Gladstone, Central Queensland
When will Gladstone recover?
It’s the question Hotspotting is asked more than any other.
For several years up to 2013, Gladstone was the darling of investors, as its market rose on the back of industrial projects costing around $60 billion. Then it all went pear-shaped and investors were left with properties worth less than they paid.
Gladstone’s fortunes are improving, with vacancies now almost back to the benchmark level of 3.0% and several large projects coming up to create jobs and demand for real estate.
Unlike the recent mega projects, which were so big they created massive distortions in the economy and the property market, the various projects now in the pipeline are smaller and spread across a diverse range of industries.
This should provide a variety of job opportunities that don’t require employees to live in workers’ camps – one of the causes of the demise of the Gladstone market in the past four years.
The recent positive signs are small, but real. In the last six months, there have been minor increases in house sales numbers and rents, and a reduction in the number of days on the market in some locations.
The biggest single factor pointing to improved conditions is the marked reduction in the vacancy rate, down from 12% at its worst to below 4% in April 2018.
Buyers are advised, however, to be cautious. Gladstone is a volatile property market, because of the local economy’s strong links to the resources sector. The history of this market is one of steep peaks and deep troughs, a trend which is unlikely to change.
This report covers the suburbs of Gladstone, Boyne Island, Clinton, Kin Kora, New Auckland, Tannum Sands and West Gladstone.