Newspaper article The Daily Mercury (Mackay, Australia)

Investors Hold Firm to Steady Market

Newspaper article The Daily Mercury (Mackay, Australia)

Investors Hold Firm to Steady Market

Article excerpt

Kim Waters

kim.waters@dailymercury.com.au

HOUSE values in Mackay are holding firm despite a glut of investment properties clogging the market.

But Herron Todd White director Michael Denlay, a certified practising valuer, said while investors appeared to be "holding their nerve" the major risk to the market was whether they were prepared to continue to accept lower rental returns in the short-term future.

Mr Denlay's comments were in response to a story in Saturday's Daily Mercury stating that there were up to 1000 investment properties now vacant in the region after a building campaign described as over-optimistic by the Housing Industry Association's Mackay branch.

"Should a large number of investors decide they do not want to accept this reduced yield, or interest rates begin to rise, it has the potential to increase supply of houses for sale and have a direct negative effect to the Mackay market," Mr Denlay said.

He said at the moment house values were "holding up fairly well" with only small, isolated reductions from 5% to 10%. …

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.