Hervey Bay property market on target
RENTAL vacancy rate data has revealed a recovering market in Hervey Bay.
Real Estate Industry Queensland Fraser Coast zone chair Damien Raxach said Hervey Bay residential vacancies tightened sharply from 4.2 percent to 2. percent, but had a history of large fluctuations since 2010.
"While the Hervey Bay rental vacancy rate has always traditionally shown great volatility, there is no underlying reason we are aware of,” Mr Raxach said.
"The rate recently has appeared to increase as many new developments release new stock, much of which is purchased by investors as a girth of similar properties are purchased then released to the market at the same time.
"It is inevitable that it will be harder to find that number of new tenants thus leaving houses empty for longer.”
Mr Raxach said the rates were now healthy, and could be from tenants becoming home owners.
"Low interest rates and sizeable government incentives, coupled with packages where little or no deposit is required has made home ownership very obtainable for many tenants,” he said.
"In the short term at least, this could be seen as a market recovery, but it is an unsustainable long term goal as grants end and interest rates rise, causing mortgage distress for many tenants that were tempted in to home ownership they could not really afford.
"If vacancy rates are decreasing this is seen as a market recovery in real terms as supply of dwellings is meeting demand.
"Construction is occurring at a sustainable rate and property is selling/renting in short time frames.”
In REIQ's Queensland Market Monitor released in March 2017, the Fraser Coast was reported as having good news on the horizon, with the proposed $300 million Colton Coal mine near Maryborough..
"Once the mine reaches operational stage, it is expected to create about 120 jobs for the region and boost economic development,” the report said.
"The Fraser Coast could become the renewable energy caption of Queensland over the next five years.
"Eco Energy World Australia proposes a $280 million renewable energy facilitywhich could generate 150 construction jobs and 11 part-time jobs when operational.”