Hervey Bay Area Property Factsheet 1st Half 2019 OVERVIEW The City of is located approx. 289km from the CBD. There were no auction sales in Q1 2019, which indicates a preference for private treaty sales. That said previous auction sales over the past six quarters have indicated a sustainable level of auction clearance rates in the Hervey Bay* area, averaging at 22.7%. This is higher than the Fraser Coast LGA average of 16.6%,

CHANGE FROM HALF YEAR LAST YEAR

House Sales MARKET CONDITIONS*** House Median Price House Rental Price Hervey Bay*, which for this research factsheet is represented by all suburbs in the postcode 4655, recorded a median house price of $363,000 and $270,000 for units in Unit Sales Q1 2019. These figures represented an annual (Q1 2018- Q1 2019) price growth of Unit Median Price 3.7% (house) and 4.5% (units). Compared to the Hervey Bay* 2nd half 2018 Research Factsheet, which reported an annual (Q3 2017- Q3 2018) median price change of 7.8% Unit Rental Price (house) and -0.4% (units), houses in Hervey Bay* have become more affordable while units have strengthened in value. FUTURE DEVELOPMENTS**

In comparison, Fraser Coast Regional Local Government Area (LGA) recorded a lower Hervey Bay* is set to invest approx. $82.8M of future developments that are median house price of $330,000 in Q1 2019, signifying a relatively stable market. st Median unit price in Fraser Coast Regional Local Government Area (LGA) were at scheduled for construction in the 1 Half $270,000 in Q1 2019, with an annual price strengthening of 5.9%. This suggests that of 2019. Majority of the development that the property market in Hervey Bay* reflect premium median sale prices and further value is being spent on commercial capital growth potentials when compared to the LGA. projects ($57.7M or 69.6%), followed by residential ($23.1M or 27.9%), and Average vendor discounting remained relatively stable for houses over the past 12 Infrastructure ($2.0M or 2.5%). months to Q1 2019, at -5.2%. This creates an ideal time for buyers to continue to benefit from discounts towards their property purchase. On the other hand, average A focus on commercial projects is key for vendor discounting for units has tightened, from -5.2% in Q1 2018 to -4.6% in Q1 2019, Hervey Bay* as it stimulates economic which suggests that buyers are willing to offer closer to the first list asking price. This activity and create local jobs, resulting in indicates an ideal time for unit sellers, to capitalize on lower discounts and 4.5% capital spill-over benefits to the property market. growth on median price. Significant commercial project due to commence in Hervey Bay* in the 1st Half Over the past 12 months to Q1 2019 median house rental price recorded an annual of 2019 are the Urangan Commercial strengthening of 1.4% to $355 per week, whereas median unit rental price remained Centre ($15.0M) and The Anchorage stable at $300 per week. Investors are currently benefiting from low average days on Urangan ($15.0M). the market, for both houses (19 days) and units (20 days). Vacancy rates in Hervey Bay* have declined from 2.5% (June 2018) to 1.7% (December 2018). Further, Examples of key infrastructure projects investors are benefiting from high rental returns for house (5.0%) and units (5.8%). include: Airport Avion Development Pavement ($750K) and Boat Harbour Dr FRASER COAST REGIONAL GROWTH Pavement ($400K), both of which located in Urangan. This will improve liveability 700 $350,000 aspects for current residents. 600 $300,000 A total of 51 units and 244 Lots are 500 $250,000 planned for Hervey Bay* in the 1st Half 400 $200,000 2019. Examples of residential projects 300 $150,000 include: Madsen & Chapel Road Median Price Median Residential Subdivisions ($6.6M,146 Number of of Sales Number 200 $100,000 Lots), Boat Harbour Drive units 100 $50,000 ($5.0M,28 Units) and Parklands at Bayridge Final Stage ($3.3M, 27 Lots). 0 $0 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 *Hervey Bay data and key indicators represent market conditions in postcode 4655. **Estimated values are provided by the relevant data authority and does not reflect commercial and/or re-sale value. House Unit Vacant Land Source: APM Pricefinder, realestate.com.au. © Copyright PRDnationwide 2019. Median House Price Median Unit Price Median Land Price AVERAGE VENDOR DISCOUNT* AVERAGEAVERAGE VENDOR VENDOR DISCOUNT DISCOUNT AverageAverage vendorvendor discountdiscount reflectsreflects the the House Unit averageaverage percentagepercentage differencedifference between 0.0% betweenfirst listed firstprice list priceand andfinal finalsold soldprice . A price.lower Apercentage lower percentagedifference differencesuggests -1.0% (closerbuyers toare 0) willingsuggeststo buyerspurchase are close to willingthe first to purchaseasking priceclose toof thea firstproperty . -2.0% asking price of a property. - 4.6% - 4.6% - 5.1% - 5.1% - 5.1% - 5.2% - 5.2% - 5.2% - 5.3% - 5.4%

