Parts of regional Queensland are on the cusp of a real estate revival, as rising property prices and strengthening economies offer opportunities for investors and developers.
As the strongest regional economic performer in northern Australia and North Queensland, Mackay is currently offering strong opportunities for property investors, and particularly for developers, according to Knight Frank.
Craig Stack, Knight Frank Partner and Head of the company’s Mackay and Townsville offices, said the time for taking on new development in the city was right.
“Opportunities are ripe for investors and developers across both the residential and commercial sectors, fuelled by rapidly forming demand,” he said.
“Mackay’s economy is performing really well – far better than any other regional location in Queensland and across northern Australia."
Mr Stack told WILLIAMS MEDIA Mackay has come back from the mining downturn.
“The region is experiencing very strong employment growth, driven primarily by the mining services sector."
More than 12,000 people were employed in June 2018 than in June 2015, lowering the unemployment rate to 2.7 per cent.
"This has re-established economic confidence across its business and residential community," Mr Stack said.
“Mackay retained a very strong average household income, even during the mining downturn, and things changed so quickly through 2018, with residential occupancies now the strongest in Queensland and rental growth very strong.”
According to the Real Estate Institute of Queensland (REIQ), the September 2018 REIQ Vacancy measure indicates a vacancy rate of only 0.9 per cent in the city.
Mackay posted a 5.6 per cent annual growth in its median house price, according to REIQ's late 2018 figures.
"We are confident this growth can continue for the moment," the REIQ advised.
With a $340,000 median house price, Mackay is still one of the most affordable coastal areas, with prices still at levels below the peak of the mining boom five years ago.
The Residential Tenancies Authority quarterly data shows residential rents growing by more than 10 per cent for all housing forms in each of the past two years.
“The residential market is performing well,” Mr Stack added.
With the local economy strengthening, Mr Stack said the chance to acquire well-positioned mixed-use sites is rare, and developers were pouncing on these properties.
“Developers are increasingly turning away from Sydney and Melbourne and looking elsewhere to invest, particularly regional areas, and Mackay is attracting a lot of attention,” he said.
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