Coastal house prices enjoy their place in the sun
Andrew Fraser
18mar06
QUEENSLAND coastal centres are the hot property of Australian real estate, with house prices continuing to rise despite the market having cooled in southern cities.
House prices in Townsville, Mackay and Rockhampton, which are close to coal mines in the Bowen Basin and benefit greatly from the mining boom, have gone up by over 20 per cent in the past year.
Capital city house prices have either fallen or risen only slightly over the same period. Figures released yesterday by property analysts Residex show that in the 12 months to the end of February, house prices in Sydney went backwards by 3 per cent while prices rose in Melbourne by 5.7 per cent and in Brisbane by 5.1 per cent.
But the same survey also showed prices in regional Queensland had risen by an average of 13.2 per cent, well ahead of the average 4.7 per cent rise in rural Victoria. Over the same period, prices in country NSW went backwards by 0.16per cent.
A more detailed breakdown of median house prices in rural Queensland, undertaken by the Real Estate Institute of Queensland, showed big increases in Townsville (20.5 per cent) and Rockhampton (26.3 per cent).
But the biggest rise was in the north Queensland town of Mackay, where
a combination of the mining boom and the seachange phenomenon driving
Australians to the coast has seen houses prices rise 34 per cent in the
past year.
While Townsville, Mackay, and Rockhampton are targets for retirees who
want a good life in the sun, the major catalyst of the price growth is
the nearby coal mines, as all three cities are bases for fly-in, fly-out
mining operations as well as logistic bases for the coal mines.
Property agent Gai Mylonas of Elders in Mackay said about three-quarters
of the inquiries she received were from people involved in the mining
industry.
"It all changed a few years ago when they were able to work four days
on and four days off," Ms Mylonas said. "When they're working they live
on-site on the mines, but in that time off they're able to live here.
Most of the mines are close by - some are less than two hours' drive."
Salary packages of more than $100,000 are common in the mining sector
but bargain houses in the coastal cities close by the mining areas are
becoming few and far between.
Ms Mylonas said a three-bedroom house on the beach was on the market
for $550,000. "That's still a good price ... but there's still some people
who come up here and expect prices to be a lot lower than what they were,"
she said.