Rental prices in Gladstone have dropped by $50 to $200 a week.
Rental prices in Gladstone have dropped by $50 to $200 a week. Tammy Lewis

Gladstone rental prices drop but remain above average

SOME Gladstone rental properties are dropping by as much as $200 per week as the local market eases, but prices are still above average.

Senior property manager Nikky Nation, of Elders Real Estate in Gladstone, likened Gladstone's market to a rollercoaster.

"Gladstone is known for this. We always have very significant swings in the rental market," she said.

Tenants are re-signing contracts for less rent as resource companies hand back their collection of rentals.

"Major companies had LNG projects and they brought in hundreds of workers they needed to accommodate, but those projects are now completed," Ms Nation said.

"Because of this we are now seeing rents decreasing and we now have a vacancy rate in Gladstone.

"Most of the vacancies are apartments. A lot of houses have dropped in price but they're being tenanted rather quickly."

Average income earners will still feel the pinch though as rents are still above-average.

"They're still not down to where they were three years ago, but yes some have had a good $50 off weekly. Some apartments have seen $200 a week decreases," Ms Nation said.

With house prices, LJ Hooker Gladstone's property specialist Steven James said the market had dropped about 10%.

"What we're really waiting for is a population change," he said.

"The first part of this year we've seen more retrenchments and not as much work.

"We should see this pick up as this year goes by, especially towards the middle of the year."

Some bargains can be snapped up with houses dropping thousands of dollars.

"Across the upper segment ($500,000-$650,000) there's been about a $50,000 drop since June/July last year to where we are now," Mr James said.