Why investors are flocking to Moranbah
A REAL estate agent is looking for stock after a sudden spike in demand for property in Moranbah, Dysart and Middlemount.
Raine and Horne Moranbah principal Des Besanko said there had been 'a lot of interest' over the past six months,
"In the last two months there has been a lot of interest from investors. We've had one Sydney investor looking to buy a bit in the area," he said.
"There are still a receivers' properties coming into the market. But there is a lot of evidence now (on the state of the market) and banks and valuers are putting them at a fair value."
Mr Besanko said when a property was auctioned it sold, so most properties were on the books for only about a month.
Moranbah property was attracting buyers from two different market sectors, he said. People who lived in Moranbah but were not in the market could see value in it, with the bottom of the cycle reached, and the better news coming out of the coalfields had brought in investors.
"There are still some investors coming to the market who are looking for an increase in housing prices," he said.
The agency currently had a problem with supply, as people who held on during the downturn could also see the bottom of the cycle and were holding onto properties longer.
Such is the demand for property that when a house comes onto the market at the right price there are multiple offers.
First National Sarina principal Russell Pollock said the agency had received multiple offers for hinterland properties, from a mix of owner/occupiers and investors.
"We have had investors jump onto the cheap Nebo properties," he said.
"I think people are realising the opportunities are running out. We have had multiple offers on properties."
Mr Pollock said there also was interest in Mackay's market, but it had been a little slower (that Moranbah).
"But Mackay hasn't seen the property values fall like in Moranbah," he said.
According to RP Data, there were 51 sales in Moranbah in 2016, the highest number in four years. In 2012 there were 160 sales.
Despite an increase in sales, the average house price in Moranbah fell from $200,000 in January 2016 to $160,000 in December.
The prices are still well below the highs experienced during the mining boom five years ago.