'Coming back': What's next for Gladstone's property market
AFTER years of volatility, Gladstone's property market is expected to experience steady growth in the next 12 months.
With the vacancy rate sitting between 2.5-3per cent and sales on the rise, property analyst Terry Ryder said the Port City was experiencing the signs of a recovering property market.
Founder of property website Hotspotting and regular columnist for Money Magazine and Property Observer, Mr Ryder told The Observer while it was a slow process, the region was on the cusp of recovery.
SQM research said in July 2019 the vacancy rate in the 4680 postcode was 2per cent, the lowest since October, 2012. It said there were 214 vacant rental properties.
In its June quarter report, Real Estate Institute Queensland said Gladstone's vacancy rate was at a "healthy" 3.1per cent.
In another positive sign, Mr Ryder said recent research found some suburbs in the Gladstone region had experienced increased median prices in the past 12 months.
He said other Central Queensland cities and towns including Mackay, Rockhampton and Emerald had also experienced positive changes to property markets.
"It's just another sign that Gladstone's property market is coming back after several really tough years," he said.
"During the boom there was an oversupply of new dwellings."
"It's taken time for that excess stock to be soaked up ... and a market really can't recover when its vacancies are at 4-5per cent."
The number of residences on the market has recently dropped too, however, there are still hundreds that have been listed for more than six months.
SQM research found in July there were 981 properties on the market.
Of those, 111 had been listed for less than 30 days, 78 for 30-60 days, 82 for 60-90 days, 170 for 90-180 days and 540 for more than 180 days.
SQM's weekly asking prices index showed the asking price for homes in the past 12 months had increased by 4.8per cent, but when comparing to prices three years ago, it had dropped by 2.5per cent.
It said the average prices for three-bedroom homes had increased by 7.9per cent in the past 12 months and two bedroom units by 4.7per cent.
Mr Ryder said having shovel-ready small to medium-sized construction projects would help further improve Gladstone's property market, too.
"Even without those extra construction projects, I think there's still going to be a steady price growth," he said.
"In the next 12 months there's going to be moderate to steady growth, nothing dramatic but that's a big improvement on the past six years."