The 30% price slump in mining town Mackay's Blacks Beach Cove: HTW

The 30% price slump in mining town Mackay's Blacks Beach Cove: HTW
The 30% price slump in mining town Mackay's Blacks Beach Cove: HTW

Since the downturn in the mining sector and an influx of investor house and land products, there has been very little investor activity in the Mackay residential market.

Property values of investor type products have fallen by up to 30%.

Prior to 2014, the residential market in Mackay was heated with both national and international out of town investors, according to the valuation firm Herron Todd White in their November review.

They recalled the out of town investors tended to favour house and land packages, or near new dwellings or units.

They said that a particular residential estate known as Blacks Beach Cove, located in Mackay’s northern beaches, was among those marketed predominantly to out of town investors during the better times.

"A typical modern 4-bedroom, 2-bathroom dwelling with double garage accommodation was priced between $450,000 and $550,000 and would achieve between $500 and $600 rent per week.

"Vacancy rates in the Mackay region were below 1%."

The valuation firm noted the "same 4-bedroom, 2-bathroom dwellings within Blacks Beach Cove are currently selling between $280,000 and $350,000 and achieve between $270 and $320 per week. Vacancy rates within the Mackay region are now in excess of 9%."

CoreLogic RP Data put the Blacks Beach median house price peak at $507,500 in 2012.

 

Joel Robinson

Joel Robinson

Joel Robinson is a property journalist based in Sydney. Joel has been writing about the residential real estate market for the last five years, specializing in market trends and the economics and finance behind buying and selling real estate.

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