Mining cuts may affect Mackay market
Investors with properties in Mackay, or considering purchasing in the area, need to be diligent in the face of mining job cuts, according to a leading property research house.
While the news in June of 450 job losses this year will certainly have an impact on the market, the Mackay region “continues to deliver strong yields”, said RP Data analyst Cameron Kusher.
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Mr Kusher said the Mackay region is likely to be less attractive from an investment perspective with the slowing of the mining and resources sector.
“Although the resources sector is slowing, the region continues to extract minerals, so a housing demand will remain. However, it won’t be as strong as it has been in the past,” he said.
“As with any cut across a key industry of a region, demand for property across the area will potentially be affected. However, there are other key industries across the region.”
Kim Clarke, managing director of Xcel Properties and developer of Mackay’s Plantation Palms, said the local economy was diverse enough to support the property market following employment cuts in mining.
According to last year’s figures, he said, about 8,500 Mackay locals were employed in the mining sector. However, retail trade had nearly 8,000 employees, followed by 7,000 in construction and 6,000 in tourism and food services.
“So when you go through it and take mining as the number one employer, retail is about the same. Eleven per cent of the population is in mining, and 10.8 per cent is in retail,” he said.
“Mackay regional council is forecasting that they believe 66,000 new people will come to the town by 2030, and that means 1,800 homes are needed every year.
“The first home buyer market within Mackay continues to remain strong as a result of the $15,000 Great Start Grant and low rates, and it’s important for us to keep that momentum going. Keeping up with market fluctuations is the key to being a successful developer, and that’s exactly what we’re achieving right now.”
