Mackay has been tipped as the best spot to buy a house in Queensland say property leaders as the beachside city shows signs of rising from the bottom of the property cycle.
LJ Hooker principal Brett Greensill said Mackay’s property cycle was clearly on the rise after a downturn, making it the ideal time for buyers.
“House prices in Mackay have come down in recent years and have now stabilised at the bottom of the market, with great potential to start to rise in the near future,” Mr Greensill said.
“I advise home buyers to look for regions that are just rising from the bottom of the cycle, and Mackay is definitely in that position at the moment.
“The housing affordability in Mackay coupled with the current record low interest rates makes for perfect buying.”
He said the recent mining downturn which saw masses of job losses in the region and spikes in vacancy rates, was not a cause for concern.
“The mining downturn has downturned,” Mr Greensill said. “And the mining sector has stabilised.”
Mackay Professionals principal Trevor Chapman said buyers were already taking advantage of Mackay’s bottomed out market.
“The bottom price is really hot at the moment – and it’s always the bottom of the market that moves first; we’re seeing that happen already in Mackay,” Mr Chapman said.
He said the bottom of the market is sitting at around $200,000, but it will not last long.
“All of my low stock is going, and it’s all from local buyers,” he said.
He said investors, however, have not appeared to catch on.
“Investors should be here already,” he said.
“We’re going to see them come in once the prices show signs of rising.”
Current high vacancy rates in Mackay could be a factor in why investors have been reluctant to enter the market.
Mackay’s Gardian real estate principal Eric Rickman said 20 to 30 per cent of buyers are coming from the south east corner of the state, which were mostly owner occupiers.
“Maybe the high vacancy rates are worrying investors – but we do have buyers from the south, they just aren’t all investors,” he said.
He said November was his best month for sales to date.
“In November we experienced our best month since we opened two and a half years ago,” Mr Rickman said.
“The market is on the up.”