The Hervey Bay residential property market maintains a trajectory of robust growth and competitive conditions, driven by strong lifestyle migration and a chronic shortage of available stock. As of late 2025, the region is firmly established as one of Regional Queensland’s top performers for both capital growth and rental returns.
Sales and Price Trends: The median house price for Hervey Bay is currently sitting around the $723,000 mark, reflecting a significant annual increase of approximately 11-12%. The unit market has been even stronger, with a median price near $525,000 and annual growth exceeding 16%. Sales volumes have dropped, however, indicating a clear lack of housing supply which is acting as a strong buffer for prices even amid higher interest rates. Suburbs like Urangan and Dundowran Beach continue to lead the premium end of the market, fueled by coastal appeal and new development.
Rental Market and Investor Performance: Hervey Bay remains an exceptional market for investors. The rental crisis persists, with the vacancy rate hovering at an extremely tight 1.2%. This undersupply is driving strong rental growth, with the median weekly house rent reaching approximately $620. House rental yields are consistently around 4.0%, outperforming many larger capital city markets and making Hervey Bay a compelling proposition for those seeking both strong yield and capital appreciation.
Key Market Drivers: Ongoing population growth, driven by inter-state migration seeking affordability and a relaxed coastal lifestyle, is the primary force sustaining demand. Furthermore, significant local infrastructure projects—including major hospital expansions and the new Hervey Bay City Centre Hub—are boosting confidence, creating new jobs, and enhancing the region’s long-term economic foundations. The low supply of available properties and the high volume of development projects planned or underway (particularly in the unit and over-50s community sectors) suggest that market momentum is set to continue for the foreseeable future.