-3.0% - 5.4% MARKET COMPARISON GRAPH - 6.2% -4.0% TheKEY market FACTS comparison UNIT graph provides comparative trend for median price of -5.0% house and units over the past 10 years. Suburbs profiled are chosen based on -6.0% proximity to the main suburb analysed in the factsheet, which is Torquay. The Change from Listing to to Listing Price Sale from Change -7.0% Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019 main suburb is highlighted through a dotted black line graph.

HOUSE MARKET COMPARISON

$500,000

$450,000

$400,000

$350,000 House House Price Median $300,000

$250,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019** Torquay Wondunnna Kawungan Urraween Eli Waters Urangan UNIT MARKET COMPARISON $500,000

$400,000

$300,000 Unit Unit MedianPrice $200,000

$100,000 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019**

Torquay Wondunna*** Kawungan Urraween Eli Waters Urangan***

*Hervey Bay market data and key indicators encapsulates aggregate property market conditions in the following suburbs in postcode 4655. **2019 data is representative of sales up to and inclusive of 31st March 2019, or end of Q1 2019. ***Dashed line in median price graph is due to limited or no sales for the particular period, and is indicative only based on previously known trends. Source: APM Pricefinder. © Copyright PRDnationwide 2019. AVERAGE NUMBER OF DAYS ON THE MARKET* 120

100 HOUSE KEY FACTS Q1 2019 Median Sale Price: $363,000 80 Annual Growth: 3.7%*** Average Days on Market: 89 % Change between First Listed Price 60 and Sold Price: -5.2% 111 110 107 104 87 99 94 93 89 86 40 83 79 UNIT KEY FACTS Q1 2019 Average Days Market on Days Average KEY FACTSMedian UNIT* Sale Price: $270,000 20 : 4.5%*** Median SaleAnnual Price Growth : $785,000 : 107 Annual AreaAverage Growth: Days 11% on Market % Change between First Listed Price 0 Average Days on Market: 36 and Sold Price: -4.6% Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019% Change between First Listed Price and Sold Price: -0.1% House Unit Overall Market Trend

SALES AND MEDIAN PRICES*

900 $400,000

800 $350,000

700 $300,000

600 $250,000

500 $200,000 Median Price Median Number of of Sales Number 400 804 794 762 743 727 $150,000 300

$100,000 200 358

$50,000 100 187 201 149 155 148 94 0 $0 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019

House Sales Unit Sales Median House Price Median Unit Price

*Hervey Bay market data and key indicators encapsulates aggregate property market conditions in the following suburbs in postcode 4655. *Annual growth represents price growth for property transactions between Q1 2018 to Q1 2019 (inclusive). Source: APM Pricefinder, realestate.com.au, SQM Research. © Copyright PRDnationwide 2019. SALES PRICE POINT COMPARATIVE ANALYSIS*

HOUSE PRICE POINT 2017 HOUSE PRICE POINT 2018

6.4% 7.8%5.8%8.3% 9.7%11.1% 6.1% 12.2%11.6% 6.1% 4.5% Less than $249,999 4.5% 5.6% 17.6%15.9% $250,000 to $299,999 3.4%4.8% 17.2%16.5% 7.2% 6.5%4.5% $300,000 to $349,999 7.4% $350,000 to $399,999 9.0% 21.0% 10.9%9.7% $400,000 to $449,999 9.1% $450,000 to $499,999 10.1% 9.9% $500,000 to $549,999 24.4% 27.9% $550,000 and above 26.4% 19.2% 26.9% 17.4% 18.0%17.5% 17.7% 24.1%

UNIT PRICE POINT 2017 UNIT PRICE POINT 2018 3.8% 2.7% 3.1% 3.1% 6.8% 2.5%5.6% 4.5% 7.5% 8.4% 5.3% 5.5% 10.6%6.7% 6.7%15.7% 1.4% 8.3% 9.7% Less than $149,999 10.9% 5.6% 5.6%12.8% $150,000 to $199,999 9.3% $200,000 to $249,999 $250,000 to $299,999 18.4%11.3% 13.1%15.3% $300,000 to $349,999 31.1% $350,000 to $399,999 17.6% 22.9% 27.8% $400,000 to $449,999 9.4% 27.5% 24.9% $450,000 and above 25.2%26.4% 24.2% 20.4%22.3%

