February 2008

Mackay has recorded the highest five year rental increase for a two bedroom unit in Australia with the median rental price rising to a feverish 112.5 percent from $120 per week in Mar 2002 to $255 in December of 2007. Three bedroom rentals have increased a staggering 105.9 percent over the same period during which time demand has far surpassed supply.

According to the Tenancy Advice and Advocacy Service, rental costs expressed as a percentage of income mean that a young person on Youth Allowance spends an average of 78 percent of their weekly income on a one bedroom unit. Similarly, a single person on Newstart allowance would expect to pay 67 percent of their weekly income for a one bedroom unit.

Statistics do not reflect the fact the median rental price of $350 secures a poorly maintained property. The real market rental for a suitably maintained three bedroom house is closer to $450 per week.  Rentals targeting the mining industry in Moranbah are priced at $600-700 per week and sit vacant beyond the financial reach of residents. A high proportion of rental stock is taken by miners who use the housing as a base from which to commute for rotating shifts.  Regionally, mining companies have provided dongas for workers to the exclusion of their families.

The Department of Housing advised that they are moving away from a wait turn applications towards a tiered assessment of need with level A being the highest priority. Applicants who do not qualify other than on financial grounds will be advised that it is unlikely that they will be allocated a property.  The Department is currently refurbishing three motels which will provide single apartment style accommodation. Two projects are currently underway with tenders pending for the third.  

Mining Companies continue to book out most short term hotel or motel accommodation in the city and caravan park closures have also affected tourism in the area.

The Whitsunday Housing Company held its inaugural annual general meeting on 12 December 2007. They are currently developing 30 units of housing at an estimated cost of $3 million. 

New residential construction in the area is clustered approximately 10 kilometres north of the city centre in the form medium density suburban villages. Units on the marina are commanding a $600,000 asking price.  Riverside units command a $3.2 million price for a pent house or $300,000 for a one bedroom unit.

The future of the Mackay Showground remains uncertain with the housing network awaiting advice from the newly formed Urban Land Development Authority. 

Floods in the Mackay/Whitsunday region. Affordable, public, community and emergency housing will be high on the agenda of all service organisations due to the abnormal weather conditions the region has experienced in the past week or so. Rental accommodation will be at a higher premium than ever before with so many houses damaged by floods in the region.

 Emergency Services have visited an estimated 1900 damaged properties thus far.