The latest Bundaberg market report from the UDIA shows rising demand for coastal properties and the median land price up 1.7 per cent in 12 months.
However, the Affordability Index suggests the Bundaberg Region still offers good value for home buyers.
Bundaberg Regional Council's Executive Director Strategic Projects and Economic Development, Ben Artup, said “now is the time” for property values to take off.
“It’s the perfect time on Bundaberg’s property clock, approximately 7.30 to be precise,” Mr Artup said.
“Property forecasting groups have often placed Bundaberg at the bottom of the property clock, all throughout the Australian property price booms since the Global Financial Crisis until 2018-19.
“The strong property data we are now seeing shows we could be seeing an end to the trend that saw the region defy national property price trends for some years, with the market now taking off.”
Notable in the Bundaberg market report
- Total house sales were up 13.8 per cent at Avenell Heights, Bargara had the most house sales (185, up 5.7 per cent) and Kepnock was down 1.2 per cent.
- More land sales were recorded in the coastal areas of Moore Park Beach (30.2 per cent) and Innes Park (17.3 per cent).
- The median house price was steady over 12 months at $295,000.
- The median land price was up 1.7 per cent to $150,000 and 529 blocks were sold in a year.
- The median time on market reduced 0.9 per cent for houses to 56 days while units were harder to shift.
- The average house rental was 3.2 per cent dearer at $320 per week, units two per cent dearer at $260, with yields at 5.6 and 5.5 per cent respectively.
Mr Artup said all property markets are influenced to some degree by regional factors.
“In Bundaberg we're seeing a perfect storm of these positive factors result in our market taking off,” he said.
- Lowest interest rates in history
- Household saving levels very high
- Lots of extra money in the economy from things like building grant programs and JobKeeper, etc
- A local economy that’s held up better than most other places in Australia, resulting in confidence about the future
- More positive regional messaging and promotion by Council and others about the future
- Pent-up local demand that’s seeing people build or buy that new house now, with the above factors encouraging a decision to build or buy now.
“It looks like now is the time in Bundaberg for many,” Mr Artup said.
“We’d expect this type of growth and demand to continue for at least 2-3 years before things perhaps flatten off.
“This is due to expectations that interest rates will stay low for 2-3 years (which the Reserve Bank has hinted at) and a pipeline of positive local investments expected to be delivered over that time to further boost confidence and jobs.”
Mr Artup said growth in demand at Innes Park and Moore Park Beach reflects the growing “sea change” trend.
“Affordable coastal living is the Australian dream,” he said.
- Earlier report: Branyan lifestyle triggers property boom