• Property values are surging in regional Queensland due to population growth and a shortage of homes. 
• Beaches, hot weather, and “bang for your buck” properties are among the drawcards of Wide Bay. 
• Property analysts predict the trend will continue.

Queensland’s coastal region is experiencing the largest growth in property prices in Australia, as prices soar across the state.

CoreLogic’s latest report shows that property prices in the Wide Bay region, which includes Bundaberg, Hervey Bay, and Maryborough, have increased 65-75 percent in five years.

The Wide Bay has a number of “incredibly exciting ingredients”, according to property analyst Simon Pressley.

Housing costs combined with lifestyle are definitely a major draw for people looking to relocate from big, congested cities such as Sydney and Melbourne.

There is also the best weather in the country, I would argue.

“It’s an economic story, a lifestyle story, and a housing shortage story.”

Drawcard: what is it?

Locals attribute the boom to the region’s beaches, good weather, and large backyards.

After putting two houses on the market in recent years, Bundaberg builder Jake Chappel experienced the growth at work and personally.

“It was nice to be on the selling side,” he said.

Although I am sorry for some of these younger people who are buying now, I don’t think [prices] are slowing down.

In the beginning, it was probably because of cheap land and cheap properties.

“We have a good climate. It’s a bit hot at the moment, but it’s usually pretty liveable, pretty comfortable.”

In comparison to the [Gold and Sunshine] coasts and Brisbane, we still have great beaches and friendly people.”

Growth in the market

Over the past five years, Bundaberg property values soared almost 75 per cent to a median value of almost $480,000, according to a CoreLogic report.

There had been an increase of more than 67 percent in Hervey Bay to over $615,000, and an increase of almost 66 percent in Maryborough to almost $395,000.

With a median value of over $965,000, the Sunshine Coast outperformed the Gold Coast region which is sitting at more than $928,000.

A strong population growth in Queensland is fueling the high prices, according to CoreLogic’s head of research, Tim Lawless.

He explained that when housing values rise, it’s generally due to a mismatch between supply and demand.

Most of that migration is interstate, so more people are coming to Queensland from NSW and Victoria.

Also, internal migration rates are continuing to increase as more people seek regional housing or move to the regions because jobs are growing or housing is more affordable.”

However, Mr Lawless said high property prices were not good news for everyone.

Everyone who owns a home has seen their equity grow quite a bit,” he said.

On the other hand, affordability is becoming increasingly difficult for those without homes.

“Household incomes haven’t increased anywhere near that amount.”

Preparing to pay a premium

Despite the data, veteran Gold Coast real estate agent David Hamilton was not shocked.

Based on his work, he cannot see the market slowing down anytime soon.

The big jump occurred during the COVID years. The trend is expected to continue,” Hamilton said.

An increase in interstate arrivals cashing in on the Gold Coast market has only added to the already tight market, he believes.

According to Mr Hamilton, we’re no different from Byron Bay, the Sutherland Shire, or the eastern suburbs of Sydney.

People want to live here, to be close to the beach, and they’re willing to pay a premium for that.”

In the past quarter, regional property prices have outperformed capital city markets, led by Western Australia and Queensland.

In a trend rarely seen outside the Covid years of urban escapism, regional property prices are now outpacing capital city prices.

Western Australia and Queensland have seen double-digit annual growth in their migration magnets, driving the reversal of fortunes between cities and regions.

Regional Australia’s dwelling values increased by 1.2% in the three months to January 2024, while the capital cities’ increased by 1%.

In Australia’s 50 largest significant urban areas (SUAs), capital growth remains varied, but WA and Queensland are among the standout performers.

Albany and Bunbury, coastal towns in WA, recorded value growth of 7.7% and 6.2% respectively, ahead of Northern NSW’s Lismore (5.5%) and Townsville (4.7%).

Six SUAs experienced an annual increase of 10 percent or more, including Bunbury (15.8 percent), Bundaberg (12.0%), and Rockhampton (12.0%).

Five regions are selling properties faster, with median time-on-market below 20 days in five regions.

Queensland’s Bundaberg (15 days) had the shortest median time on market, followed by Toowoomba (17 days), WA’s Bunbury (18 days), Busselton (19 days), and Cairns (19 days).

Similarly, Batemans Bay, NSW (75 days) continued to record the longest median selling time, while Bowral-Mittagong, NSW (-6.7%) offered the largest discounts.

