Is Mackay a Good Place to Invest?

The regional city of Mackay is located on the east coast of Australia, 972 km northwest of Queensland’s capital Brisbane, bordering both Central and North Queensland. Mackay has always been a favoured destination for tourists and locals but is steadily becoming a focal point for real estate investors due to the region’s fast-expanding economy and potential for growth.

With property prices in Mackay having grown by 19.7% in the past 12 months - the answer is yes, Mackay is a fantastic place to invest in property in 2024/2025.

Mackay Demographics Overview

The population of Mackay is ~126,907 (ABS, 2023). The region has a compound annual growth rate of 0.7% — there has been an increase of 8,029 residents from 2013 - 2023. The median age of Mackay locals is 38 years old - the region is home to a culturally diverse community; many young professionals, families, and those who love living by the coast and enjoying the outdoors.

A Look at Mackay’s Real Estate Market

Mackay’s real estate market is enjoying double-digit growth rates for house prices and units, with average property prices sitting around $400,000 in 2024. Houses and units spend an average of time on the market of 24 days and 49 days respectively.

In 2021, the ABS recorded a total of 36,057 private dwellings in Mackay. According to the Queensland Government dwelling projections in 2023, Mackay is among the top 20 LGAs for growth and is projected to have a total number of 66,845 dwellings by 2046.

Median house price: $455,000 (+19.7% from November 2023 - October 2024) 

Median house rent: $540 per week (+12.5% from November 2023 - October 2024)

House rental yield: 6.2% 

Median unit price: $317,000 (+15.3% from November 2023 - October 2024)

Median unit rent: $400 per week (+5.3% from November 2023 - October 2024)

Unit Rental yield: 7.4%

Number of private dwellings: 36,057 (ABS, 2021) 

Reasons to Invest in Mackay Property

Growing economy 

Mackay produces more than one-third of Australia’s sugarcane. Aside from agriculture, Mackay is also expanding into the engineering, manufacturing, and mining service industries due to the presence of coal deposits in the Bowen and Galilee Basins. The Mackay Regional Council states that the local economy supports over 55,000 jobs, with an annual economic output of almost $22.3 billion. 

Future development  

The Mackay Regional Council is continually developing the region with upgrades to infrastructure and amenities, such as the 20-year Mackay Waterfront project that is set to enhance the metropolitan area of Mackay, creating more jobs and economic opportunities for the community. The QLD Government has also provided $250 million to continue developing Mackay Hospital and the public health services to the regions of Mackay, Isaac, and the Whitsundays.

Affordability

Mackay’s median house property price of $455,000 is more accessible than QLD counterparts of Gold Coast ($1.17 million), Brisbane ($995,000), Cairns ($667,500), and Townsville ($512,000). Yes, the area is developing and there’s been leaps in house prices - which indicate it’s only going to get more expensive to invest in Mackay in future. Mackay also boasts a low vacancy rate of 0.53% (2023), ideal for high rental returns.

New housing development

Mackay is a growing region bursting with new housing developments— 7,622km² of the region’s land is currently being developed for new homes. High-growth suburbs that investors can look at for a new home investment build are the Northern Beaches, Eimeo, and Ooralea, which offer a good mix of city conveniences, lifestyle amenities, and a coastal environment. 

With a competitive rental market, an expanding economy, and a rising population, Mackay is an attractive prospect for QLD real estate investors that will continue to evolve. Investors looking to capitalise on Mackay’s real estate potential in 2024 and 2025 should look into existing homes and new build opportunities with qualified agents and builders in the region.