Real estate report: Mackay 'one to watch'

Real Estate Australia has named Mackay a 'regional boom town' for 2018 in a yearly report but professionals in the city want to steer clear of the label.

West Mackay is tipped for growth in an REA report, with properties like 17 Milne Lane on the market for $349,000.

REAL Estate Australia has named Mackay a "regional boom town” for 2018 in its yearly report - however, professionals on the ground want to steer well clear of the label.

Lumped in with the likes of Launceston, Ballarat and Orange regarding a short-term increase in demand for property, the 2018 Property Outlook report states Mackay is a market to watch in the coming year.

Figures show there has been a 10 per cent increase in the median house sale price in the past year, up to $330,000, and a 31.5 per cent increase in demand for property.

Quarterly prices have increased at 3.2 per cent.

Mackay REIQ chairman and director of Mackay Property and Management Services, Peter McFarlane, believes the city's property market is in a sound recovery phase, leading into growth. "I'd be a bit short of calling it a boom town,” he said. "We had a boom time leading up to things skyrocketing during the mining, then we've been in a nosedive, now it's turned around.

"It's obvious that people have the confidence back and we're seeing that in decision making and buying houses, that's what happening.

"We don't want it to boom, we want sustainable growth.”

Mr McFarlane said on-the-ground confidence, such as house flippers and investors, shows there is market security.

"When the market deteriorates like it does and prices drop, between 20 and 40 per cent, and things start to look like turning, you get astute guys flipping,” he said.

GW3 CEO Garry Scanlan would also like to steer clear of the boom-and-bust cycle and labelling.

"It's certainly a sign of recovery, we're coming out of a period of a low base, and it's all on the back of cyclical recovery of the coal price, the upswing associated with high-tempo activity in the resources and mining sector development of renewable, but it's premature to be calling it a boom,” he said.

"We're a resource, agricultural, tourism based economy and all those things are on a cyclical upswing at the moment and they're in a pretty good space, so you would expect the region would reap the benefit.

"What people are looking for is a steady recovery and a recovery to a new normal - I'm not sure what that is at the moment, but there's a period of reset with a readjustment from an extraordinary period. Steady and stable growth would be something looked upon pretty favourably.”

The report states that jobs growth is a key driver, and with the state's lowest unemployment rate, tourism and government beneficiaries, it says that it will continue to grow.

Suburbs set to move include West Mackay and Mount Pleasant, which have seen 4 per cent and 5.8 per cent increases in median house sales.

Originally published as Real estate report: Mackay 'one to watch'