Promised funding will be positive for local property
REAL estate experts predict the Fraser Coast property market is in for a steady increase as more than $590 million in promised infrastructure comes to fruition.
House prices and demand is expected to gradually increase as the population grows from the influx of workers arriving to build major development projects.
According to the REIQ's Market Monitor report for the last quarter, investment across the Wide Bay is expected to yield about 2200 jobs.
Fraser Coast health infrastructure is promised to expand by nearly $20 million in 2018-2019.
Real Estate Institute of Queensland's local expert, Damian Raxach, said the boost in jobs will inject more cash flow into the Fraser Coast.
"It's almost inevitable if this all goes as planned that the more people to move here, house prices to go up,” he said.
"There will be a bigger variety in type of construction and I suspect a change in what is being built too to suit that family unit,” he said.
"That's our biggest thing we really struggle with, if you look at the Sunshine Coast as a prime example.
"The employment created down there and the spin off that has created is just fantastic
"The extra injection into the local economy in itself creates employment in the spin-off effects.”
Key investments include the $7million for works to refurbish the Maryborough Hospital Emergency Department, and $11.9 million to complete construction of the new $42.5 million Emergency Department at Hervey Bay Hospital. These figures are expected to help unemployment in the area, which remained high at 9.6 per cent in June this year.
Despite major investment in the region, Mr Raxach warned people not to believe it would be a "silver bullet” to the long-term unemployment crisis affecting the Wide Bay's ability to attract families.
"It is all well and good saying the money is there but drastic changes don't happen over night,” he said.
"Employment is one of the key things holding us back. It all comes down to the employment, tenants have to work to afford pay rent.
"We can't retain young families who move here because there is not enough work opportunities for them.
"It is all well and good getting self funded retirees to the area but we need background in families.
"It is good to see investment in the region but we have to remember things like our vacancy rate up until a few quarters ago was very volatile.”
The report warns the current unemployment rate does not create an environment favourable to sustainable growth in property prices.
The current outlook of the house and unit sales markets is stable and heavily dependent on the regional economic fundamentals.
REIQ maintained the rental market outlook for the remainder of 2018 is positive as retirees continue relocating to the region.