It has become increasingly evident since June that the Gladstone property market recovery is in full swing. High numbers of sales continue to occur with buyer confidence at it’s highest level since 2013. We are yet to see wholesale price movement across the Gladstone region, however new data this quarter indicates a median price rise in a few suburbs – a very encouraging sign.
Rental rates continue to surge upward with the majority of lease renewals witnessing a 10% – 20% increase with modern 4 bedroom homes leading the market increases. This is encouraging tenants to buy – a trend we believe will rise over the next 12 months.
Nevertheless, household debt burdens remain concerning with mortgage stress still a real issue for owner occupiers and investors alike. The local economy has stabilised this year, primarily as a result of decreasing unemployment, lower rates of under-employment and small business confidence.
The big talking point locally at the time of this release is the announcement of a $1B coal gasification project proposed by Australia Future Energy. The project, which creates domestic gas and industrial ammonia from coal would require a workforce of 800 – 1000 people during construction, with 200 – 300 full time roles for 30 – 40 years.
History tells us that September, October and November are the best property trading months of the year. With less than 3 months to Christmas, we expect a wave of new home buyers and tenants seeking to be into a new home before the festive season.