New levels of affordability for Mackay: HTW

New levels of affordability for Mackay: HTW
New levels of affordability for Mackay: HTW

The dream of home ownership in Mackay has become that much easier, according to a report from the valuation firm, Herron Todd White (HTW).

It noted prior to 2013, Mackay had one of the highest median house values in regional Queensland sitting around the $430,000 mark in 2012.

Mackay had a reputation as a mining town and was often not on the radar for professions such as teachers, police, ambulance or entry level job seekers not related to mining because of the high rents and purchase price for dwellings.

"Even in our own business we found it extremely difficult to move our trainees to Mackay because of the high costs associated with housing," the HTW report noted.

However, since the downturn in the resource industry and flow on effects to the Mackay residential market, we saw significant falls in both house prices and rental levels across the board.

This downward cycle lasted well into 2016 and saw median house prices drop by over $100,000 to sit at around the $315,000 mark, with many properties available for under and in some cases well under $300,000.

While this result was has been difficult to take, it has presented opportunities in Mackay not seen in over 13 years.

The issue of affordability and the ability to move non- mining related staff and employees into the region has become easier.

"For example, we had an assistant valuer move to Mackay in 2012 to further her training and she was paying $375 per week rent for a small two-bedroom walk up at with poor quality tout, with virtually no prospects of being able to purchase," HTW said.

"This level of rent was unsustainable and she moved south to further her training.

"Since the downturn, we have been able to transfer one of our junior valuers to Mackay who now rents a 3-bedroom dwelling in Beaconsfield for $250 per week and is on the hunt to purchase a dwelling."

A four-bedroom house at 36 George Street (pictured above) sold recently for $410,000. the house was built in the 1920s.

Another four-bedroom house at 8 George Street changed hands for $420,000 earlier this year.

New levels of affordability for Mackay: HTW

HTW suggested this scenario is being played out across a variety of industries in Mackay.

"This new level of affordability isn’t just rewarding the lower end of the market," it said.

"We have seen this across most sectors of the market from first home owners to middle level upgraders, even to the top end prestige market.

"For example, in the boom to purchase good quality executive dwellings in the newer estates such as Northview Gardens, you were looking at the $600,000 plus.

"Since the market has fallen, we have seen a number of sales within the estate at between $450,000 and $500,000, which when combined with record low interest rates becomes more achievable."

Tags: 
First Home Buyers Mackay

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