There were almost half of regional sales between $400,000 and $600,000 in the most recent month measured, November.

This year’s sales volumes are well down from last year’s peak for the same month.

The characteristics of regional hotspots are similar

There was a correspondingly strong performance in the property market in regional cities and towns that attracted population growth.

In Western Australia, Busselton was the top performing regional centre for the December 2023 quarter, according to the latest data from REIWA. According to REIWA President Joe White, prices in Busselton have increased by 4.2% to $715,000 from $686,000 in the September quarter. As people look to get off the rental roundabout and buy a home, the rental shortage is driving the lower end of the market.

„Population growth and the rush to the regions are the other factors. The state is seeing strong population growth overall and the fantastic South-West lifestyle continues to draw people to Busselton.

Busselton has seen a large influx of FIFO workers and their families since three mining companies left.

This year’s sales volumes are well down from last year’s peak for the same month.

Sales in the December quarter were 19.0 percent higher than the September quarter, and 5.3 percent higher than the same period in 2022, reflecting the high demand for homes.”

According to the data, the current regional property upturn is not part of a wider cycle of large ups and downs.

With a median house sale price of $523,086, Port Hedland recorded the highest annual growth among WA’s nine broadly defined regional markets. The median house sale price in Bunbury increased by 9.5 per cent over the year, making it the next best performer.

Over the next two years, Townsville may have one of the strongest growth rates in Australia, according to Knight Frank Senior Partner Townsville and Mackay, Craig Stack.

Over the next two years, we expect the median sale price for existing homes to rise very strongly due to the low supply of existing homes in Townsville.

As people move to the region to work on major projects beginning in 2024, Townsville’s median house price may become one of the strongest in Australia due to an imbalance between demand and supply.

In each of the past three years, median prices have increased by five to seven percent, but growth rates might reach 10 percent next year, especially if interest rates fall.

“We expect rental growth to be high in Townsville throughout 2024 due to the high demand for employees, with many companies likely to lease housing on behalf of employees so they can fill positions.”

According to Residential Tenancies Authority data for December 2023, the median price in Townsville is $430,000, while the median rent for a three-bedroom house is $450.

Does this regional property cycle differ from others?

The CBS Property Managing Director, George Kafantaris, said that the ever-dwindling housing supply and relative affordability are driving regional property markets and that often volatile price fluctuations may give way to steady capital gains.

According to the data, this time is different and price growth will continue to be strong well into 2025, unlike previous cycles of large ups and downs.

Compared to the main capital cities, which have stabilised, the current market is still relatively affordable.

Since the starting base price is lower, all dollar increases will result in a higher percentage increase than in areas with a higher starting price.

There’s no doubt that regional areas with multiple drawcards, such as employment, lifestyle, and improved infrastructure, will continue to attract strong net migration and pressure on property prices.”

“New housing supply simply cannot keep up with demand.”

According to CoreLogic Research Director Tim Lawless, the most successful regions are those with a diverse economic base, such as agriculture, tourism, ports and mining.

Property markets were not buoyant in all regions.

The largest quarterly drops were recorded in Launceston (-2.3%) and Devonport (-2.0%) in Tasmania. In 11 of Victoria, Tasmania and NSW regional markets, annual declines were recorded, with Batemans Bay (5.8 per cent) having the biggest annual decline.

In the past decade, values have increased by 91 percent in Tasmanian housing markets, Mr Lawless said.  

A combination of affordability constraints following the pandemic surge in values, negative interstate migration, and a normalisation of internal migration rates are likely to contribute to the softer conditions across regional Victoria and regional Tasmania.

Q&A on the article

What is the difference between regional and capital city property markets?

As a result of the Covid years of urban escapism, regional property prices are outpacing capital city prices. The reversal of fortunes between the cities and regions has largely been driven by double-digit annual growth in the migration magnets of Western Australia and Queensland.

What are the fastest-growing property markets in each region?

Coastal towns Albany and Bunbury in WA experienced the highest quarterly growth, with value growth of 7.7% and 6.2% respectively, ahead of Lismore (5.5%) in Northern NSW and Townville (4.7%) in Queensland.

What are the worst performing regional property markets?

The largest quarterly drops were recorded in Launceston (-2.3%) and Devonport (-2.0%) in Tasmania. In 11 of Victoria, Tasmania and NSW regional markets, annual declines were recorded, with Batemans Bay (5.8 per cent) having the biggest annual decline.

