This coastal town is located about half way between Cairns & Brisbane, originally a sugar cane town, Mackay now enjoys the diverse benefits of other industries supporting it. Only a 1.5 hour drive from Airlie Beach, the gateway to the Whitsunday Islands, and a 2 hour drive to the thriving hub of the mining activities of the Northern end of the Bowen basin.
Only few regions in the mining industry get to identify themselves, as Bernard Salt would classify, a muscle town. That is, the strength of the industries and services of the town are vital to the efficiency and productivity of the enormous minerals and resources sector that is rapidly expanding all throughout regional QLD. Separating themselves from a “motel town” is something that takes decades of infrastructure investment and smart governing on a local and state level.
The Mackay regional council has a population of just over 120,000 people. With unprecedented growth expected over the next 20 years. It is poised to be one of the largest growth regions by in QLD over the next decade. Mainly attributed to the benefits of the mining industry, people will choose to call Mackay home rather than living in a “motel town” closer to work where lifestyle, education and diversified employment are not comparable to that of a regional centre in many ways.
These factors make what I believe to be a property investor’s haven, especially considering the performance results of many areas across Australia as of late. Mackay is further developing itself as a vital muscle town to a diverse range of expanding, prosperous industries. With new shopping centres opening and expanding, along with educational opportunities, the current economic climate in Mackay is upbeat and making a strong progression towards its goal of being one of the highest growth regions in QLD over the coming decades. In 2009-2010 The Mackay region (Mackay-Isaac-Whitsundays) generated over $18.1 billion in economic value.
In the below Development Register from REDC, there is an outstanding amount of private and government investment to come in the region of Mackay and its surrounds. It appears that a significant amount of development is planned and occurring to achieve the predicted growth levels. The main factor that will hold communities such as Mackay, Emerald & Gladstone back is the slow release of land and developments which will hinder the population growth. Fortunately enough, as is shown below, the Mackay Regional Council are extremely co-operative in ensuring this problem does not exist.
Whilst you could assume that such aggressive levels of land releases could hinder capital growth in a region like Mackay, my opinion is that this won’t be the case. Mackay will continue to have a sustained, long term future when it comes to housing. Capital growth will be the envy of many property investors around Australia, whilst rental yields should get stronger. As an investor, you need to recognise the importance of a region like Mackay and invest for its security and long term growth that it will provide. It does not provide an investor with the rental yields seen further inland like Moranbah and Dysart, if it did, you would not see so much economic and infrastructure development that helps sustain and take Mackay in to the future. Muscle towns must provide affordable, quality housing to people, that’s why it’s a muscle town.
People use, and will continue to use Mackay as a home town. Many will bus or drive in from the mines in the north of the Bowen basin for their shifts, and returning home to spend their pay cheques. As Mackay provides a lot of the trades, services and equipment to the Northern Bowen Basin, the jobs in this sector will grow massively in the coming years, providing direct employment within the mining industry whilst living and working in MacKay. Couple this along with enormous external economic contributions that the mining sector provide to the rest of the economy, it is not hard to see how and why Mackay is poised for unprecedented growth in the coming decades.
As a property investor, I take the view that Mackay is a place for long term buying in order to capitalise on continuous growth in housing prices. Whilst holding property there, you should find yourself fairly close to being neutrally geared (after tax) at capital value for the first couple of years until CPI takes you into positively geared territory. Whilst on a local level, “rents are rising dramatically”, this seems to be at a more subdued pace than other mining regions. However, over the next 5 years as we see many of the below projects begin construction; a large reliance will fall on Mackay to provide the goods and services to make all this possible.
When it comes to areas for investing, the Northern side of Mackay is where a lot of the current development is occurring, with a little bit to the west. However, for a simplistic approach, I believe that the Northern beaches areas and towards the CBD will be the most popular places to live as they provide proximity to all Mackay has to offer with the beach lifestyle to the North. However, I don’t think that capital growth will differ that much within the different regions as the population growth will put significant demand on the housing market and no matter what property you have, there will be a need for it.
