MCP Principal Licensee Advises Regional Queensland is Booming, Offering High Rental Yields

Interstate property investors and first home buyers are turning their attention to the regional property market in central and north Queensland. The allure of affordable housing in limited supply and enticingly high rental yields have ignited a surge in interest across the area. From Cairns to Rockhampton and Mackay, local agents report an unforeseen Mackay real estate market boom.

Even smaller coastal communities like Yeppoon are experiencing the effects of this trend. With a current median house price of $590,000, reflecting a growth of 12.4% over the past year, Yeppoon exemplifies the rapid changes occurring in the market. Sandra Macklin, Principal Licensee at Mackay City Property, emphasized the prevailing shortage of housing stock, noting that properties are often selling within 14 days of listing due to strong demand.

Macklin observed that while owner-occupier buyers are dominant, investors have made a significant comeback in the past nine months. Additionally, the first-time homebuyer segment remains robust within their marketplace. This trend is echoed by Mat O’Brien, Sales and Marketing Consultant at Ray White Rockhampton, who finds the market’s behaviour surprising in the midst of an economic downturn.

O’Brien attributes the market’s resilience to the supply and demand dynamics. The tight building industry, coupled with soaring construction costs, has caused reduced property transactions. Consequently, many homeowners considering upgrades are now holding onto their properties, tightening the available inventory.

Nonetheless, O’Brien emphasises the high buyer demand, including an influx of individuals relocating to the area. David Forrest, Managing Director of First National Real Estate Cairns Central, observes that the unit market is experiencing greater buoyancy compared to previous years, particularly with a growing interest in two-bedroom units. He also highlighted the sweet spot for house investments in the range of $450,000 to $550,000.

Canstar’s report also spotlights the northern beaches Mackay suburb of Bucasia in its top 10 list. The median house price in the $400,000s reflects a remarkable growth of 10 per cent over the past year. The area offers rental yields exceeding 6 percent in a market where vacancy rates are below 1 percent.

According to CoreLogic’s August Regional Market Update, Mackay-Isaac-Whitsunday ranks among Queensland’s top seven regional areas for capital growth. Demonstrating an impressive 1.2 per cent growth in the past quarter, it outpaces Central Queensland (2.7 per cent) and Cairns (0.5 per cent). Sandra Macklin, Our Principal of Mackay City Property, emphasises the favourable conditions for investors.

“Vacancy rates are at 0.6 per cent, remaining under 1 per cent for the past three years. This environment is reminiscent of the mining boom in 2012, enabling property owners to secure attractive prices for their homes in remarkably short time frames. However, a significant challenge for investors lies in the limited availability of investment properties,” Ms. Macklin elucidated.

While annual dwelling sales in the Mackay-Isaac-Whitsundays region totalled 4,846 until May of this year, reflecting a 15 per cent decrease compared to the previous year, they still stand 35.9 per cent above the five-year average.

The scarcity of available properties poses challenges not only for investors but also for first-time homebuyers. This shortage spans all buying ranges, compelling first homeowners to act swiftly. Ms Macklin explained that the cautious nature of first-home buyers often clashes with the urgency of the market, leading to properties being sold to those who take quicker action.

She suggests that a desirable home in a popular suburb typically falls within the $350,000-$450,000 bracket. Notably, even the executive market is thriving amidst these conditions.

The regional property market in central and north Queensland is experiencing a notable surge in interest from interstate investors and first-home buyers. This trend is propelled by the appeal of affordable housing options coupled with the promise of impressive rental yields. Areas like Cairns, Rockhampton, and Mackay are witnessing unexpected growth, even in smaller communities like Yeppoon. The market’s resilience amidst economic uncertainties is surprising, driven by the supply-demand dynamic and a scarcity of available properties. Despite challenges, this trend underscores the enduring attractiveness of regional Queensland’s property market for a diverse range of buyers.

The surge of interest from interstate investors and first home buyers in central and north Queensland’s regional property market reflects a compelling convergence of affordability and potential high rental yields. This phenomenon signals a notable shift in real estate dynamics from major cities like Cairns to smaller coastal communities like Yeppoon. Despite economic uncertainties, the market’s vitality is sustained by supply and demand, showcasing the region’s enduring appeal as a property investment destination.

We invite you to seize the opportunity that central and north Queensland’s property market presents. Our local expertise and deep understanding of the region’s real estate landscape can guide you towards making informed decisions. Whether you’re a discerning investor aiming for lucrative returns or a first-home buyer seeking a foothold, our team supports you. Explore the available options, navigate the trends, and embark on your property journey with us. Contact us today to discover the exciting prospects in this thriving market.