Last year the Queensland city of Bundaberg suffered one of the worst floods in the area’s history. It was a Tuesday in January when teaming rain caused the Burnett River to reach 9.52, its highest recorded level, causing a massive surge of water to flood the town and displace more than 2,000 families from their homes.
A year on and the area has been declared open for business, but does that mean anything for property investors? The answer is yes.
For investors with existing properties in Bundaberg, the demand for rental accommodation has never been higher with many families still forced to rent as they continue waiting for their homes to be fully repaired.
The Bundaberg market is also performing well thanks to miners choosing to commute to work in nearby Gladstone, according to Australian National Properties - Bundaberg, sales executive Michael Loader.
“Demand in the coastal towns has seen a significant increase post flood with investors fuelling the market between $250,000 and $350,000,” he says.
“The $400,000 plus market has also seen increases, mainly purchases made by home owners and mining families choosing Bundaberg as a better option as opposed to Gladstone, which is where they all work and commuting is very common.”
For those not yet in the market, do not despair. The February 2014 property report from Herron Todd White has identified a recent lull in unit sales in Bundaberg, meaning savvy investors might still be able to find themselves a bargain.
A good example of this is a three-bedroom, brick, inner-city unit currently on the market for $225,000 in Bundaberg South. It features, air conditioning, bathroom with spa, courtyard, remote garage and a current tenant paying $285 per week; a yield of 6.5%.
The report also suggests value will increase across the entire area as a surge in December quarter sales, coupled with decreasing stock, is predicted to push prices upward.
‘We see the inner city areas of Bundaberg West and the suburb of Avoca as two areas that may see some good growth,’ the report states.
At present, a house in Gooburrum in Bundaberg West will cost you about $420,000 with a rental yield of 5%.
