Mackay property hotspots for 2016 identified

SOUTH Mackay, West Mackay and Glenella have been flagged as potential hotspots for first home buyers and investors in 2016.

By Brigidsimeoni

4 min read

January 16, 2016 - 6:00AM

News Regional Media

Business

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SOUTH Mackay, West Mackay and Glenella have been flagged as potential hotspots for first home buyers and investors in 2016.

Buyers hoping to get more bang for their buck are transforming bargain properties in areas close to the CBD.

The median sale price for houses in the September quarter was $345,000, down 2.8% on the last quarter.

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Year on year the median sale price for Mackay homes dropped 10.1% and it was 8.8% lower than five years ago.

South Mackay was the only suburb to record an increase during the September quarter with a 0.5% rise to $275,000.

Elders Real Estate Mackay principal Sally Richards said South Mackay prices could be on the way up because it was in an ideal location.

"There's always a desire to live closer to town," Mrs Richards said.

"There are lots of cheaper homes in that area that they can pick up and renovate.

"It's good for investors and first home buyers."

Mrs Richards said West Mackay, which had a median sale price of $337,500, was also a growth suburb in a central area.

"West Mackay is always a popular area because it has lots of nice Queenslander homes and people like to get them and renovate," she said.

She said Glenella, with a median sale price of $522,613 for the quarter and up 8.6% on a year ago, was another one to watch.

"Glenella does quite well because it has a lot of the nicer houses with the pool, the shed and is something a bit more modern and close to a lot of schools," she said.

"It's a popular area for people that have sold their home and want to upgrade and who are coming to Mackay from other areas and want a nice house that is close to schools.

"There are good family homes and quality homes that are close to shopping centres."

Mrs Richards said she expected Glenella to perform strongly in 2016, with new Bunnings and Masters hardware stores in the area.

"There is a lot of growth in the Glenella area," she said.

Looking ahead, she said Rural View was another area with investment potential.

"I think Rural View is probably a good place to look at too because there are some lower priced homes in there and there are new schools in the area and a shopping centre," she said.

REIQ Mackay zone chair Peter McFarlane said buyers were gravitating towards "regional hubs" near schools and good shopping and sporting facilities.

"They're moving closer to the city centres," he said.

Mr McFarlane said he expected to see more stability in the market this year and also anticipated more movement in house sales.

"We'll start to see sales increase in the $450-500,000 range - from people who have sold their property to first home buyers and are looking to buy a second home," Mr McFarlane said.

"Every buyer becomes a seller and every seller becomes a buyer."

Nearby amenities key in drawing buyers to Mackay

HOUSES close to schools, shops and sporting fields are in demand as Mackay entices buyers looking for an affordable way into the market.

Sales activity was up 9% for the September quarter and West Mackay, South Mackay, Andergrove, Bucasia and Glenella were among the suburbs where the most houses were snapped up.

There were 180 house sales and 33 acreage property sales during the quarter.

PRDnationwide Mackay principal Greg Chappell said West Mackay, which led the number of sales, had always been a sought-after area.

"It's always had that upper level of desire because it's so close to the CBD, the highway in and out, so convenient to the airport and rail, schools, doctors and it's not far from the beach. It's got everything going for it," he said.

West Mackay had a median sale price of $337,500 for the quarter and Mr Chappell said properties in that range were a good deal.

"Now is a great time for people to buy in those prime suburbs," he said.

Mr Chappell said South Mackay had similar kudos in terms of convenience and proximity to services, along with Glenella.

He said people in the market were a combination of first home buyers and people renewing and upgrading.

"They're good suburbs and well renowned for extra turnover," he said.

Andergrove was also attracting families settling in the area.

"Andergrove is a massive expansion area for families," Mr Chappell said.

"It has all the conveniences of family living - parks, schools, doctors and shopping centres."

Mr Chappell predicted these suburbs would continue to sell well in 2016 and the market would improve after a tough few years during the mining downturn.

"2016 is going to be the move forward year for Mackay," he said.

REIQ Mackay zone chair Peter McFarlane said the trend in the local market had shifted from investors to owner occupiers, particularly first home buyers.

Mr McFarlane said West Mackay's location and easy access to sporting facilities made it appealing while Glenella was also in a popular area central to the Mount Pleasant Shopping Centre.

Ooralea was ideal for workers in the Paget industrial hub.

He said major projects in the pipeline that would bring jobs to the region were expected to have a big impact on the market.

"We're on the edge of some strong announcements in relation to infrastructure projects," he said.

Plans to introduce international flights from Mackay's airport were building momentum and plans for port expansion were also promising.

Mr McFarlane expected an international airport to have a significant flow-on effect on the market by making the city more accessible and bringing more visitors.

SOUTH MACKAY

Size: About 7sq km with four parks.