Media release – date HERVEY BAY PROPERTY MARKET RECOVERY SET TO STRENGTHEN IN 2012 Graeme Napier from First National Real Estate Hervey Bay says the local property market is showing lots of potential for 2012, with signs already that a slow recovery is underway. “In the last six months, the market has been falling, but this is expected to steady as 2012 begins and the effects of the floods and cyclones wear off, and interest rates reduce,” Mr Napier said in the First National 2012 Property Market Outlook released this week. “It is hoped that the heavy rainfalls and cyclones which affected 70 per cent of the state last summer will not be repeated in the coming six months.” The key challenges facing the region’s property market in 2012, says Mr Napier, will be interest rates and employment. “Approved government projects should proceed which in turn will produce jobs and prove an incentive for people to remain in the area,” Mr Napier said. “Hervey Bay has the opportunity to be used as a home base for families of Miners and suppliers of eight proposed new mines in Queensland as well as for tradespeople and workers living here and working in Gladstone and other areas and the fly in/out workers employed on projects in WA and overseas in South Africa and Chile.” According to Mr Napier, there should also be a marked improvement in Hervey Bay’s commercial activity should three or more of the planned major developments go ahead at the start of 2012, namely the 160 unit resort, Stocklands shopping centre extension and $100 million extension to St Stevens Private Hospital. “It is also hoped a fourth project will proceed, the $800 million Boat Harbour Development, which would provide an enormous boost to the region both economically, socially and for future tourism,” Mr Napier said. “There are many flow-on effects from these projects for building companies to win contracts to build and supply buildings for mining sites for accommodation in residential and offices.” The state government elections in the first half of 2012 may also impact the local property market. Residential property prices in Hervey Bay are expected to remain relatively flat across all sectors of houses, apartment/strata and land due to ongoing job uncertainty and lack of consumer confidence. “The end of the $10,000 state government building boost will keep land prices flat, only increasing if market conditions improve,” Mr Napier said.
According to the Outlook, the rental market should see vacancy rates trend downwards in 2012, tightening by up to 1 per cent, as rents remain steady at current prices making them more competitive when compared to the costs of a mortgage. Any increases in investor activity are expected to be up to 1 per cent as a result of increased employment opportunities in the mining sector. “But, it is Retirees who I expect will represent the strongest growth in activity in the Hervey Bay region as they seek the benefits of the lifestyle of living in a temperate climate and nearby facilities,” Mr Napier said. Interest rates are anticipated to decrease by around 1 per cent which is expected to have a favourable impact on the property market. The carbon tax is expected to have an impact on the property market, reducing consumer confidence. -
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Issued by: First National Real Estate. For further information or to receive a copy of the 2012 Property Market Outlook, Graeme Napier, Principal from First National Real Estate Hervey Bay, on 07 4194 2677.