The Real Estate Institute of Queensland has release its Queensland Market Monitor for the March quarter of 2018. Below is an extract for the Bundaberg Region.
PLEASE NOTE: All of the statistics presented below and contained within the Queensland Market Monitor are the result of dedicated hard work and research by the REIQ. Wide Bay Real Estate do not profess to be the authors of this work and attribute all credits to the REIQ.
The Bundaberg house market has generally been a steady performer for the past five years, ranking as the third-most affordable house market of all the areas featured in the Queensland Market Monitor.
A house in Bundaberg cost an annual median price of $285,000 in March 2013 and March 2018.
The unit market performed a bit better than the house market over the past five years. A unit in Bundaberg increased in value from $251,400 in March 2013 to $259,000 in March 2018.
The Wide Bay SA4 employment market remained weak this quarter as the unemployment rate increased from 9 per cent in December 2017 to 9.2 per cent in March 2018. We hope the investment on the $210 million Childers Solar Farm, the $30 million Bundaberg CBD revitalisation and the proposed $18M bio-refinery project support regional confidence and create job opportunities.
Regional population in the Bundaberg local government area recorded a small increase of 405 new residents, to reach 94,858 total residents for the year to June 2017. The key drivers for the increase were overseas migration and to a lesser extent the natural increase in population.
The outlook of the sales market is steady and heavily dependent on the job market improving and the regional economic fundamentals strengthening.
The outlook for the rental market in 2018 is also stable and partially supported by the regional infrastructure program.
HOUSE MARKET (<2400 sq metres)
The Bundaberg’s house market slipped 4.7 per cent in the March quarter, from $289,500 in December 2017 to $276,000 in March 2018.
Despite the March quarter fall, the annual median price increased a modest 1.8 per cent, from $280,000 in March 2017 to $285,000 in March 2018.
Over the past five years, the annual median house price held steady at $285,000.
Fastest-selling suburbs #1
The fastest-selling suburbs for all houses, ranked by the shortest median days on market for the year to February
2018, were the following:
• Millbank (24 days, $213,625)
• Bundaberg South (35 days, $223,000)
• Bundaberg West (38 days, N/A)
• Kalkie (45 days, $310,000)
• Kepnock (50 days, $278,750)
Millbank, Bundaberg South, Bundaberg West and Kednock are suburbs within 6km of the city centre and close to shopping centres, schools and amenities.
Similar to other local government areas, such as the Gold Coast, most of the fastest-selling suburbs are more affordable than the local government area median price. Millbank, Bundaberg South and Kepnock have a median sale price below $285,000 (which is lower than the LGA annual median price).
The busiest price point is below $350,000 and this market is significant as it represents up to 75 per cent of the house sales for the past year.
Annual sales volumes fell 6.4 per cent, from 1109 sales in March 2017 to 1038 sales in March 2018. (This trend could change once the preliminary data is updated).
Similar to most other regions, listing volumes fell 4.5 per cent, from 3292 in February 2017 to 3145 in February 2018. As a result, the stock on market fell to 9.3 per cent, however,
Bundaberg remains one of the top-three areas with the largest stock on market in the QMM.
Median days on market were 68 days in February 2018, sitting on the longest side of the range in Queensland.
Vendors are adjusting their price expectations and as a result the median vendor discount fell from 6.4 per cent in February 2017 to 5.3 per cent in February 2018. This discount is one of the smallest in regional Queensland.
The unit market fell sharply, by 7.8 per cent this quarter toa median sale price of $264,500 compared to a median of $287,000 in December 2017.
As a result of this fall, the annual median house price held steady at about $259,000 for the past year.
Over the medium term, the unit market increased in value from $251,400 in March 2013 to $259,500 in March 2018.
The unit market comprised less than 10 per cent of the regional residential dwellings. The busiest price point for units was below $250,000, which generally comprised up to 50 per cent of the regional unit sales.
The Bundaberg unit market was one of the few recording an increase in listing volumes and stock on market for the year to February 2018.
Bundaberg remained the slowest unit market in all the areas analysed in the QMM, taking about 121 days to negotiate a sale.
Similar to the house market, the median vendor discount is one of the smallest one in regional Queensland sitting at 5.4 per cent
in February 2018.
The Bundaberg rental market operated within the healthy range this quarter, with vacancies of 3.4 per cent and rental costs generally holding steady.
Local property managers in Bundaberg have qualified the landlords’ confidence as stable and have reported an average of 2 to 5 applications per vacant property.
The occupied rental stock fell slightly for the quarter from 9416 dwellings in December 2017 to 9401 in March 2018.
The weekly median rent for three-bedroom houses and three-bedroom townhouses held steady at $290 and $280 for the March quarter.
In the case of two-bedroom units, the weekly median rent increased from $230 in December to $245 in March, showing an increase in demand for smaller dwellings as professionals are moving to the region following job opportunities.
Houses in Bundaberg achieved an annual yield of about 5.5 per cent, which is the highest of all areas analysed in the QMM.