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Hervey Bay Property Watch Q1 2014

The following Property Watch report is the result of an investigation into the historic and current market trends of the Hervey Bay Area encompassing the suburbs of Urangan, Torquay, Scarness, Pialba, Point Vernon, Eli Waters, Urraween, Kawungan and Wondunna. Located three hours north of Brisbane by road, and just across the bay from beautiful Fraser Island, Hervey Bay is one of Australia's favourite tourist destinations. There is an air of confidence being experienced in the Hervey Bay Area housing market with the six month period to November 2013 registering 832 transactions, a nine per cent increase on the five year average. The Hervey Bay Area median house price closed the November 2013 period with a median price of $312,000 – nearing the price points that were witnessed prior to the economic uncertainty spurred by the Global Financial Crisis.

Overview Hervey Bay House and Unit Sales Cycle House Sales

Unit Sales

House Median

House Price Point Chart

Unit Median

2011 NOV

1,200

At least $500,000

$350,000

2012 NOV

2013 MAY

2013 NOV

7%

4%

4%

6%

3%

294

1,000

$323,750

$250,000

185

216

600

$200,000

155 111 123

126

166

107

400 702

87

$100,000

520

517 472 494

200

405

314

Half year period

$50,000

2014 FEB

2013 FEB

4%

$400,000 to $449,999

6%

$350,000 to $399,999

2%

7%

14%

$300,000 to $349,999

3%

28%

6%

6%

4%

10%

7%

12%

13%

13%

13%

33%

26%

28%

31%

470 458

2013 AUG

2012 FEB

2012 AUG

2011 FEB

2011 AUG

2010 FEB

2009 FEB

2009 AUG

2008 FEB

2008 AUG

2007 FEB

2007 AUG

2006 FEB

2006 AUG

2005 FEB

364

429 398 350 363

$0

2005 AUG

2004 FEB

2004 AUG

Heading 0

102

80

653

605 608 626

568

2010 AUG

605

$150,000

100

148

828

109

Price point

$262,500

269 233 211 209

Median sale price

800 220

$450,000 to $499,999

$300,000

267

Number of sales

2012 MAY

$400,000

$250,000 to $299,999

23%

Less than $250,000

27%

18%

0%

28%

15%

20%

26%

19%

40%

29%

11%

60%

13%

80%

100%

Proportion of total sales

Who’s in the market? There is a healthy mix of buyers active in the Hervey Bay Area with first home buyers emerging as they take advantage of record low interest rates and comparative affordability. On the other hand, sellers are looking to move on and take advantage of a much more active market, with shorter selling time and better prices. Investors are forever present in the markets of the Fraser Coast, as rental demand remains high in neighbouring mining localities,

the thrifty investor may look to relocate to capitalise on affordability and escape the shifting demographic the resource sector may bring in order to take advantage of lifestyle amenities on the Fraser Coast. PRDnationwide does not give any warranty in relation to the accuracy of the information contained in this report. If you intend to rely upon the information contained herein, you must take note that the information, figures and projections have been provided by various sources and have not been verified by us. We have no belief one way or the other in relation to the accuracy of such information, figures and projections. PRDnationwide will not be liable for any loss or damage resulting from any statement, figure, calculation or any other information that you rely upon that is contained in the material. Prepared by PRDnationwide Research © All medians and volumes are calculated by PRDnationwide Research. Use with written permission only. All other responsibilities disclaimed. © 2014


Hervey Bay Property Watch Q4 2013

Hervey Bay Median Rent 2011 Dec

2012 Dec

2-Bed House

The rental market in the Hervey Bay Area has performed increasingly well over the past three years experiencing rental increases across all the dominant rental dwelling types. The Hervey Bay Area housing rental market is expected

265 280 285

3-Bed House

138 190 171

1-Bed Unit

to continue its strong vein of form with houses providing over 80 per cent of the dwelling options. Similarly, the house rental market has kept parity with unit

315 320 340

median rents and therefore provided the more affordable option for the thirty per cent of Hervey Bay renters.

