A property expert expects sales volumes will start to recover in the Bundaberg coastal market by the end of the year.
Robert Matta, PRDnationwide research analyst, said the region which had been in the grip of a downturn appeared to be turning a corner under a new local government which has earmarked growth in the region as a priority.
“Facilitating growth in the region is sure to renew investor confidence and ultimately improve market fundamentals,” he said.
“It is anticipated that enquiry and sales will recover by the end of the year.”
Mr Matta said demand from resource workers should help fuel the recovery.
“The superior value proposition and lifestyle offering available in the Bundaberg Coastal Area market is contributing to the growing trend of workers in the resource sector relocating to escape the excessive property and rental prices they are paying further north,” he said.
PRDnationwide conducted research into the Bundaberg local government area and Bundaberg Coastal (encompassing Bargara, Coral Cove, Innes Park, Burnett Heads and Elliott Heads) property markets.
Both areas had witnessed a drop in house sales volumes.
“The Bundaberg local government area house market registered a total of 553 transactions in the six months to March 2012, representing a decrease of 19 per cent from the previous September 2011 half year period,” Mr Matta said.
“The unit market held up slightly better to register a total of 83 transactions during the same period, representing a decrease of 8.8 per cent from the previous September 2011 half year period.”
Land sales improved marginally to register a total of 192 sales, translating to a 6.1 per cent increase from the previous September 2011 half year period.
The researcher said sales activity across all property segments of the market had reached a ten year low.
“The median house price recorded for the March 2012 half year period was $290,000, contributing to a low five year average annual growth rate of 2.6 per cent. The upside of this is that houses have remained very affordable since 2008, which compared to other regional towns is very attractive to both first home buyers and those who are either upgrading or downsizing,” he said.
Mr Matta anticipated that improved fundamentals and a new local government would provide the catalyst for a revitalised property market in Bundaberg local government area in the medium to long term.