Why Bundy's an affordable option for those in property game
AFFORDABLE for families and offering strong returns for investors is how Bundaberg Regional Council's industry investment advisor Helen Swanson sees the region's property market.
Part of the council's Strategic Projects and Economic Development unit, Ms Swanson said with Brisbane prices set to rise, Bundaberg offered an attractive alternative.
She said a recent report by BIS Oxford Economics, Residential Property Prospects 2019-22, predicts the median house price in Brisbane was set to increase from $552,000 to $665,000 by 2022.
"With interest rates falling and credit conditions easing this will no doubt make it easier for families to buy their first home however with prices also expected to rise in Brisbane many may look further afield for greater return for their buck,” she said.
"This places Bundaberg in prime position to capitalise on those priced out of the market in Brisbane and/or investors keen to take advantage of the strong rental fundamentals that Bundaberg offers.”
Ms Swanson said according to the REIQ market monitor March Quarter 2019, the median house price in Bundaberg was a mere $270,000.
This compares to $530,000 in greater Brisbane, $598,000 on the Sunshine Coast and $316,000 in the Fraser Coast region.
"While being affordable for families the region also offers strong market rental fundamentals for investors,” she said.
"The median rent of a three-bedroom house in the region is only $300 per week, significantly below that of Brisbane and the Sunshine Coast both at $450 per week, Cairns at $390 per week, Mackay $350 and Fraser Coast $318.
"The gross rental yield achieved for houses also achieved equal top spot with Rockhampton, at 5.7 per cent.”
However she said affordability and strong rental yield were not the only ingredients to a good property purchase and/or return.
"Essential to the mix is also improved economic outcomes, especially job creation and wage growth,” she said.
"Bundaberg is already seeing improved economic outcomes achieved in the region, with unemployment falling from 9.6 per cent mid last year to sit around 7 per cent today.
"Driving growth over the next few years will be significant public and private investment which will fuel the demand for high-level skilled positions in the region.”