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First Quarter │2013

MACKAY AREA Property Watch®

MARKET INDICATORS

Change from Last Year Half Year

HOUSE SALES

HOUSE MEDIAN

HOUSE RENTS

LAND SALES

LAND MEDIAN

UNIT RENTS

Indicators are based on the year ending 31 October 2012,

except for rental indicators which are based on quarterly data

ending 31 December 2012.

KEY HIGHLIGHTS

Sales levels dropped off 14 per cent

over the six months, however still

enjoyed a nine per cent increase of the

October 2011 period. This strong

showing has been consistent over the

past ten years, with the Area riding on

the back resource sector.

Nearly all land sales in the Mackay

Area have come from newer housing

estates in suburbs located within 15km

of the Mackay CBD such as

Beaconsfield, Blacks Beach, Eimeo,

Ooralea, Rural View and Walkerston.

MACKAY AREA MARKET OVERVIEW

The following Property Watch report is the result of an investigation into the

historic and current residential real estate market trends of the Mackay Area. For

the purpose of this report, the Mackay Area will look at the Local Government

Area of the Mackay region.

In the six month period ending October 2012, the Mackay Area continued its

strong run of form, recording a median house price of $436,050, an increase of

one per cent on the previous six month period and an increase of five per cent

over twelve months. Sales levels dropped off 14 per cent over the six months,

however still enjoyed a nine per cent increase of the October 2011 period. This

strong showing has been consistent over the past ten years, with the Area riding

on the back resource sector. Since the Global Financial Crisis the Area has gone

from strength to strength through consecutive periods of price growth and

unrelenting demand. As Mackay is so central to a hub of mining activity and

continued economic interest driving further infrastructure projects, the Area will

continue to attract strong levels of demand.

MACKAY AREA HOUSE SALES CYCLE

Prepared by PRDnationwide Research. Source: PDS

Observing the House Price Points chart, in 2012 there has been a shift to the

higher end of the housing market, with houses priced above $500,000 receiving a

six per cent boost compared to the six month period ending October 2011. At the

same time, the $300,000 to $349,999 price bracket fell by five per cent to account

for 11 per cent of transactions. This upwards movement in price reflects the

rising median family income of the Mackay LGA, which according to the 2011

Australian Bureau of Statistics Census, sits approximately 11 per cent above the

median family income for Australia as a whole. Combined with increased

investment in infrastructure to support the Area’s growing population, it is likely

this price range will remain popular in the short to medium term.

$436,050

$0

$50,000

$100,000

$150,000

$200,000

$250,000

$300,000

$350,000

$400,000

$450,000

$500,000

0

200

400

600

800

1,000

1,200

1,400

200

2 O

CT

200

3 A

PR

200

3 O

CT

200

4 A

PR

200

4 O

CT

200

5 A

PR

200

5 O

CT

200

6 A

PR

200

6 O

CT

200

7 A

PR

200

7 O

CT

200

8 A

PR

200

8 O

CT

200

9 A

PR

200

9 O

CT

201

0 A

PR

201

0 O

CT

201

1 A

PR

201

1 O

CT

201

2 A

PR

201

2 O

CT

Med

ian

sale

pri

ce

Nu

mb

er

of

sale

s

Half year period

Number of sales

Median

Prepared by PRDnationwide Research. Sources: PDS, Residential Tenancy Authority. PRDnationwide does not give any warranty in relation to the accuracy of the information contained in this report. If you intend to rely upon the information contained herein, you must take note that the information, figures and projections have been provided by various sources and have not been verified by us. We have no belief one way or the other in relation to the accuracy of such information, figures and projections. PRDnationwide will not be liable for any loss or damage resulting from any statement, figure, calculation or any other information that you rely upon that is contained in the material. Prepared by PRDnationwide Research © All medians and volumes are calculated by PRDnationwide Research. Use with written permission only. All other responsibilities disclaimed. © 2013

Research Analyst │Matt Ballam P (07) 3026 3356 F (07) 3166 0456 E mattballam@prd.com.au PRDnationwide Mackay │ P (07) 4951 2588 F (07) 4951 1351 W mkyreception@prd.com.au

Your home of property knowledge www.prdresearch.com.au

The Unit market for the Mackay Area has historically been a more volatile market

when compared to the housing and land markets. However, in more recent times

this market has plateaued, seeing minimal changes to median price and demand

remaining relatively consistent. For the October 2012 period the Area recorded a

median price of $325,000, seeing no change from the previous April 2012 period.

Demand for the six month period ending October 2012 fell 14 per cent, with 190

transactions recorded, however was up nine per cent over the twelve months.

The most popular price point for the Unit market remains the $250,000 to

$299,999 bracket, which accounted for 21 per cent of sales (up four per cent from

the previous six month period).

