Why Mount Isa property is ripe for investors
The property market is booming in regional areas around Australia at the moment, and Mount Isa in north west Queensland is no exception. It’s the largest city in the world in terms of land size, and there are huge opportunities for both Mt Isa property investors and home builders.
The Mount Isa property market
Firstly, it’s important to understand the Mt Isa property market before you make any investment decision. The Leichhardt River divides the city into two distinct areas – ‘mineside’ and ‘townside’. The majority of the city is on the townside.
Mt Isa is well known as a mining town, but it’s also a tourist town. The Queensland government calls it ‘the oasis of the outback’.
Just over three-quarters of Mt Isa residents rent their accommodation, and investment properties are in high demand from both tenants and buyers. The median price of houses has increased by over 13% over the past 12 months.
Mount Isa vacancy rate for investment properties
Vacancy rates for Mt Isa investment properties are currently just over 1%. In mid-2020, some local real estate agents had no rental properties available for tenants at all. High demand, short supply and the higher than average incomes of Mt Isa residents help to drive up tenant rents.
This in turn helps to generate a health return for local landlords. Over the past 12 months, Mt Isa rental yields averaged over 7%, despite rising purchase prices.
New suburbs and additional housing
The strong demand for property in Mt Isa is helping to drive the development of new suburbs and additional housing. Healy Heights is a good example of a newer suburbs where homes are currently being built or have been built in recent years. New (or near new) homes can be especially attractive for tenants and generate a lucrative ROI for investors.
There have also been approvals for higher density residential developments in these newer suburbs by the Mt Isa City Council.
Mt Isa property forecast 2022
There has been strong demand from interstate property investors in regional areas like Mount Isa over the past 18 months. This trend is expected to continue as COVID-19 restrictions are eased, unemployment drops and the economy recovers.
Property investing in a mining town
Property investing in Mt Isa can be done with confidence. The long-term nature of mining leases in the region and Australia’s ongoing dependence on mining industry exports will ensure strong ongoing property demand.
Glencore’s Mount Isa Mine is one of the largest in the world and several other large mines in the region have operating leases that already extend 10 to 15 years into the future.
How we can help
If you’re looking for an investment property in Mt Isa or any surrounding areas in north west Queensland, our real estate agency can help. Jays Real Estate is based in Mt Isa and has been servicing the needs of property sellers, buyers and renters in the region for over 50 years.
Contact us today to talk with a real estate agent or property manager who has local knowledge you can trust.