MACKAY POPULATION GROWTH
MACKAY REGION POPULATION GROWTH
DEVELOPMENT REGISTER (www.redc.com.au)
| PROJECT NAME | DETAILS | PROPONENT | EST. COST (M) | TIMING | STATUS | ||
| AGRIBUSINESS | |||||||
| Cogeneration plant | Construction of a 36MW cogeneration plant at racecourse Mill | Mackay Sugar Pty Ltd | $120 | 10’-13’ | In progress | ||
| Ethanol Project | Installation of a 600ML pa fuel ethanol plant at racecourse mill | Mackay Sugar | $85 | 2015 (completion) | Not started | ||
| Sarina Distillery Upgrade | Fuel-grade ethanol production to be upgraded from 38 million litres to 60m litres a year at Sucragen distillery Sarina | Conneq Infrastructure Services Aust | $18 | 08-09 | completed | ||
| TOTAL AGRIBUSINESS | | | $223 | | | ||
| COMMUNITY INFRASTRUCTURE | |||||||
| Botanic Gardens Upgrade | Redevelopment of Mackay Botanical Gardens including developments of an outdoor performance centre | Mackay regional council | $13 | 11’-12’ | Not started | ||
| Mackay Base Hospital Redevelopment | New 3 story hospital on current site, able to accommodate up to 318 new beds. New emergency and outpatients departments, renal support services, day oncology, dental services unit, birthing and delivery suites, special care nursery, ICU. | QLD health | $405 | 09-13 | In progress | ||
| Mackay Showgrounds Upgrade | New and improved facilites at showground | Mackay Show Assoc. | $10 | 2011 | Not started | ||
| Mackay Sports stadium | Sports stadium for Rugby League games. The stadium will hold 15,000 spectators | Woollam Constructions | $11 | 07-11 | In progress | ||
| Ooralea Racetrack Redevelopment | Redevelopment of Racecourse into a top-class racing and community venue | Mackay Turf Club | $18 | | Not started | ||
| COMMUNITY INF. TOTAL | | | $457 | | | ||
| CONSTRUCTION | |||||||
| Andergrove Urban Development Area | Up to 180 lots on site, quality affordable housing | Urban Land Development Authority | $4.2 | 11’-12’ | In Progress | ||
| Andergrove UDA – stages 2-3 | Development approval for 41 residential lots on Bedford road, Andergrove | ULDA | $4.8 | 2010 | Not started | ||
| Blacks beach Cove | Housing development in Blacks beach. 850 site, 350 developed so far | Private developer | $60 | 09’- current | In Progress | ||
| Breezes Retirement Resort | Residents community centre, over 50’s lifestyle village with 221 two and three bed villas. Stage 1 = 206 homes and 11 apartment | Becton Property Group | | 07-11 | In Progress | ||
| Bunnings Warehouse | Proposed hardware store for Holts Road, Richmond | Bunnings Warehouse | | 2010 | Not started | ||
| East Point | Integrated development including an international standard hotel, apartment complex, resort villas, retirement villas, retirement village, shopping village, residential lots and a cultural centre – 250 rooms | Eastpoint Mackay Pty Ltd | $150 | 12’-20’ | In Progress | ||
| Glenrowan residential estate | 340 lots, built in stages, stage 1 and 3A developed and sold with houses built. AV Jennings now doing balance of stages 2-9 | AV JENNINGS Mackay Pty Ltd | $34 | 07-current | In Progress | ||
| Inspire CBD | Office precinct, retail. 149 room hotel and 130 residential unit and townhouse development | Pointglen developments | $170 | | Not started | ||
| Leichardt on river | 11 story mixed use development comprising dual key, residential apartments and restaurants – 168 rooms total | Martinek Pty Ltd | $35 | | Not started | ||
| Nabilla meadows | 500 lot subdivision at Marian | Pointglen developments | $20 | 10’ | In Progress | ||
