

 

Yes Hervey Bay has definitely turned the corner.

But every city in Australia experiences periods of growth, decline and stagnation (have a look at the Australia-wide 30 year data).

So it shouldn't really be a surprise that Hervey Bay....which has been quiet for many years...is now picking up on the back of strong population growth and less available land near the water.


Regional revival: The QLD towns where home values are rising