The impact of COVID-19 pandemic on Mackay property market remains unclear: HTW residential
There is no doubt that the Mackay economy is heavily influenced by the resource sector in the Bowen Basin and associated service industries located in Paget, according to a recent Herron Todd White (HTW) residential report.
The current COVID-19 epidemic is going to have a negative impact on key drivers, so it will be interesting to see what impact this may have on the property market in the short to medium term, the valuation firm said.
The report notes Mackay enjoyed a significant and sustained mining boom which lasted until about 2012/2013 when a major downturn in the resource sector had a massive flow on effect on the Mackay economy and residential housing market.
There were definitely some very hard times with significant job losses. The residential market fell between 20 percent and 30 percent, with the median house price falling around $100,000 during this time.
"The downturn did have some positive effects in Mackay, allowing the economy to diversify and not be fully reliant on a booming resource sector," the valuation firm said.
Housing affordability became a real positive for the city, with workers who had been previously priced out of the housing and rental markets now able to enter the market.
Since 2017, the Mackay residential market stabilised, the report noted. Throughout 2018 and 2019, Mackay has seen large infrastructure projects (such as the Mackay Ring Road project), an improved resource sector and increased employment opportunities have seen improved market conditions in the residential sector.
Throw in historic low interest rates and all the ingredients are there for sustained growth in residential real estate in the short to medium term.
"The one big caveat to this is the current COVID-19 pandemic and the economic effects it might have.
"At the time of writing, there has been limited disruption to the major industries in Mackay and the Bowen Basin, however, should the virus make its way here and into the Bowen Basin resulting in large disruptions and possible mining shutdowns, the effects could become quite pronounced. I guess only time will tell," the valuation firm said.
A two bedroom townhouse in Mackay has recently been sold for $200,000.
Te 5/54 Goldsmith Street home (pictured below) was last sold in 2007 for $230,000.
The townhouse features raked ceilings, lock up garage, wet room, and gardens.
A new listing is a two bedroom unit situated on the fringe of Mackay CBD.
The 72sqm unit at 4/12 East Gordon Street (pictured below) has been listed for sale with a price guide of $160,000.
It comes with family room, courtyard, large bathroom and private courtyard.