| NB services | 5 warehouses and offices for “service” industry use | Gros-Dubois | $2.5 | | Not started | ||
| Pacific Parks Estate | 9 stage development with parklands, open spaces, rec facilities, high and low density | Pacific property developers | | 07-10’ | In progress | ||
| Parklands Estate | Refurbishment and development of buildings to accommodate mixed residential, commercial and retail uses | Nebo Rd Pty Ltd | $102 | | Not started | ||
| Pioneer lakes | Stages 1-8 33 residential lots with further exoansion to include another 170 lots. Stage seven will include 173 retirement villas. Also industrial and childcare | Pioneer lakes pty ltd | | 09 | In progress | ||
| Plantation Palms | 2000 residential lot estate in the Northern beaches. 60% parkland. | Xcel properties | $1,500 | 07-20’ | In progress | ||
| Richmond Hills | 500 lot residential subdivision | Pointglen developments | $200 | | Not started | ||
| Settlers Rise | 100hectare masterplanned 12 stage community | Cougar Development | $120 | 2011- | In progress | ||
| Shoal Point Waters | Small tourism precinct with commercial facilites, high & low density residential developments. Over 1000 alotments | Pointglen developments | $600 | 01’-11 | In progress | ||
| The Beach | Four stage residential development | Pacific coast developments | $200 | 07’- | In Progress | ||
| The Pier | 2 residential towers, restaurants & Boardwalk. 54 apartments | | $87 | 07- | In Progress | ||
| The Waters @ Ooralea | 236ha housing estate including 250 retirement dwellings. 10,000sqm commercial and 2321 house and unit sites | Cougar developments | $80 | | In Progress | ||
| Town beach Dev. | Tourism/res. 266 units, 15 houses, retail | Pointglen dev. | $150 | | Not started | ||
| Universal Self Storage | Self storage facility | Pilot Group | $4 | | Not started | ||
| WaterFront Landing | 9 story residential complex. 41 units | JD Dodds | $35 | | Not started | ||
| TOTAL CONSTRUCT | | | $3,558.5 | | | ||
| MANUFACTURING/INDUSTRY | |||||||
| Evolution Paget Industrial Estate | 242,073 SQM industrial. 41 lots. High impact industry zoning | Mirvac & ICPS | $200 | 08’ - | In Progress | ||
| Harbour City Central | 32 Industrial sheds/office development | Res. Dev. Mackay | $20 | 08-11 | In Progress | ||
| Industroplex | Industrial Estate stages 5 and 6 | FKP Property | $40 | 11-12’ | Not started | ||
| South Mackay Industrial Estate | Major industrial estate | QLD dept infrastructure and planning | $7 | 08’- | In Progress | ||
| TOTAL MAN./IND. | | | $267 | | | ||
| PORTS (AIR & SEA) | |||||||
| Dalrymple Bay Coal Terminal 9X | Construction of another 2 berths, 2 rail recieveal routes and new stockyards | North QLD Bulk Ports Corporation | | | Not Started | ||
| Dalrymple Bay Coal Terminal 8X | Work on existing yards | NQBPC | $1,000 | 09-18’ | Not started | ||
| Dudgeon Point Coal Terminals | 3 new coal terminals to join Dalrymple bay and hay point. Expanded port will export between 250 – 300 mtpa | NQBPC | $8,000 | 2013 | Not started | ||
| Hay point coal terminal expansion | Port capacity to increase from 44mtpa to 55mtpa | BHP/Mitsubishi alliance | $2,340 | | In progress | ||
| Mackay marina expansion stage 4 | Stage 4 planned with approximately 50 more berths | Port Binnli | $8 | 2010- | Not started | ||
| Mackay Airport upgrade | Terminal and runway revamp/upgrade | Mackay Airport | $10 | 10-100’ | Completed | ||
| TOTAL PORTS | | | $11,358 | | | ||
| PROFFESIONAL SERVICES | |||||||
