Rental drought pushing buyers back to the property market

Buoyant sector giving renters the incentive to become owners

Ray White's Trevor Tippet toured a number of potential home buyers at the weekend. Picture: Ashley Pillhofer

INCREASED sales and greater confidence are driving optimism in the Mackay real estate market with some industry experts believing there will be solid growth in the months and years to come.

In its latest report, a property analyst from Herron Todd White said the region can be confident in the market movement of the residential sector.

"The Mackay residential market has continued to strengthen over the past 12 months,” they said.

"With increased sales volumes, reduced time on market and general optimism that the worst is behind us.”

But with the positive outlook on the residential front comes some challenging times for renters as supply struggles to keep up with demand.

Rental vacancy rates have been dipping below two per cent which Herron Todd White believes will draw investors back to the region.

"With rental vacancies being tight, we are starting to see an increase in rental values across the board.”

"It is considered that the once elusive investor will start to re-enter the Mackay market, with not only solid rental returns on increasing rents available, but the possibility of capital growth [is] now a real attraction.”

But this means that renters are feeling the squeeze.

Clare Duncan and Patrick Walsh are thinking about purchasing their first home, saying that one of the things that pushed them into the sales market was the state of the rental market.

"I am sick of paying rent essentially,” Mr Walsh said.

Ms Duncan agreed saying that rent is just going to keep going up.

"Everyone says it is just going to keep going up. It seems to be a good time property wise.”

The couple said they had noticed that in both sales and rentals, nothing seemed to stay on the market for too long.

"Places seem to be going quickly,” Ms Duncan said.

"We drove around yesterday evening to have a look and there are loads of sold signs.”

A variety of factors have contributed to the growing confidence in the Mackay market according to Herron Todd White.

One of the strongest influences for the boost comes from an improved resource sector.

This has enhanced employment opportunities which has been bolstered by larger infrastructure projects and an improved construction industry the report read.

Originally published as Rental drought pushing buyers back to the property market