CoreLogic’s Hedonic Home Value Index ranked North Rothbury among the region’s top performers in 2022, which prompted investors to scramble to get a map of the town. Huntlee, the Hunter Valley’s newest masterplanned development, shares the same postcode with North Rothbury. 

Just north of the Pokolbin wine region, Huntlee’s impressive new town center welcomes you with open arms. Here you can find everything you need for shopping and personal needs, such as a daycare, medical center, Coles supermarket, tavern, and specialty shops. Huntlee Fitness will open its doors in just a few weeks.

Having the vineyards at your doorstep means that you have access to a few years’ worth of quality weekends within a very short drive of here. Huntlee is also well located for another very important reason. Singleton, Maitland and Cessnock are close by and provide a wealth of employment opportunities, ranging from engineering to hospitality to high-tech. As a result, Huntlee is becoming a popular place for working families to raise a family in a supportive, curated environment.

Numbers tell the story

When the masterplanned community is completed, it will have 7500 residents spread across four villages, the first town in the Hunter in 50 years. With 45 minutes between Newcastle and Sydney and an easy hop on the freeway, the area is seeing an increase in remote-working residents following the Covid revolution.

Considering its unmatched lifestyle and home prices well below the NSW median, the North Rothbury-Branxton-Greta region is expected to experience explosive growth in the upcoming years.

More than 60% of the current population of 8800 is expected to grow to 14,100 by 2041.

Hydrogen hub

Residents of Huntlee can afford a home that is out of reach in most major urban areas with an average block size ranging from 225sqm to 897sqm. A healthy 4.9 per cent rental yield is achieved in the Hunter, and there is just a 2.79 per cent rental vacancy rate. The Hunter is poised to become one of NSW’s first green hydrogen hubs, creating new low-carbon jobs.

The town center is also undergoing rapid development. Green Ridge, a luxury retirement village across the road, is being built. As the area approaches government-mandated population milestones, nearby land for primary and secondary schools is ready for development. A wide range of public and private secondary schools are also within minutes of Branxton and Greta primary schools.

Invested in prospering

Huntlee emphasizes self-sustaining communities that generate their own microeconomies by providing employment, education, entertainment, shopping, and community services.

The city of Huntlee is dotted with parks and walking paths, making it a social hub for families and friends. The Huntlee District Park is a jewel among the trees and is home to an amphitheatre, picnic areas, barbecue facilities, and dog park. 

With the development focus shifting to bringing even more vitality and diversity to the town centre by 2023, the shopping precinct will be within walking distance of modern residential and residential/commercial townhome developments. The Urban Series development offers super modern, open-plan designs––packing a lot of home into highly affordable land footprints.

According to Robert Crane, Huntlee’s sales director, the Urban Series will offer a new way of life for working and professional people and their families in the area. People of all ages can benefit from the lock and leave lifestyle, from young couples to executives to downsizers and retirees.

At the start of 2023, Huntlee’s residential community consisted of both owners and renters. The median house price was $826,000, and the median rent was $685 a week. A variety of block sizes are available in Huntlee’s latest release, ranging in size from 225sq m to 895sq m with a few larger lots available.

The Huntlee Display Village offers a stunning range of homes built by Australia’s leading builders, worth a visit just to get some inspiration for your own home. Investors will be interested in choosing design configurations that maximize rental and resale returns.

In addition to standard electricity, water and sewer connections, Huntlee provides a separate recycled water system for toilets and gardening, eliminating the necessity for bulky water tanks. In addition to this, there are natural gas and FTTP internet connections, fences at the side and rear, and landscaping on the front.

It takes significant investment and determination to masterplan a whole town, but the payoff is well worth it, as Huntlee properties homes outperform the broader housing market in terms of returns and resales. In a booming location, this property offers low vacancy and high yields.

The dream of owning a home in Newcastle or Lake Macquarie may feel increasingly out of reach for some young people, but there may be a solution – rentvesting. 

With increasing prices and interest rates increasing 143 times in little more than 15 months, rentvesting is fast gaining attention. 

Young people searching for new ways to get a foot in the property market may find this a viable method, says Niva Property’s Nigel Watts. 

“Simply put, rentvesting is all about renting where you want to live and investing in a property in a different and more affordable location,” he told the Newcastle Weekly. 

“Firstly, you get your foot in the property market as early as possible, and with a well-selected property you can start to build equity and wealth from a young age.   

