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The Whitsundays property market is showing signs of growth, so much so that one national group has no available rental properties due to strong demand, not strong winds.
Ray White Whitsundays principal Mark Beale says it is now a “great time” for buyers.
“Tropical Cyclone Debbie has scared off some investors so right now there is slightly less competition. However, we expect this to change shortly,” Mr Beale said.
“We would like to world to know that the Whitsundays are open for business and while there are a lot of trees and vegetation damaged, there are already a lot of new leaves sprouting on the trees and it will be green again within 12 months.”
Mr Beale said the market is improving in the wake of the cyclone, due to the growth of people wanting a sea change or tree change.
“We have all the ingredients for a strong growth period over the next few years.
“It’s a booming tourism market, with an extra 200,000 seats added to flights in the last 12 months with direct flights.
“The value for money proposition for the current properties is outstanding, with two-bedroom apartments listed for sale under $115,000 that rents for $200-$250 a week. “
The change in the rental market is also fuelling sales, Mr Beale said.
“Early in 2016, the vacancy rate was 9 per cent and we had around 80 properties on our books that were vacant and about to be vacant, with tenants leaving these properties.
“By the end of 2016, it was a 4 per cent vacancy rate and just prior to the cyclone, it was under 3 per cent in our office.”
Just before the cyclone, Mr Beale’s office had about 25 properties on its books that were ready for occupants.
“Post-Cyclone Debbie, we now have no houses to rent and only about five apartments available. We expect these will fill in the next two weeks and we will have a zero per cent vacancy rate.
“This will of course put pressure on rental prices which will in turn bring more investors into the marketplace, further fuelling the sales numbers and most likely some capital gains.”
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