KEY IMPLICATIONS - HOUSE KEY IMPLICATIONS - UNIT The Hervey Bay* housing market has remained relatively The highest proportion is unit sales activity recorded in stable in terms of sales price point pattern, with minor 2018 was within the price segment of $200K-$249K. This shifts within each price segment. In 2018, the highest price bracket has increased in sales activity from 27.8% proportion of sales activity was within the lower price in 2017 to 31.1% in 2018. This further confirms a high segment of $300K-$349K price bracket. This price first home buyer activity within the lower price segments. bracket has decreased in sales activity from 27.9% in 2017 to 24.4% in 2018 The upper price bracket of $450K and above has decreased in sales activity, from 8.3% in 2017 to 6.7% in The most notable shift is seen in the $450-$500K price 2018. That said units priced between $350-$400K have bracket, increasing from 4.5% in 2017 to 9.0% in 2018, seen a significant increase in activity, from 1.4% in 2017 which reflects the 3.7% growth in median price over the to 9.3% in 2018. Those looking for affordable options past 12 months to Q1 2019. The level of affordable need to act fast however, as the most affordable price options remained stable between 2017-2018, providing bracket fo less that $150K have shrunk significantly from comfort to first home buyers wanting to enter the market. 9.7% in 2017 to 3.1% in 2018.

*Disclaimer: Hervey Bay market data and key indicators encapsulates aggregate property market conditions in the following suburbs in postcode 4655. For comparative purposes annual house and unit sales are between entire 2017 and 2018. Source: APM Pricefinder. © Copyright PRDnationwide 2019. INVESTMENT ANALYSIS HOUSE KEY FACTS Q1 2019 Median Rent Price: $355 per week Rental Yield: 5.0% HOUSE UNIT Average Days on Market: 19 Bedroom Breakdown: 2 Bed: 9%, 3 Bed: 36%, 4+ Bed: 55% 2 Bedroom 1 Bedroom 3 Bedroom 2 Bedroom UNIT KEY FACTS Q1 2019 4+ Bedroom 3+ Bedroom Median Rent Price: $300 per week Rental Yield: 5.8% Average Days on Market: 20 Bedroom Breakdown: 1 Bed: 7%, 2 Bed: 54%, 3+ Bed: 39%

OverviewKEY COMMENTS Median house rents have strengthened over the past 12 months to Q1 2019 by 1.4% to $355 p.w respectively, whilst median unit rents have remained stable at $300 p.w. During this timeframe the number of properties rented declined by - 30.9% (house) and -40.7% (units), which suggest median rental price increase may be due to an undersupply in the market. Investors are benefiting from low average days on market for both house (19 days) and units (20 days), which provides quicker returns. Thus now is an ideal time for investors to enter the market, particularly as houses have become more affordable. MEDIAN RENT AND AVERAGE DAYS ON THE MARKET*

800 400

700 350

600 300

500 250

400 200

669 Number of of Number Rentals 300 606 150 505 200 419 100 374 Market on Days / Rent ($) Average Median 323 295 100 214 50 192 175 115 84 0 0 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018 Q1 2019

House Unit House Average Days Unit Average Days Median House Rent Median Unit Rent

*Disclaimer: Hervey Bay market data and key indicators encapsulates aggregate property market conditions in the following suburbs in postcode 4655. Source: APM Pricefinder, realestate.com.au, SQM Research. © Copyright PRDnationwide 2019. RENTAL PERFORMANCE 2018* KEY COMMENTS Rental returns in Hervey Bay* is Median House Rent P/W Annual Change strong, currently at 5.0% (house) and $450 8.0% 5.8% (units) as of December 2018. 1.9% This is above Fraser Coast LGA (5.0% $400 6.0% house; 5.6% Units) and Brisbane $350 6.3% Metro (3.8% house; 5.2% units). -3.3% $300 4.0% 3 bedroom houses still provided the highest annual rental growth, at 6.3%. $250 2.0% Vacancy rates in Hervey Bay* have $200 $340 $385 decreased from 2.5% (June 2018) to $150 0.0% 1.7% (December 2018). This is well $100 $290 below Fraser Coast LGA 2.0% and -2.0% that of Brisbane Metro 3.2%. This $50 suggests that rental demand in Hervey $- -4.0% Bay* is heading towards a healthier 2 Bedrooms 3 Bedrooms 4+ Bedrooms market, making it an ideal time for investors to enter the market.

