Gladstone’s property prices one tick from rock bottom
IT APPEARS time has stopped in Gladstone.
Property valuation company Herron Todd White released their national property clock this week which put Gladstone one tick away from hitting the bottom of the market.
Despite a general feeling among real estate agents who say the market has hit rock bottom, according to Herron Todd White's findings there is likely to be more pain on the way.
The report singled out Calliope saying that development continued well past the peak of the market which resulted in an oversupply of houses in the area.
But the owner of Elders Gladstone, Colin Burke, said what was happening in Calliope was indicative of the Gladstone market as a whole.
"We think we're at the bottom of the market but you never know until the market starts to turn," Mr Burke said.
"What we've been seeing is that if houses are priced right there are buyers at the entry level of the market.
"It's a good time for people who are renting to buy," Mr Burke said.
The average time on the market for a house in Gladstone has come down slightly but still sits at a reasonably lengthy 99 days and with transactions down 18% vendors have been encouraged to cut asking prices.
Gladstone's property market has been slowly grinding to a halt over the past year and with little hope of any major projects starting construction, job cuts at Queensland Alumina Limited and NRG Gladstone Power Station and a rise in mortgage delinquencies, confidence in the market can be expected to remain low.
"The industrial market in Gladstone remains volatile and there is significant uncertainty regarding the short-term direction of the market throughout 2016," Herron Todd White's report read.
"Local agents are generally reporting very little enquiry for industrial property for either lease or sale."
The median price for houses in the six months ended December 31 last year reached $359,500 which was up 3.2% on the previous quarter but down by 4.5% overall on 2014 prices.
"Most of the oversupply is of modern housing in new estates and there are also significant vacant land stocks available," the report said.
Although Mr Burke did not think Gladstone had to wait for another major project to come to town for the market to turn, he was encouraged by the rental market in Gladstone and the number of residents eying opportunities to pick up bargains.