Azúcar means sugar in Spanish but, in investment terms, it may as well mean the sweetest deal in town.
In 2006, the median price of units in Mackay grew 24.4% which is 17.5% more than the average in Queensland.* And with the Mackay population expected to grow at an annual rate of 1.6% through to 2026,** demand for apartment living is more than likely to rise in future. Add to that the fact that rents are increasing in Mackay City by more than 10%† in annual terms, and the future looks great for investors. Azúcar offers potential unlimited.
Property Overview
The key regional Queensland centre of Mackay is the new hotspot for property investors, with figures showing the price growth of apartments has easily outstripped capital cities.
- New research found Mackay had an average annual capital growth for apartments of 16.9% for the past five years. (Source: Herron Todd White, Comparative Market Research on Cairns, Townsville and Mackay, November 2007)
- This performance compared with an average price increase of 1.6% annum for apartments in Sydney, 5.6% per annum in Melbourne and 11.9% per annum in Brisbane over the same period. (Source: Herron Todd White, Comparative Market Research on Cairns, Townsville and Mackay, November 2007)
- Continuing strong economic activity and population growth in Mackay has also resulted in tight rental markets and rising rents.
In Mackay, investors and owner occupiers are discovering the benefits of inner city property, just as their capital city counterparts did more than 10 years ago.
Economic Overview
Unless otherwise indicated, the following data has been sourced from the Regional Economic Development Corporation (Mackay Whitsunday Region) – Regional Economic Report, June 2007.
Located halfway between Brisbane and Cairns, Mackay is the capital of central Queensland. In 2007 the region experienced a 42.5% increase in Gross Regional Product, the largest growth in the State.
- The region’s economy is resourced based – mining, agribusiness and tourism – but there is also significant industries in manufacturing, commercial and residential construction, marine, transport and storage, retail, property, business services and education.
- Mackay is the largest sugar producing area in Australia, and has one of Australia’s four sugar refineries and the largest bulk sugar terminal in the world. (Source: Mackay Canegrowers)
- The Mackay economy is buoyed by the strength of the local coal industry, the catalyst which is the global minerals boom. Mining in the region is an $8.1 billion industry employing almost 9,000. The city is a vital service centre for the mines of the nearby Bowen Basin, which produce the majority of the state’s coal.
- Horticulture, cattle, dairy, seafood and tourism industries are also important to Mackay’s economic base and this diversity has helped the city maintain its prosperity despite fluctuating markets and other challenges.
Employment and Population Overview
Unless otherwise indicated, the following data has been sourced from the Regional Economic Development Corporation (Mackay Whitsunday Region) – Regional Economic Report, June 2007.
- Mackay City has a population of around 78,000 residents. Mackay’s buoyant economy is driving the population growth and subsequent property market. The Mackay population will grow by an average of 1,500 people per year to 2026, equating to an increase of around 600 residences annually. (Source: REDC Report June 2007: ABS)
- Unemployment in the Mackay region fell to 3.2% in the March Quarter 2007. Queensland’s unemployment rate is 0.7 percentage points above that of the region. (Source: REDC Report 2007; DEWR Small Area Labour Markets, AECgroup. The data is derived through trending the unsmoothed series from DEWR.)
- Since 2001 the average weekly household income has increased 51.1% for the region ($1,343.95). This is well above the average growth of the State (35.4%) and is a likely reflection of the strength of the mining industry. (Source: REDC Report 2007; ABS and 2001 Census)