Residential real estate overview

Up until 2002, the prices of residential property in Mackay matched the ebb and flow of the sugar industry. However, in 2002, this all changed and house prices became firmly aligned to the growth of the coal mining sector in this region.

So when the price of coal started to take a battering, so too did medium house prices much to the disappointment of local home owners and investors.

Despite tough times in recent years, since July 2016 the sector has seen a substantial pick up in activity in the residential property market. This includes Mackay, Moranbah, Emerald and some of the other mining towns.

In the mining towns where there is a low volume of stock, prices are increasing although not to the same extent as the industry saw back in 2011 due to bank repossessions being sold. As most of the bank repossessions were finalised in early 2017 we are seeing prices increases as activity in the Bowen Basin mining sector heats up.

Buyers though are still nervous about the 2013 price plummet and offering sensible prices and indications are that if a property is well priced to meet the market, then it will sell quickly.

Residential property prices in Mackay have been modest due to the relatively high number of bank repossession properties still on the market.

The vast majority of bank repossession properties are no longer offered under $300 000, so this sector of the market has started seeing price increases.

Overall, prices in Mackay are still at historical lows and we are seeing investors looking to the region as the rental vacancies rates decline.A silver lining to the recent downturn is that the cost of living is still relatively low, making it easier to attract staff to the region and therefore enhancing the rental market.

Mark McGrath

Director
mmcgrath@mckayslaw.com
07 4963 0885