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Is a Property Boom Gladstone's Best Kept Secret?
March 08, 2010
Gladstone's property market is about to boom fueled by tightening market supply and imminent announcements on the Curtis LNG Project which will create a massive surge in local investment.
According to UDIA — Gladstone President and Citimark Residential Land Director, Geoff McWilliam, signs of a rapidly moving market are already evident with house prices rising only days after recent major LNG Project announcements.
"The market obviously reacts to certainty," said Geoff. "Following the QGC announcement in February this year, we sold 15 properties in two weeks at Emmadale Gardens and houses that were selling for $440k mid 2009 are reselling now for $495k."
Regarded as a significant local market indicator, Citimark Properties' 330 lot Emmadale Gardens land estate retained an impressive 50% of local market share in 2009. "Since January this year, we have experienced a 67% increase in enquiry from both informed speculators and local home owners trying to "beat the price rise" and take advantage of a recent lull in house prices before demand created by the forthcoming LNG Project eventuates," said Geoff.
"Based on this feedback, we expect to release more than 70 new lots at Emmadale Gardens this year to meet demand", he said.
After a difficult start to 2009, following the Global Financial Crisis, the Gladstone property market is showing signs of a strong recovery. The tightening of housing supply has been consistent since March 2009. House listings on realestate.com.au have steadily decreased since early 2009 (despite a slight upswing in September 2009). Since December there has been a 10.9% decrease in the number of listings, mostly in the $301k - $400k price bracket.
Additionally, REIQ Gladstone Chairman Mark Spearing has commented that dropping rental availability, averaging 4.3% at October last year, was expected to push rental yields upward.
Gladstone's huge pipeline of projects is expected to fuel strong growth over the coming decade with LNG production scheduled for 2014. Potential LNG projects totalling at least $40billion over the next five years could help create more than18,000 new jobs.
Drawn by this mining boom and other major projects, Gladstone's rate of population growth forecasted at 2.77% p.a. is significantly higher than the state average forecast of 1.8% p.a. This means there will be a requirement for the supply of over 400 homes per annum.
"With over $40 billion in major projects planned for Gladstone, it is great to know that it is still possible to purchase a brand new house and land package in Gladstone from only $430,000, with a potential rental income of $420-$450 per week," said Geoff McWilliam. "I can't see how prices will stay this low for very much longer."
One of Gladstone's leading housing developments, Emmadale Gardens, has shown positive results for 2009 with interest continuing as 2010 commences. Despite the difficult economic environment and various factors affecting the real estate industry, Emmadale Gardens sold 36% more land in 2009 than in 2008. This high rate of sale triggered the release of 60 new lots across two stages in late 2009.
The Emmadale Gardens Sales Office and Display Village is open Saturday to Wednesday at 1 Grasstree Crescent, Kirkwood.
All statistics and data have been taken from 'The Gladstone Property Report' produced by Emmadale Gardens Pty Ltd. For a copy of this report call 1800 776 658.
Media Contact
Elisa McMahon, Citimark Properties
Ph: 07 3002 6200 or
Email: elisam@citimark.com.au