Mackay Property Market Update 2nd Half of 2020
In Q3 2020, the Mackay area recorded a median house price of $350,000 and a median unit price of $250,000. This represents annual (Q3 2019 – Q3 2020) median price stability for house, however units grew exponentially by 35.0%. Total sales between Q3 2019 – Q3 2020 declined by -7.4% for houses (to 125 sales) and by -10.6% for units (to 42 sales), however this is due to low levels of stock on the market and/or COVID-19 conditions. Positive median unit price growth suggests market resilience in the Mackay area, and well positioned for market recovery in 2021. Now is the time to transact.
In the 12 months to Q3 2020, average vendor discounting has widened for houses (-5.5%) and tightened for units (-3.7%). Mackay provides unique opportunities, where unit sellers can achieve a final sale price closer to their first list price, whilst buyers can still benefit from a discount. Now is the time to transact.
In September 2020, house rental yields in the Mackay area were recorded at 5.5%, well above Brisbane Metro (3.7%) and on par with Mackay LGA (5.4%). In the 12 months to Q3 2020, median house rental price grew by 3.9% to $395 per week. Average days on the market declined by 37.0% (to 17 days). This suggests a resilient rental market amidst COVID-19.
2 bedroom houses have provided investors with +3.3% rental growth annually, with a median rent of $310 per week.
In September 2020, Mackay recorded a significantly low vacancy rate of 0.6%, on par with Mackay LGA and sitting well below that of Brisbane Metro (2.0%). Vacancy rates in Mackay is now at a historical three-years low, well below the Real Estate Institute of Australia’s healthy benchmark of 3.0% and continuing to decline even amidst COVID-19 conditions. This confirms there is an increasingly healthier rental demand and a conducive investment environment in the area.