| Dentist Training facility | Dental training facility and refurbishment of a 32 unti comples for student accomodation. | James Cool University | $2.57 | | Not Started | ||
| Emmanual Catholic Primary School Expansion | Classrooms and school hall expansions | ECPC | $2.8 | 09-11 | In Progress | ||
| GP Super Clinic | Construction of GP super clinic | Aust. Govt. | $7 | | Not started | ||
| Mackay Christian College Campus Dev. | Development of a new primary school campus and a mutli purpose hall | Mackay Christian College | $15 | 09-11 | In Progress | ||
| Mackay GP superclinic | Construction of new GP super clinic with 12 rooms, pharmacy, chiropractor, dentist etc | Dr John Mcintosh | | 10-11 | In progress | ||
| Mater Hospital Clinical training facility | Construction and fitout of a new 2 story clinical training facility at the Mater Hospital | James Cook University | $2.6 | | Not started | ||
| SMART centre | Sustainable Mining Automation and Robotic Technologies Centre | CQ University | $42 | 2012 | Not Started | ||
| TAFE training centre | Engineering College for apprentices and adult learners | TAFE | $32.5 | 2012 | Not Started | ||
| TOTAL PROFFESIONAL | | $104.47 | | | |||
| RETAIL | |||||||
| Bunnings Warehouse | New bunnings warehouse approved | Wesfarmers | $30 | | Not started | ||
| Canelands Central Expansion | Expansion of existing major retail centre & MYER. From 38,000 SQM to 66,000 SQM. | Lend Lease | $220 | | In Progress | ||
| Dan Murphy Mt Pleasant | Expansion of Mt Pleasant Tavern to include Dan murphy’s store | Dan Murphy | $5 | | Not started | ||
| Homemaker centre | Bulky Goods Homemaker centre | Lancini group | $60 | | Not started | ||
| Marian Town centre | 3200sqm supermarket, 1500sqm specialty stores, 36 lot residential subdivision | Tipalea Partners | $38 | | Not started | ||
| Mt Pleasant shopping centre | Expansion to mount pleasan shopping centre | Colonial First State | $50 | | Not started | ||
| Northern beaches central expansion | Stage 2. Woolworths, McDonalds, 17 specialty stores, 3 commercial suites. Bilo will change to coles. | Stockwell Building and Development | $250 | | In Progress | ||
| Orchid valey commercial | Retail convenience centre in Marian | Equitrust | $20 | | Not Started | ||
| The Avenue | Mixed use development | Woollam | $10 | | In Progress | ||
| TOTAL RETAIL | | | $683 | | | ||
| ROADS | Mackay Regional Council & dept. main roads | | $407.3 | | | ||
| Tourism | | | | | | ||
| Aus south sea islander cultural centre | Diversified tourism attractions including visitor info centre | Mackay Tourism | $6.9 | | Not Started | ||
| Clarion Hotel extension | 50 rooms | Clarion hotel Mackay | | | Not started | ||
| Eungalla EDGE Project | Eco resort | Mackay Tourism | $13.2 | | Not started | ||
| Harrup Park country club | 70-100 room proposed accomodation | HPCC | $10 | | Not started | ||
| The Beacon | 12 story development with 23 x 3 bed apartments | Port Binnli | $30 | | Not started | ||
| TOTAL TOURISM | | | $60.1 | | | ||
| MINING – Incorporating Mackay, Isaac & Whitsunday Regional Councils | |||||||
| Anthony Molybdenum Open Cut mine | Isaac regional Council (IRC) | Zamia metals | $200 | 2015 | Not started | ||
| Broadmeadow Underground expansion | IRC | BMA | $850 | 2013 | Not Started | ||
| Byerwen Open Cut | IRC – 10mtpa coking coal | Qcoal | $1,500 | 2013 | Not started | ||
| Charmichael coal mine – Rail line | IRC – From Charmichle mine to Moranbah to join Goonyella rail system to Hay point. | Adani Mining | $6,900 | 11-14 | Not started | ||
| Charmichael Open Cut mine | IRC – up to 60M thermal coal | Adani Mining | $4,100 | 2014 | Not started | ||
