Mining Town Property Forecasts
After the crippling slump in most mining towns in Queensland over the last few years, the Mackay Property Market is finally bouncing back. According to CoreLogic, Mackay has been the top area for quarterly growth at 8.3%, along with Townsville which was up by 6.6%. As properties become increasingly expensive coastally, many buyers have turned their gaze to mining town with regional dwelling values rising 1.1% over the quarter, outperforming capital cities.
Ms Kaitlyn Ezzy from CoreLogic states, “Regions like Mackay, Geraldton, and Townsville are seeing exceptional growth, driven by affordability advantages compared to our major cities, as well as lifestyle appeal. This will have contributed to the strong demand but even with the impressive growth, for those with the capacity to service a mortgage, they remain attainable with medians less than $600,000.”
“Rental markets where there’s been strong quarterly increases are experiencing a combination of strong tenant demand and constrained supply,” she said. “Despite challenges such as high interest rates, affordability pressures, and economic uncertainty in other parts of the country, momentum in these leading regional markets remains strong.”
Mackay and Townsville
The demand for homes in Mackay has been predicted to skyrocket as it increases in popularity each year. Mackay provides a cheaper alternative to buying or renting in the CBD, with multiple attractions, schools, and huge mining and sugar industries to provide unique opportunities for its inhabitants. After facing a slump in its property market, Mackay has bounced back in 2021 and is still growing.
The raw data for Mackay’s property market can be read as follows:
· Median price for buying a home: $455,000
· Median price for buying an apartment: $320,000
· Median price for renting a home: $530/PW
· Median price for renting an apartment: $400/PW
Additionally, the Townsville Property Market has the potential to be the best in Australia for the next few years as a result of its capital growth rate. There has been a constant demand despite the low supply, with many investors flocking to any vacancies. Sales in 2024 have been slow for houses in Townsville due to said limited supply. However, units have sold for between $241,000 and $500,000 on average.
These growing mining towns are predicted to continue their come back with many people moving from cities to more affordable, more remote suburbs. This growing popularity further stimulates the many industries and the economies, making them desirable places to plant roots in.