“You can then use this equity in addition to your normal cash savings to help fund a future home when you are ready to settle down. 

“This also teaches people about investing and about finances – great life skills to have, and thirdly it means when you are young you can rent and not worry about doing all the maintenance – live your life before settling down in a family home.”   

Nigel says the typical price for a house in Newcastle has risen 38% in the past five years to $966,000. 

In Lake Macquarie, the rise is 43% to $935,000. 

With a 20% deposit often required, homebuyers typically need $200,000 saved in the current real estate climate. 

At a 6% interest rate, he adds, a home loan would attract a monthly repayment of $4,593 – 63% of the median household income in the Lake Macquarie and Newcastle region.   

 WHAT MAKES A GOOD PROPERTY FOR A RENTVESTER?  

“Buying in a more affordable location where prices are yet to increase, buying in a location with strong macros indicators showing positive capital growth prospects, and ensuring the suburb you buy in has low rental vacancy and good overall yields,” Nigel says will make for a good rentvesting property. 

“Most importantly you must plan to keep the property for the long haul,” he adds. 

“If you sell within the first five years you may not reap the rewards of your hard work.”  

Before you invest, he says, you must work out cash flow projections to ensure affordability. 

“An established property that can be improved is a good strategy as this means you know what you are getting and generally there is a lot less risk than off the plan. 

“This is especially so now with many builders going into liquidation and costs continuing to rise.   

“With an older established property, you also have an option to manufacture additional equity in years to come through carefully planned and managed renovations.       

“Don’t get something too run down though that needs a lot of work and can cost a lot in maintenance and repairs,” he warns.   

“Whilst houses tend to out-perform units based on historical data, if a unit is all you can afford, try to buy one in a small complex which generally has less strata issues, less costs and less hassles.” 

WHERE TO RENTVEST  

“That’s the million-dollar question,” says Nigel.   

“If you are not comfortable buying away from where you live, your options are of course reduced, however, it may still be possible for you to buy local and achieve your goals. This all comes down to where you live, affordability options and of course your borrowing capacity.   

“A key thing is to set realistic expectations and you may need to invest in an area you’d never thought of before.”  

Depending on your individual situation, Nigel also says young people could consider living in their rental property or rentvesting with a sibling or friend.       

House prices in the Wide Bay region have risen more than 80 percent since 2020, but experts say they’re still affordable.

Regional housing prices and rental markets are being impacted by migration.

People are looking for “the next Sunshine Coast” and discovering “hidden gems” like Bargara, Moore Park Beach, and Burnett Heads.

Property prices in a sleepy beachside town have risen by more than 80 percent in four years, but an analyst says they remain “extraordinarily cheap” compared to those in capital cities.

In the Bundaberg region, Moore Park Beach is nestled between cane fields and the ocean, five hours north of Brisbane.

Following a lifestyle change last year, Ms King and her husband are among the area’s newest residents.

As a result, they swapped their Brisbane mortgage for a beachfront “oasis” with kookaburras in the backyard.

The town of Moore Park Beach is only about 20 minutes out of Bundaberg, and we found this beautiful home there.

Pricing comparisons

According to PropTrack data, Queensland’s regional market has experienced a 66.5% surge in home prices since 2020, making it the strongest market in the country following the pandemic.

The Wide Bay region between Gympie and Bundaberg topped the list with values soaring by 80.5%.

Additionally, house values rose by more than 70 percent in Ipswich, Logan-Beaudesert, and the Gold Coast.

Bundaberg’s median house price is $522,607, Gympie’s is $629,775 and Maryborough’s is $484,153, according to Corelogic.

Noosa’s median price is $1,461,581, while Greater Brisbane’s is $817,564.

Since the pandemic began, coastal areas have experienced extraordinary growth, according to CoreLogic’s Tim Lawless.

According to him, home values in Moore Park Beach, one of the more affordable coastal suburbs in Wide Bay, have risen by 82.5%.

When compared to south-east Queensland, coastal homes in the region are still affordable, according to Mr Lawless.

Moore Park Beach, Bargara, and Innes Park still have house values or median house values well below $750,000, he said.

This is extraordinarily cheap compared to a coastal market around south-east Queensland.”

Increasing prices

In spite of the end of the pandemic, migration was still a major factor putting pressure on the regional property market, and the rental market.

“There are very strong migration flows into Queensland from both interstate and overseas,” Mr Lawless said.

