Welcome to the first article in a new series we will be writing called Real Estate Review.  Our goal with this series is to educate our readers of real estate and investment opportunities that exist in some of Australia's fastest growing and developing areas.  Last week in our article "Housing Affordability, How do we Compare?" we came to the conclusion that real estate is at dangerously low levels of affordability in many of Australia's capital cities.  There are however many booming areas outside of our capitals that are still affordable.  The population in these areas is increasing, infrastructure is being upgraded & improved and their economies are expanding.  All of these factors are good signs for real estate investors.

First we will take a look at Hervey Bay.

The below information was compiled from Australian Burea of Statistics research conducted from the 2006 Cencus:

Hervey Bay Population:  52,218
Males:  25,477 (48.8%); Females 26,741 (51.2%)
Persons Born Overseas:  16% (Mostly from England - 6.0% and New Zealand - 2.9%)
Median Individual Income:  $341.00 per week
Median Household Income: $645.00 per week
Median Rent:  $190.00 per week
Median Housing Loan Repayment:  $1,083.00 per month
Average Household Size: 2.4 persons
Dwelling Owned or Being Purchased:  65.7%
Renting: 26.7%

The below information on population trends are estimates from the department of local government and planning:

The population of Hervey Bay has increased 25.6% since 1996.  Future predictions estimate a further increase of 31.5% by 2016.  These growth rates make Hervey Bay one of Australia's fastest growing cities.  As well as population growth Hervey Bay's economy is being fueled by tourism.  An estimated 1.23 million stay overnight tourists visit Hervey Bay per year as well as a further 1.4 million daytrippers.

Hervey Bay has a diverse array of industry boasting everything from heavy manufacturing to agriculture, fishing and construction.  Its primary industry is sugar cane, earning the local area some $30 million per year.  Other agricultural activities include fruit and vegetable crops and grazing.  Hervey Bay also includes a variety of industries such as tourism, education, health, information technology, aviation and marine manufacturing, aquaculture, fishing, seafood processing, treated pine timber, light engineering and tourism. 

Recent completion of massive redevelopment and upgrades to the Hervey Bay airport means that it can now accept direct flights from Sydney and connecting linkages from many other Australian cities.  Jetstar and Virgin Blue fly regularly from Sydney to Hervey Bay.  The redevelopment of the airport has been seen as a major catalyst to development in Hervey Bay.  Since it's completion many large commercial and residential developments are underway or lodged with council.  With the upgrade of the airport comes a new $100 million 42 hectare industrial park.  The industrial park is expected to be complete in 2009 and supply the area with more than 2000 jobs.

We took a look at real estate prices for Hervey Bay through various web pages.  We found that it is quite easy to get a 4 bedroom 2 bathroom brand new home in some of Hervey Bay's new and up market estates for between $320,000 & $350,000.  Modern 2 bedroom entry level units can go from anywhere between $250,000 & $350,000.