Suburb spotlight: Is Bundaberg's market stabilising?

Queensland's Bundaberg, or Bundy, has had a pretty tough run since the global financial crisis and the 2011 and 2013 floods, and it appears property investors have been pretty wary of the market since these events.

The city, which has made its way onto the Minister for Agriculture, Fisheries and Forestry, John McVeigh's growing drought list last month, is a mixed bag.

PRDnationwide's research department has found that an $80 million investment from the state and federal governments into flood damage repair and prevention has pushed Bundy back into the property investing safe zone, where they note affordable homes are available around the $200,000 price point.

But despite the temptingly low prices and green shoots of positivity, is it really stabilising and should you be buying there?

But despite the temptingly low prices and green shoots of positivity, is it really stabilising and should you be buying there?

On the PRDnationwide team, research analyst Harrison Hall said that retail and civic investment was being seen, pointing to longer-term opportunities.

“Growth has been minimal to this stage with median house prices edging up just 2% per annum over the past two years and the level of sales transactions slightly down, but that is expected to change with the population forecast to expand by 20% over the next two decades and plenty of investors and new owner-occupiers looking to capitalise on the current low entry prices," said Harrison.

Meanwhile, their principal of an agency in the area, Ainsley Driver, said that it is the beginning of the brightest year they've had in a while with more stock being shifted, most within the $200,000 to $400,000 bracket.

“A year on from the floods and most property and infrastructure has been repaired,” he said.

But, despite the physical infrastructure being repaired, has the confidence and sentiment in property buyers been repaired?

According to RP Data, Bundaberg East saw a significant decline over 2012/2013, however has been steadily climbing back up again, while Bundaberg North is yet to show any signs of an improvement on their downfall.

Bundaberg South and Bundaberg West's medians are holding steady.

In December 2013, a Newsmail investigation found that 18 small businesses had closed or not yet re-opened as a result of the January 2013 floods.

Despite this, there is still hefty interest in the region. The state government recently "called in" a development application for a proposed residential development at Bundaberg's Coral Cove from Austcorp. The development was approved in October 2013 by Bundaberg Regional Council.

Deputy premier Jeff Seeney recently called in the development.

“Austcorp’s proposed development at Coral Cove is in the ‘separation area’ of the existing Boral Quarry and the proposed Holcim Quarry,” Seeney said.

“We want to ensure that any development in this Key Resource Area is compatible with the type of extractive industry already existing or proposed for the area.”

A re-assessment is underway, and Seeney will determine whether the development will go ahead or not, having received a number of submissions. A decision is set to be made at the end of June 2014.

It also appears that real estate agencies are also starting to move more into the area. Raine & Horne opened up an office on the Coral Coast, Raine & Horne Bundaberg, late last year.

Let's open it up to Property Observer readers.

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