“Overall population growth in regional Queensland is still very strong, but it is mostly caused by interstate migration rather than overseas migrants.”

He said the supply of housing was not meeting demand.

“The number of new homes that are being built is insufficient to the amount of people coming into the state,” Mr Lawless said.

“So with that in mind, we’re seeing … constraints across both homes to purchase, but also homes to rent, because rental rates are also rising consistently and quite rapidly.”

Bundaberg real estate agent Kurt Dempsey said the local market was attracting buyers who had sold and made profits elsewhere, and were chasing a beachside lifestyle at a cheaper price.

“They’re searching for the next Sunshine Coast,” he said.

“Bargara, Moore Park Beach and Burnett Heads have been these little hidden gems and they’re starting to be discovered.”

Mr Dempsey said traditionally the region was known for its “slow and steady” market pace, which appeared to be returning after the boom of the pandemic.

Next coastal hotspot

James Jenkinson has bought land at Innes Park, on the coast of Bundaberg, and is planning to build a house and move his family there.

A $1.2 billion Bundaberg Hospital development and the coastal lifestyle attracted the pipeline plumbing construction company owner to the region.

The Bundaberg region reminds him of parts of the Sunshine Coast from the early 1990s.

We are considering moving to rent this year and then starting the building process.

I can only say that finding rentals in Bargara is a little bit of a challenge.”

Leaving Brisbane for the beach

She and her husband built their first home in Mango Hill before the pandemic and sold it last year to move to Moore Park Beach.

She described living here as “absolutely amazing.”.

It was unusual to see turtles laying eggs in your backyard last December when I was down the beach.”

As a result of a “security swap”, Ms King said they were able to transfer their mortgage with their lender.

By changing the property used as collateral for the loan, mortgagees are able to maintain their existing loan structure.

Our mortgage didn’t change, but we were able to keep the same mortgage because the property we bought in Moore Park Beach was worth less than what we sold in Mango Hill.

We are not better off financially, but we are better off physically, mentally, and emotionally.”

These are 10 of the biggest developments coming to the Fraser Coast in 2024 and beyond, from a new tavern in Dundowran to a 17-storey hotel in Urangan.

The Fraser Coast is currently home to exciting developments, while others are awaiting council approval.

Several new developments have been completed in the region in the past year, including the new 7-Eleven service station at Maryborough, the city’s new Red Rooster outlet, Forty Winks, Hervey Bay’s new Bunnings superstore, and a new childcare centre.

However, there are plenty of others in the works or preparing to open.

There will be more employment, entertainment, restaurants, homes, and businesses in the region as a result of the developments.

On the Fraser Coast, there are 10 projects underway or proposed.

Tavern, daycare center, and shops at Dundowran

Fraser Coast Regional Council has approved a new development that will include a tavern, multiple shops, a supermarket, childcare center, and service station at Dundowran.

According to documents submitted to council, the development to be built at the corner of Pialba-Burrum Heads Rd and Drury Lane proposes an “extensive range of retail and commercial uses over six lots”.

The documents state that six separate development applications were filed for each proposed lot.

There will be a service station, two food and drink outlets with drive-through facilities, a tavern, and a childcare center.

Guzman y Gomez, Maryborough

On Alice Street, Guzman y Gomez’s Maryborough outlet is taking shape.

Previously, the site housed an auto electrical service shop.

The eatery will open 24 hours a day, 7 days a week, according to the development application.

A two-lane drive-through will also be included.

In 2021, Guzman y Gomez opened a store on Main St in Hervey Bay.

Pialba – Spotlight, Anaconda and Harris Scarfe

Just before Christmas, the first stage of this eagerly anticipated development will open its doors.

In Pialba’s Boat Harbour Drive, not far from the new Bunnings store at Main and Mcliver Streets, the $80 million Spotlight and Anaconda development is quickly taking shape.

A second building will open shortly after in the new year, according to Spotlight Group executive deputy chairman Zac Fried.

As part of the development, Anaconda will be brought to the Bay for the first time, while Spotlight will find a new home.

Harris Scarfe, which closed its doors during the Covid pandemic, will also return to Hervey Bay.

It will be open before Christmas if everything goes according to plan, Mr Fried said.

Harris Scarfe and Anaconda are very excited to return to Hervey Bay.”

Maryborough – Energy Storage Industries — Asia Pacific battery manufacturing factory

The construction of a battery manufacturing factory in Maryborough will create new jobs.