3,525

“4 bedroom houses witnessed a 6.25 per cent increase over the past twelve months closing 2013 with an asking $340/week rent.”

4-Bed House

220 230 240

2-Bed Unit

270 265 285

3-Bed Unit

255 245 260

2-Bed Townhouse

As there is currently a pipeline of large-scale development projects attracting workers to the Hervey Bay Area, it is expected that as rental demand increases, so will rental prices. With the market seemingly moving in an

300 300 310 400

350

300

250

upward direction with a similar sentiment to the 2006-07 market, it may 200

100

50

0

3-Bed Townhouse

150

Dwelling Type

2013 Dec

230 240 250

represent a solid opportunity for investors to get into the market early.

Median Rent ($)

Development and Jobs $115,000,000 Stockland Shopping Centre Expansion (Urraween) Stockland's Urraween based redevelopment is expected to generate more than 250 local jobs during the 18-month construction program and more than 600 new retail jobs by the time of completion in late 2014. Source: Stockland

$82,000,000 St Stephen’s Private Hospital (Pialba) Australia’s first fully integrated digital hospital will be ready for action by the end of 2014. With assistance from the Federal Government's $47.1 million

Source: Uniting Church

contribution the hospital will expand the current day surgery to a 96-bed inpatient facility.

PRDnationwide does not give any warranty in relation to the accuracy of the information contained in this report. If you intend to rely upon the information contained herein, you must take note that the information, figures and projections have been provided by various sources and have not been verified by us. We have no belief one way or the other in relation to the accuracy of such information, figures and projections. PRDnationwide will not be liable for any loss or damage resulting from any statement, figure, calculation or any other information that you rely upon that is contained in the material. Prepared by PRDnationwide Research © All medians and volumes are calculated by PRDnationwide Research. Use with written permission only. All other responsibilities disclaimed. © 2014

Graphs and tables prepared by PRDnationwide Research. Source: ABS


Research & Consultancy Adding Value to your Investment

About PRDnationwide Research PRDnationwide’s research division provides reliable, unbiased, and authoritative property research and consultancy to clients in metro and regional locations across Australia. Our extensive research capability and specialised approach ensures our clients can make the most informed and financially sounds decisions about residential and commercial properties.

Our Knowledge Access to accurate and objective research foundation of all good property decisions.

is

the

As the first and only truly knowledge based property services company, PRDnationwide shares experience and knowledge to deliver innovative and effective solutions to our clients. Our Services We have a unique approach that integrates people, experience, systems and technology to create meaningful business connections We focus on understanding new issues impacting the property industry; such as the environment and sustainability, the economy, demographic and psychographic shifts, commercial and residential design; and forecast future implications around such issues based on historical data and fact.

Our People Our research team is made up of highly qualified researchers who focus solely on property analysis. Skilled in deriving macro and micro quantitative information from multiple credible sources, we partner with clients to provide strategic advice and direction regarding property and market performance. We have the added advantage of sourcing valuable and factual qualitative market research in order to ensure our solutions are the most well considered and financially viable . Our experts are highly sought after consultants for both corporate and government bodies and their advice has helped steer the direction of a number of property developments and secured successful outcomes for our clients.

PRDnationwide provides a full range of property research services across all sectors and markets within Australia. We have the ability and systems to monitor market movements, demographic changes and property trends. We use our knowledge of market sizes, price structure and buyer profiles to identify opportunities for clients and provide market knowledge that is unbiased, thorough and reliable. Our services include: • Advisory and consultancy • Market Analysis including profiling and trends • Primary qualitative and quantitative research • Demographic and target market analysis • Geographic information mapping • Project Analysis including product and pricing recommendations • Rental and investment return analysis • Competitive project activity analysis • Economic indicators • Social research, including focus groups


Prepared by PRDnationwide Research. For further details contact: Jim McKay Principal PRDnationwide Hervey Bay P: (07) 4125 1900 E: jimmckay@prd.com.au

Angus McLean Research Analyst PRDnationwide Corporate Team P: (07) 3229 3344 E: angusmclean@prd.com.au

Hervey Bay Property Watch 2014 Q1  
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