Mackay Property Market Update 1st Half of 2022
In Q1 2022, Mackay recorded a median house price of $390,000, and a median unit price of $269,000. This represents annual (Q1 2021 – Q1 2022) median price growth of 9.8% for houses and 3.5% for units. Total sales slowed between Q1 2021 – Q1 2022, by -35.1% to 181 sales for houses and by -6.4% for units to 73 sales. Owner occupiers can benefit from real returns on capital investment, as median price growth has been fuelled by high demand and lower stock levels. The market is still undersupplied, creating an opportunity for developers with the ability to deliver ready-to-sell stock to enter the market.
Average vendor discounts between Q1 2021 and Q1 2022 have tightened for both property types, to -2.0% for houses and -2.7% for units. Market conditions in Mackay have shifted closer to meeting the vendors’ asking price. Strategic buyers can still benefit from a discount; however, time is limited.
House rental yields in Mackay recorded an attractive rate of 5.9% in March 2022, above QLD North Coast (5.7%) and Brisbane Metro (3.3%). With a lower entry price compared to Brisbane Metro, this is great news for investors - particularly as demand for rental properties have increased, with average days on market declining by -26.1% to 17 days in Q1 2022.
4+ bedroom houses have provided investors with +10.0% rental growth annually, achieving a median rent of $495 per week.
Mackay recorded a vacancy rate of 0.5% in March 2022, which is below QLD North Coast of 0.6% and Brisbane Metro 0.7%. Vacancy rates in Mackay have continued to plummet over the past 12 months, indicating increased demand coupled with limited supply in the market. Vacancy rates in Mackay have consistently under the Real Estate Institute of Australia’s healthy benchmark of 3.0%, even throughout COVID-19 trending within the 1.0% mark for the past 12 months. These key indicators create a conducive and sustainable environment for investors, due to quicker occupancy.