It promises to “produce low-cost, long-life, environmentally friendly batteries that allow large-scale energy storage” and is the first of its kind in Australia.

Director Stuart Parry said the facility would help ESI establish a reliable and environmentally friendly energy storage industry in Australia and Asia Pacific.

The future of renewable energy in Australia depends on our products, Mr Parry said.

Unlike other battery technologies, our batteries have a life cycle of 25 years and a storage capacity of 10 to 14 hours.

As a result of its low cost and environmental friendliness, the product is ideal for remote locations, national parks, and the Great Barrier Reef.

New Fraser Coast Council administration buildings

New council administration buildings will cost tens of millions of dollars in Hervey Bay and Maryborough.

As part of a $100m project, Hervey Bay’s future library and council administration centre were revealed last year.

Public plazas, libraries, council administration centers, and community spaces are among the new features.

On the corner of Main St and Torquay Rd, the redevelopment will include a larger Hervey Bay Library and a Disaster Resilience Centre.

In August, the council voted to build a council office and customer service centre at The Hub at 350 Kent St, and renovate the existing library on Bazaar St.

Urangan – $60 million hotel development

Urangan Marina is set to undergo a $60 million makeover as a result of a $60 million investment in Hervey Bay tourism infrastructure.

More than 200 jobs could be created and extensive economic opportunities could be created for the Fraser Coast region as a result of the investment, which has been kicked off by the State Government.

Marina Square’s centerpiece is a 144-room, four-star hotel, whose construction would create 210 jobs: 175 during construction and 35 full-time positions in the long term.

Marina Square at Urangan Harbour is taking a significant step forward with the facilitation agreement with Hervey Bay Boat Club and Club Property Solutions.

Adrian Tantari, member for Hervey Bay, said the project will boost apprenticeships and jobs.

“This will mean more work for our tradies and the local construction industry, and that will drive tourism growth.” said Tantari.

In addition, it will begin redeveloping the boat harbour that has been discussed for some time, which will enhance Hervey Bay’s reputation as one of Australia’s premier whale watching destinations.”

Maryborough – new service station and BP redevelopment

The council has approved an application to upgrade a Maryborough petrol station, which will require houses to be demolished to make way for a car wash and convenience store.

In May, the Fraser Coast Regional Council approved the BP application at the intersection of Saltwater Creek Rd and Woodstock St in Maryborough.

While the proposal was approved, conditions were put in place, according to Councillor Paul Truscott.

The hours of operation for the service station were limited to 4am to 10pm daily, those for the car wash to 6am to 8pm Monday through Saturday, and those for the service station on Sundays were limited to 7am to 6pm.

Nikenbah – New Fraser Coast basketball centre

After council approved a funding agreement for the first stage of a multimillion-dollar facility, basketball on the Fraser Coast is one step closer to having a new home.

A $3m basketball stadium will be built at the Fraser Coast Sport and Recreation Precinct at Nikenbah, with two indoor courts and one outdoor court.

At the September council meeting, Mayor George Seymour supported the Hervey Bay Basketball Association’s proposed facility.

“This type of infrastructure is so crucial for our community,” Mr Seymour said.

The Fraser Coast Sports and Recreation Precinct is now home to basketball, according to Deputy Mayor Denis Chapman.

Eli Waters – new Aldi development

A development application has been lodged for an Aldi store at Eli Waters in Hervey Bay.

This 8000 sq m development is located at the corner of Serenity Drive and Pialba-Burrum Heads Road.

On the Fraser Coast, there are three Aldi stores – one at Maryborough, one at Urraween, and one at Urangan.

Building the site will create 30 store jobs as well as construction jobs if the project is approved.

A population pool of 20,567 people would initially be served by the store, and another 1847 would be served by 2031.

Despite catering to Eli Waters and Dundowran, the development application notes that the intersection of Serenity Dr and Pialba-Burrum Heads Rd will need to be upgraded to handle increased traffic.

Torbanlea – $229m train factory

It has been revealed for the first time what Torbanlea’s $239m train factory will look like following an announcement about the purchase of another site that will produce train car sub-components.

With the purchase of an industrial site on the Fraser Coast, Hyundai Rotem Corporation will establish a $30 million stand-alone local presence and establish a factory to make subcomponents for train cars.

Maryborough can produce components typically made overseas, creating 20 jobs.

