Investing in a New Build vs. Existing Home in Mackay
Mackay’s rapidly growing property market has earned a reputation as an ideal destination for real estate investment. Median house prices across Mackay have increased by 32.96% over a two year period since July 2023, to $597,000 in July 2025. The Mackay region also has an average vacancy rate of 0.67%, well below the state average of 0.9%.
One consideration for property investors looking to get the most value from money is the value of investing in a new build vs an existing home in Mackay.
Investment Opportunities for New Home Builds
Building a new investment property has become an increasingly lucrative option for regional markets like Mackay. Mackay is undergoing infrastructure development to enhance the livability of residential areas across outer city communities, including Walkerston, Marian, Mirani, and Sarina, as reported in the Mackay Region Planning Scheme.
Known as the Emerging community zone, these areas are slated for residential development over the next 20+ years to meet Mackay’s growing population. The local population in the Mackay region is projected to increase by 50% from the current estimate of 120,000 to 180,000 by 2036.
Investing in a new home in Mackay allows investors to buy land early and benefit from future growth. New homes also feature modern designs and amenities that appeal to and attract tenants.
On average, the cost to build a new home in Mackay in 2025 ranges from $2,200 to $4,200 per square metre, depending on the size and execution of the build. As demand for housing in the region continues to rise, costs to build in Mackay will increase.
The good news is that new homes in Mackay are covered by a builders warranty under the Queensland Building and Construction Commission’s requirements. The warranty for new homes provides coverage for any building defects and major maintenance issues in the property for 6 years and 6 months. This is especially beneficial for investors, as it greatly reduces early maintenance costs and risk.
However, investors who invest in a new build may have to contend with building approval delays. ABS data shows that the number of annual building approvals for new houses in Mackay has declined from 646 in 2021 to 276 in 2024. One solution is to work with a local builder that offers house and land packages for investment, such as our sister company, Builder Direct.
Investing in Existing Homes In Mackay
There are an estimated 52,200 private dwellings across the Mackay region, with 26.27% of residents renting. Those looking to invest in an existing home in Mackay can expect median house prices of $597,000 and median unit prices of $350,000.
Investing in an existing home allows for rental returns sooner as the property will be ready to rent. Inner-city suburbs like North and West Mackay are supported by an established neighbourhood with schools, shopping, and amenities nearby.
However, an existing home comes with ongoing costs for repairs and maintenance which, depending on the age and condition of the home, can add up. High maintenance costs can eat into expected investment returns.
Older homes in Mackay (built before the 1980s) may no longer meet modern building standards for the region. Mackay is classified as a Wind Region C tropical cyclone area, and all new homes in the region must be built according to the standards set by Queensland’s Cyclone Resilient Building Guidance. This is a significant risk that investors must be aware of when considering an investment in an existing home in Mackay.
The decision between investing in a new build vs an existing home in Mackay comes down to your individual investment goals and budget. If you are looking to build a new home for investment in Mackay, work with a trusted builder like Cougar Homes. We can help you build your ideal investment property from our curated design range or with a custom design. Get in touch with our team today to learn more about how we can build your next investment in Mackay.