In news that will surprise few home owners in the North West, a new report says the Mount Isa property and rental market has weakened by over a third in the last three years with the likelihood it may not have bottomed out.
The Herron Todd White “Townsville in Focus August 2016” mainly looks at Townsville but also has a section on Mount Isa’s market and the prognosis is not good.
“The Mount Isa property market has been progressively weakening over the last three years, with average sale volumes remaining low and prices tending to soften,” the report said. “The median house price trend has lowered from a trend level of $383,200 in the June quarter of 2013 to $248,600 during the June quarter of 2016, an apparent reduction over the three years of 35%.
As with house prices, rents in Mount Isa have also lowered significantly over the last three years, the report said.
“During the June 2016 quarter the median house rent came down to $355 per week while the median unit rent reduced to $215 per week,” it said. “House rents have reduced by 37%, and unit rents by 43%, over the last three years”.
The report said the rent reduction was remarkably similar to the house prices reduction in that time meaning that investor yields are being preserved.