VACANCY RATES 2018 RENTAL YIELD 2018

4.5% Suburb/ House Unit 4.0% Postcode/ Rental Rental 3.5% LGA Yield Yield 3.0% 2.5% Hervey Bay* 5.0% 5.8% 2.0% 1.5% Fraser Coast 1.0% Regional LGA 5.0% 5.6% 0.5% Hervey Bay* Fraser Coast Brisbane Metro

0.0% Dec-15 Mar-16 Jun-16 Sep-16 Dec-16 Mar-17 Jun-17 Sep-17 Dec-17 Mar-18 Jun-18 Sep-18 Dec-18 Brisbane Metro 3.8% 5.2%

AUCTION CLEARANCE RATES 2018 Q1 19 COMPARISON

100.0%

Suburb/ 80.0% Postcode/ Auction Clearance LGA Rate 60.0%

N/A (i.e no auctions 40.0% Hervey Bay* recorded) 20.0% Fraser Coast

Auction Rate Clearance Auction 16.6% Regional LGA 0.0% Q4-2017 Q1-2018 Q2-2018 Q3-2018 Q4-2018 Q1-2019 Brisbane Hervey Bay 33.6% Metro^

*Rental performance graph represents aggregate house median rent prices in the following suburbs in postcode 4655. Annual change is a comparison between 2017 and 2018 median rent figures. **Auction Clearance rates for Hervey Bay are for all residential auctions held in the suburbs in the postcode 4655. ^Capital city data obtained by accumulating Domain’s weekly auction clearance results. Source: APM Pricefinder, Domain, SQM Research. © Copyright PRDnationwide 2019. PROJECT DEVELOPMENT MAP 1st HALF 2019*

27.9%

69.6% 2.5%

Commercial Residential Infrastructure Estimated Commence Location Project** Type Value*** Date**** 1 Urangan Commercial Centre Commercial $15,000,000 08/04/2019 2 The Anchorage Urangan Commercial $15,000,000 10/06/2019

3 Maryborough Hervey Bay Road Medical Centre Commercial $10,000,000 18/06/2019

4 The Avenue Corporate Complex Commercial $10,000,000 27/05/2019 5 Torquay Commercial Development Commercial $6,000,000 15/04/2019 6 Freedom Fuel Service Station Commercial $1,200,000 30/06/2019 7 Urangan Medical Centre Commercial $250,000 26/05/2019 8 Booral Road Outdoor Sales Yard Commercial $250,000 05/06/2019 9 Avion Development Project Infrastructure $750,000 30/05/2019 10 Boat Harbour Drive Pavement Infrastructure $400,000 21/01/2019 11 Pialba Precinct Lighting Infrastructure $300,000 18/03/2019 12 Hervey Bay Botanical Gardens Orchid House Infrastructure $300,000 01/05/2019 13 Esplanade Corridor Pathway Infrastructure $300,000 28/06/2019

14 Madsen & Chapel Roads Residential Subdivision Stages 1a- (146 Lots) Residential $6,600,000 07/06/2019

15 Boat Harbour Drive Units- (28 Units) Residential $5,000,000 28/05/2019 16 Torquay Terrace & Bideford Street Units -(23 Units) Residential $5,000,000 17/06/2019

17 Parklands at Bayridge- Final Stage (27 Lots) Residential $3,300,000 Nov-2018 18 Martin Street Residential Subdivision Stages 1-2-(37 Lots) Residential $1,700,000 31/01/2019 19 Sempfs Road Residential Subdivision-(34 Lots) Residential $1,500,000 26/05/2019

*Disclaimer: Project development map showcases a sample of upcoming projects only, due to accuracy of addresses provided by the data provider for geocoding purposes. **Projects refers to the top developments within the suburbs of Torquay, Urangan, Pialba, Dundowran, Hervey Bay, Nikenbah, ,Point Vernon, Urraween, Wondunna, Scarness. ***Estimated value is the value of construction costs provided by relevant data authority, it does not reflect the project’s sale/commercial value. ****Commencement date quoted for each project is an approximate only, as provided by the relevant data authority, PRDnationwide does not hold any liability to the exact date. Source: Cordell Database, ESRI ArcGIS. © Copyright PRDnationwide 2019. 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

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