Yong-Bae Lee, CEO of Hyundai Rotem, said the Maryborough plant would be operational in 2025 and would provide roll forming services for the Torbanlea train manufacturing facility.

Currently, Queensland does not have roll forming capability, and such components have historically been imported.

This investment strengthens Queensland’s rail manufacturing capabilities while creating new jobs.”

During Q4 2023, Hunter Valley recorded a median house price of $700,000 and a median unit price of $561,000. The annual growth rate for houses is 2.4% and for units is 13.3%. The total number of sales declined in Hunter Valley during this period by 1.8% (to 224 sales) and by 2.9% (to 33 sales). Price growth coincides with lower sales, which indicates a market undersupply. With cash rates beginning to stabilise, Hunter Valley properties are in high demand, suggesting now is a good time for owners to transact, especially given the limited amount of ready-to-sell stock.

Between Q4 2022 and Q4 2023, the average vendor discount for houses has increased to -3.9% and for units it has remained relatively stable at -4.0%. The Hunter Valley has been a buyer’s paradise for the past 12 months, with sellers increasingly accepting offers below the first list price. Compared with early and mid-2022, when buyers had to pay a premium, this creates a unique opportunity for buyers and sellers. With sales prices trending upwards, this creates a unique opportunity.

In December 2023, Hunter Valley house rental yields were 3.7%, higher than Sydney Metro (2.8%). In the past 12 months, the median house price rose 3.6%, to $580 per week, and the number of houses rented decreased -8.7% (to 212). The rental housing market is undersupplied, so investors have an opportunity to profit.

At $620 per week, 3-bedroom houses provided investors with a +6.0% rental growth annually.

In December 2023, the Hunter Region recorded a vacancy rate of 1.4%, slightly lower than Sydney Metro’s average of 1.7%. As investors re-entered the market and capitalized on tight vacancy rates in the Hunter Valley over the past 12 months, vacancy rates have steadily increased. While the Hunter Region has a 1.4% vacancy rate, it is still below the Real Estate Institute of Australia’s benchmark of 3.0%, thus suggesting quicker rental occupancy. Even though median sale prices of property have increased over the past year, these indicators create a conducive and sustainable environment for investors.

In a report prepared for Toowoomba Regional Council, a diverse economy and steady population growth have contributed significantly to the Region’s steady economic growth over the past five years.

Geoff McDonald, Mayor of Toowoomba Region and Chair of the Economic Development Committee, said the report Toowoomba – Economic Health Check (June 2023), prepared by .id: informed decisions), which was presented at the Economic Development Committee meeting today (December 13, 2023), highlights the region’s strengths and potential for growth.

In the report, Mayor McDonald emphasized the Toowoomba Region’s prosperity and resilience, especially given the rebound from earlier drought conditions and the effects of Covid-19, as well as more recent disruptions caused by uncertainty in global economic conditions and rising inflation.

According to the report, the Toowoomba Region experienced robust growth between 2021 and 2022, mainly due to population growth and sustained employment and investment in health, education, agriculture, and manufacturing.

In 2021-22, Toowoomba’s population was estimated at 178,590, representing 4.6% of South East Queensland’s and 6.6% of regional Queensland’s population. The city is expected to grow by 1.4% per year from 2017 to 2022, above the decade average (1.2%).

In the financial year 2021-22, Toowoomba’s Gross Regional Product (GRP) was $11.62 billion, according to Mayor McDonald. Following a slight decline between 2018 and 2020 influenced by Covid-19, the regional economy grew by $1.1 billion between 2020 and 2022.

As a result of Australian Bureau of Statistics figures, lending to investors has increased by almost a fifth in the past year, suggesting investors are making a comeback. According to the latest data, in January 2024, investors borrowed $9.21 billion, while owner-occupiers borrowed $15.91 billion. Over the past year, investors’ loans increased by 18.5%, while owner-occupier loans only grew by 3.4%.

As a professor of economics at Curtin University, Rachel ViforJ explains, the lack of supply and rising rental demand are once again making investment attractive. Rents would normally rise if there is a huge demand relative to supply, so investors would be motivated to invest in rental housing, she says.

While the national vacancy rate sits at just 1% and rates continue to rise, CoreLogic figures show Australian property prices have recorded 14 months of constant price growth.

According to CoreLogic research director Tim Lawless, increasing investor numbers could actually be beneficial to the current housing crisis.

“More investment in the market is a positive thing. It should introduce more rental stock to the market,” he says.