PROPERTY POINT

The property valuers Herron Todd White put out a very instructive monthly snapshot of real estate prices, and changes, across the nation.

It’s based on the numbers, the sale prices, and for those of us who have a bit of an interest in what’s going on in the real estate sector, it is a very worthwhile read.

The most-recent update made it very clear that there are different things happening to markets throughout the country. There is not a uniform trend and certain regional areas are faring differently to big cities.

To illustrate this, October’s update said the “recent impact of increasing interest rates” has created a “pronounced drop in the median dwelling price”. But where? Not Mackay.

That reference was to places like Sydney and Melbourne.

It went on to say: “In the more affordable regional areas the recent strength of the market has been attributable in part to out of area purchasers who have viewed residential property as affordable.”

So increased interest rates are actually creating a higher level of buyer activity in affordable regional areas from people moving from expensive southern cities, particularly if those regional areas provide the services people need and the lifestyle they want.

I recently sold a property that had multiple offers in which three of the four buyers were from cities down south. The winner was a buyer from Melbourne who had just sold his house and was getting rid of a mortgage and moving to Mackay to be near the sea and have a more relaxed lifestyle.

Mackay is an attraction because it offers the services people require, it is affordable, it is a beautiful part of the country and a great place to live.

There is no doubt that interest rate changes have created nation-wide caution, but we can also see that those very changes are attracting buyers to our city and region.

Herron Todd White also includes a national property clock in their monthly market update, a snapshot of where various cities are in the price cycle. That property clock has the peak of the market at 12 o’clock, a falling market at 3 o’clock, the bottom of the market at 6 o’clock and a rising market at 9 o’clock.

In their housing property clock places like Melbourne and the Gold Coast are around the 2 o’clock mark, starting to decline. Sydney and Brisbane are at 3 o’clock, a declining market.

Where is Mackay in the property clock? At 9 o’clock, a rising market. So, when people say the property market is falling you need to be careful about which market you are actually talking about. Cairrns, the Whitsundays, Gladstone and Rocky are also at 9 o’clock.

When your see and hear on the national media about falling real estate prices they are not looking at our region. They are focused on the big cities.

Apart from interest from southern buyers looking for opportunities here, the big driver is our strong economy and the resources sector that continues to drive it. And that is looking pretty good.

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