Bundaberg property 'more stable than Mackay or Gladstone'
IT'S a good time to be an investor in Bundaberg, and from Elliott Heads and Avenell Heights to Walkervale and Woongarra, these five houses are proof of great value.
Several houses are being listed under the $200,000 mark, with even more under $180,000.
REIQ spokeswoman Felicity Moore said now was a good time to be making a long-term investment in Bundaberg real estate.
"The June quarter median house price for Bundaberg is $260,000, which represents a fall of 5.5% on last quarter,” Ms Moore said.
"However, while this sounds like a dramatic drop, Bundaberg's residential property market is relatively steady at the moment, with an annual sale price of $280,000 just 3.6% below the 12 month price and 5.3% below where it was five years ago.”
The REIQ classifies the Bundaberg market as "stabilising”, especially when compared with nearby Gladstone or Mackay, where the falls are greater and still falling.
So how much bang for your buck are Bundaberg homeowners getting in terms of rental yields?
"Bundaberg's gross rental yields are holding steady, with 5.3% for houses and 4.9% for units, which would satisfy most investors,” Ms Moore said.
"Weekly rents have similarly held steady, with a three-bed house renting for about $280, a two-bed unit renting for about $230 a week and a three-bed townhouse renting for around $285 a week.”
This makes Bundaberg a good market to buy into if you're looking for a long-term investment.
"Property has always been regarded as a long-term asset and whether you buy as an owner occupier or an investor, it performs best over a 20-year cycle, not over a two- to five-year cycle,” Ms Moore said.
"With that in mind, the REIQ considers Bundaberg a good market to buy into.
"There is strong interest at the moment from southern-state pre-retirees who are looking for the quiet community-by-the-sea retirement and Bundaberg is affordable, picturesque and with a strong sense of community.
"It is a great place to buy.”
There are plenty of other factors which make Bundaberg attractive to potential investors, with a number of large infrastructure projects on the horizon with the potential to boost the local economy.
This includes the construction of the 28km gas pipeline for about $20 million, the $71 million Rubyanna wastewater treatment plant with a $43 million contract with Downer Utilities, the construction of the $70 million Knauf Plasterboard plant and the replacement of the Bundaberg Fire and Rescue Station for about $7 million.
"A large residential development site of 29.5ha in the Eastern Bundaberg Corridor at Ashfield Road, Kalkie was released to the market during the June 2016 quarter,” Felicity Moore adds.
"This development site will be in close proximity to the proposed Kepnock Central Shopping Centre, which if it eventuates, will support the future growth of the eastern part of Bundaberg including the Kalkie-Ashfield development area.”