QLD Gladstone has hit bottom, absolute steals around - $205k 4/2/2 on 800sqm in town

I've been watching the Gladstone market. Now, I know it's been through a big boom and then a big bust, but geez... prices are unheard of at the moment.

A quality build 10 year old 4/2/2 on a 800sqm block just sold for $205k! It's renting out at $220pw. 6 years ago this would have sold for $520k. I'd say it's 'true' value would be around $300k, and it would cost at least $350k just to build something comparable.

Decent little 2 bedder villa units are $70k.

I think it's 'under swung' too low at the moment.

At what stage is this become a good area to buy? I think the area (long term) still has good prospects.


FMc.

(Disclaimer - I own property there).

 

Why would u buy in Gladstone for 205 and rent for 220 when you could buy in Brisbane and get a similar rental return (albeit with a higher start price)? What's going to drive up prices in Gladstone that will outstrip a major capital city?
How much demand is there for rentals?

 

Unsure, although I know vacancy rates have dropped down to 3.8% (down from a peak of 11%+). Something is going on in the area in the last 5-6 weeks. They still have 1,000 people moving in per week, although the astronomically highly paid trade jobs are not there anymore.

It's a resource / tourism / agriculture heavy area. They say the next phase of growth will come from the commercial sector (shopping centre expansions, etc).

Any energy project would see some growth, e.g. if a nationalist / pro-australian job type of politician got in power (Hanson?). We all laugh but she's rising in the polls.

 

I assume you're talking units in Brisbane?

$205k for this house is about $9k more than the councils land value, which had recently been reduced $50k.

 

Hi Finn

We looked at Gladstone back in early 2000’s but I saw massive jobs to build all the infrastructure and not many ongoing jobs to run things . Bought in rocky instead and one in Townsville . Glad we did . Rocky and Townsville have more diversified economies , though they all got hit to varying degrees .

Sqm free research confirms vacancies are much improved , it 3.8 is still high , though it appears to be dropping .

Stock on market is in a slow gradually decline which is also good

BUT

asking prices are still declining in a pronounced down trend . Now might be better than three years ago , but looks too early to call a bottom IMHO .

personally I wouldn’t be looking there until Brisbane’s boom has become generalised ( central / middle ring ) and is a fair way through its cycle .

As a comparison , we recently just bought in Hobart for 267 with a rent of 330 and Hobart is just moving into its boom phase . Living in Melbourne , I’d look there first . Hobart will double before Gladstone starts moving .

Cliff

 

So what? Itll cost billions to build a house in the middle of the ocean. That doesnt mean its worth anything. Replacement cost is useful only if people actually want to build there.

 

If I was a Gladstone local looking to buy my first home I'd think it was Xmas!

 

Personally I'd never buy in Gladstone unless I wanted to live there long term.

 

I finally got to raise my rent last month, first time in a bloody long time

 

How many people are leaving 1500? Where are these stats from?

Have they started the Stocklands upgrade? The people and disposable incomes aren't there as they were a few years ago. If you were johnny stockland would you upgrade the shopping centre after what's happened the last few years? ??

One thing gladstone kicks ass with is the family friendly parks and free events! I saw a propsal of the new park next to maccas at stocklands and it's awesome! Leaves city parks for dead! The locals have it pretty good

Also the people coming to town are doing so for the cheap rent not for jobs

 

Look at the sky writing! Is that a recent photo?

 

I think that was a gee up on a Facebook page

 

Is that "Vote No" skywriting for real or was that Photoshopped in, later on lol.