The short answer to that is yes, our property market is still very healthy. We do not have the frenzy we were seeing during Covid, but we still have very good growth. House prices are going up, rental markets are tight, land supply is still lagging behind demand and builders are still busy. These are all key indicators we have a healthy market.
So, let’s put some facts around what we all see and feel. At the end of June, according to REIQ, our rental vacancy rate was 1.3%, which is still very tight, but not as tight as at the Covid peak of 0.6%.
As far as house prices go, we had massive jumps during Covid, up around the 75% mark over 3 years. A lot of this was catch up due to a decade of undervalued property in Hervey Bay. Over the last 12 months, this has settled a bit but we still have very healthy growth rates. According to realestate.com.au, here are some suburb trends for houses over the last 12 months:
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Pialba – Median House price $555,000 up 14.4% over 12 months, apartments $360,500 up 6.2%
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Scarness – Median House price $525,000 up 2.9% over 12 months, apartments $470,000 20.2%
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Torquay – Median House price $585,000 up 4.9% over 12 months, apartments $400,000 up 14.3%
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Urangan – Median House price $608,750 up 9.2% over 12 months, apartments $451,000 up 17%
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Urraween – Median House price $660,000 up 14 % over 12 months, apartments $455,000 up 3.4%
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Kawungan – Median House price $616,500 up 10.5% over 12 months.
The big winner over last 12 months has been Nikenbah, with the median house price at $835,000 up 42%.
The trends are showing growth in apartments closer to the beach and amenities and in the housing market, quality estates are seeing the best growth.
Overall, the market is very healthy with sustainable growth and, based on the commercial infrastructure and population growths happening currently, we should continue to have a healthy market in the foreseeable future.
with GLEN WINNEY of FCPIA