In the October 2011 and April 2012 six month periods, the Mackay Area land

market demonstrated astonishing growth, experiencing unprecedented growth in

sales combined with significant median price increases. In the period ending 31st

October 2012, the median price has continued its surge, increasing a further five

per cent on the previous six month period. Conversely to this, the number of

sales decreased a dramatic amount, falling 61 per cent from 858 recorded

transactions in the April 2012 six month period down to 336 recorded

transactions in the most recent October 2012 six month period. Nearly all land

sales in the Mackay Area have come from newer housing estates in suburbs

located within 15kms of the Mackay CBD such as Beaconsfield, Blacks Beach,

Eimeo, Ooralea, Rural View and Walkerston. With the resource sector already

beginning to flatten out, sales levels will remain steady at more sustainable levels

compared to the huge spike seen in the April 2012 period. Observing the move

to these housing estates, there has been an increase in demand for smaller block

sizes, as blocks 400sqm and under accounted for 15 per cent of transactions for

the October 2012 period, an increase of six per cent on the previous period.

MACKAY AREA LAND SALES CYCLE

Prepared by PRDnationwide Research. Source: PDS

Since December 2010, median rents for the Mackay LGA have risen across all

dwelling types, with many experiencing consecutive years of growth (although the

exception of two and three bedroom townhouses). Unsurprisingly, this rental

growth has hinged largely on the success of the Australian resource sector, with

workers for the mines in high demand, and companies having to look outside the

immediate township to satisfy their employment needs. As such, the influx of

temporary workers has led to high demand for rental accommodation, thus

pushing rental prices higher. The biggest jump in median rental price was seen

in three bedroom townhouses, which in one year from December 2011 to

December 2012 grew $95 to $500 per week, representing growth of almost a

quarter (23 per cent) in a single year.

HOUSE PRICE POINTS

Prepared by PRDnationwide Research. Source: PDS

LAND PRICE POINTS

Prepared by PRDnationwide Research. Source: PDS

MEDIAN RENTS – MACKAY LGA

Prepared by PRDnationwide Research. Source: RTA

$204,500

$0

$50,000

$100,000

$150,000

$200,000

$250,000

0

100

200

300

400

500

600

700

800

900

1,000

200

2 O

CT

200

3 A

PR

200

3 O

CT

200

4 A

PR

200

4 O

CT

200

5 A

PR

200

5 O

CT

200

6 A

PR

200

6 O

CT

200

7 A

PR

200

7 O

CT

200

8 A

PR

200

8 O

CT

200

9 A

PR

200

9 O

CT

201

0 A

PR

201

0 O

CT

201

1 A

PR

201

1 O

CT

201

2 A

PR

201

2 O

CT

Med

ian

sale

pri

ce

Nu

mb

er

of

sale

s

Half year period

Number of sales

Median

3%

7%

14%

22%

19%

11%

8%

16%

5%

4%

14%

21%

19%

13%

8%

16%

3%

4%

16%

21%

18%

17%

8%

13%

3%

3%

11%

20%

19%

17%

10%

17%

3%

4%

11%

19%

17%

17%

10%

19%

0% 20% 40% 60% 80% 100%

Less than$250,000

$250,000 to$299,999

$300,000 to$349,999

$350,000 to$399,999

$400,000 to$449,999

$450,000 to$499,999

$500,000 to$549,999

At least$550,000

Proportion of total sales

Pri

ce

po

ints

2010 OCT 2011 APR 2011 OCT 2012 APR 2012 OCT

13%

45%

21%

8%

3%

3%

1%

6%

9%

58%

19%

3%

2%

2%

1%

6%

16%

60%

15%

3%

2%

1%

3%

11%

49%

32%

4%

1%

1%

1%

7%

40%

31%

10%

4%

2%

1%

5%

0% 20% 40% 60% 80% 100%

Less than$150,000

$150,000 to$199,999

$200,000 to$249,999

$250,000 to$299,999

$300,000 to$349,999

$350,000 to$399,999

$400,000 to$449,999

At least$450,000

Proportion of total sales

Pri

ce

po

int

2010 OCT 2011 APR 2011 OCT 2012 APR 2012 OCT

250

295

420

320

410

310

390

470

260

330

460

450

405

360

450

530

280

360

475

400

500

380

460

550

0

100

200

300

400

500

600

Flat 1 Bed

Flat 2 Bed

Flat 3 Bed

Townhouse 2 Bed

Townhouse 3 Bed

House 2 Bed

House 3 Bed

House 4 Bed

Median weekly rent

Dw

ellin

g t

yp

e

2010 DEC 2011 DEC 2012 DEC