Affordability is the secret weapon in Wide Bay real estate, and as the property market continues to cool in line with rising interest rates, opportunities are emerging in the region’s property investment hot spots.
In a post-Covid world, the Wide Bay has been transformed into a property hotspot, with investors and homebuyers jostling to get into the market where affordability plays a key role.
Investment options have been slim in the past 12 months, with properties selling almost as soon as they were put on the market. But as the property market continues to cool in line with rising interest rates, more opportunities are starting to emerge in property investment hot spots.
Innes Park and River Heads both made the top 20 of best Queensland suburbs for investors, according to the recently released The Courier-Mail Make Your Move Report.
Also making the list were Norville, Bundaberg North, Moore Park Beach, Toogoom, Point Vernon, Walkervale, the Gympie suburb of Southside and Tin Can Bay. Many of Wide Bay’s most stunning homes - some on the market - were also to be found in those suburbs.
Maryborough Ray White principal Guy Meredith said while house prices were on the rise across the region, investors who had bought in the Wide Bay were still paying some of the most affordable prices in the state, and getting big returns from their investment. The region had premium rent returns, with six per cent plus gross returns on investments, Mr Meredith said. “While interest rates and cost of living expenses are on an upward trend, first home buyers and investors can still get into the regional market at a realistic price as a opposed to the million dollar metropolitan suburbs,” he said.
The affordable prices seen across Wide Bay was why Mr Meredith expected the region to continue bucking the trend as the property market across the nation cool in line with interest rates rises. “Our increase in popularity and population is a true and sustainable indicator for
continued growth,” he said.
“The market has boomed over the past two years, with our median house price in Maryborough City rising to $330,000 and $495,000 in Maryborough West. “While we have witnessed significant capital growth in the Maryborough market, in many ways it has been a price correction for the Fraser Coast. “I believe we have been way too low for too long.” While capital growth has exceeded 35 per cent in several suburbs and mortgage interest rates are forecast to increase as much as 2.5 per cent, the region’s property market still remains very affordable, Mr Meredith said. “Housing affordability is a key factor for first homebuyer and investor activity within the
marketplace.”
Queensland has emerged as the best place in Australia to invest in real estate, dominating national top 20 investor suburbs for houses and units – 75 per cent of which was in the Sunshine State.
The Courier-Mail Make Your Move Report, revealed that 11 of the top 20 suburbs for houses came out of Queensland – seven in Greater Brisbane – with the state doing an almost clean sweep of the top 20 for units – taking up 19 spots.
The data saw Queensland metrics hold firm for investors, with strong capital gains of 35 to 44 per cent for houses, while unit medians jumped between 19 and 42 per cent.
Rental yields had been stronger than southern capitals given more affordable property prices in the state too, ranging from 4.2 to 5.6 per cent for the state’s top housing suburbs and an even stronger result of 5 to 7.7 per cent for our best unit performers.
Queensland’s domination of the top 20 list for units nationally was absolute, with half the list coming out of Greater Brisbane, eight from the Gold Coast, one from Cairns and one from Western Australia.
PropTrack economist Angus Moore said: “Queensland is in really high demand from renters – and from purchasers as well”. He said rental yields were beginning to grow again after taking a hit nationwide in the past couple of years when prices were growing faster than rents were.
Wide Bay and the Gold Coast both had two apiece in the top 20 – Innes Park 9th ($600,000, up 35 per cent), River Heads 13th ($547,000, up 48 per cent), Merrimac 12th ($910,000, up 38 per cent) and Reedy Creek 17th ($1.33m, up 40 per cent).
Article courtesy The Courier Mail 10/8/22
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