| Caval ridge mine | IRC – Open cut coal mine (5.5mtpa) | BMA | $4,000 | 2014 | Not started | ||
| Codrilla Open Cut mine | IRC - 3.2mtpa PCI & thermal coal | Macarthur Coal | $250 | | Not started | ||
| Daunia Coal Project | IRC – new open cut coking coal and PCI. (4.5mtpa) | BMA | $1,600 | | Not started | ||
| Drake Mine | WRC - Open cut coal mine, 17km south Collinsville | Qcoal | $350 | | Not started | ||
| Eagle downs underground | IRC - New underground mine producing 4.6mtpa coking and PCI coal | Aquilla resources/Vale | $988 | | Not started | ||
| Dysart east open cut & underground mine | 4mtpa coking coal mine | Bengal coal Ltd | $450 | | Not started | ||
| Eaglefield downs underground – stage 1 | New underground mine producing 6.8mtpa | Peabody | $1,400 | | Not started | ||
| Ellensfield underground coal project | IRC - New underground mine for coking and thermal coal. 4.7mtpa | Vale Australia | $640 | | Not started | ||
| Foxleigh Plains | IRC - Expansion to 3.3mtpa | Anglo American | $620 | | Not started | ||
| Goonyella riverside expansion | IRC - Expansion project to 21mtpa | BMA | $1,000 | | Not started | ||
| Grosvener underground coal | IRC – Construction and operation of new longwall mines. 6.5mtpa coking coal | Anglo American | $1,300 | | Not started | ||
| Isaac Plains Coal | IRC – increase production from 1.9 mtpa to 2.8mtpa | Aquilla | $118 | | In Progress | ||
| Jax open cut mine | WRC - 1.8mt coking coal | Qcoal | | | Not started | ||
| Jellinbah east open cut | IRC – mine expansion/extension to 2mt | Jellingah group | $100 | | Not started | ||
| Lake Vermont | IRC – expansion of lake Vermont mine to 6mt capacity | Lake Vermont resources | $220 | | Not started | ||
| Lenton Open cut | IRC - New mine producing 1.5mtpa coking/thermal | New hope coal | $120 | | Not started | ||
| Middlemount Coal Project | IRC - New open cut mine. 3mtpa | Macarthur | $500 | | In progress | ||
| Millenium open cut expansion | IRC - Expansion of current mine | Peabody | $276 | | Not started | ||
| Moorvale underground expansion | IRC - 2mt coking and PCI | Macarthur | $180 | | Not started | ||
| Moranbah south project | IRC - New underground mine producing 3.5mtpa coking coal | Anglo American | $1,300 | Finish 2017 | Not started | ||
| Mt Carlton open cut | WRC - Copper-Gold-silver mine | Conquest mining | $127 | | Not started | ||
| Newlands Northern underground | IRC - 7.5mtpa thermal coal | NCA JV (Xstrata coal ltd 55%) | $140 | | In progress | ||
| Olive Downs Nth Open cut coal project | IRC - New open cut mine to produce 1mtpa | Macarthur coal | $20 | | In Progress | ||
| Peak downs open cut expansion | IRC - Expansion from 9mtpa to 11.5mtpa | BMA | $1,000 | | Not started | ||
| Saraji East open cut | IRC - New underground mine to produce 5mtpa | BMA | $1,000 | | Not started | ||
| Sarum open cut and underground | WRC - New project to produce 5mtpa | Xstrata | $700 | | Not started | ||
| Talwood | IRC - New mine to produce 2mt PCI & thermal | Aquilla resources | | | Not started | ||
| Twin hills gold-silver | IRC – redevelopment trial mining planned | Conquest | $6 | | Not started | ||
| Wilunga Open cut | IRC – pre-feasability underway | Macarthur | | | Not started | ||
| Winchester sth open cut | IRC – 4mtpa coking and thermal | Rio Tinto | | | Not started | ||
| TOTAL MINING | | | $30,855 | | | ||
| | | | | | | ||
| TOTAL INVESTMENT IN MACKAY REGIONAL COUNCIL | | | $17,118,37 | | | ||
References: REDC & Mackay Regional Council
