Outside investors eye off Gladstone real estate
A KEY factor to the positive signs in the Gladstone housing market has come from capital city investors looking for long term returns on new investment properties.
The Gladstone is counter cyclic to the capital cities and the high price of property in metropolitan areas was forcing residents there to invest elsewhere.
With confidence growing in the Gladstone region southern investors are looking for a bargain price.
Ray White Gladstone Director Andrew Allen said the Gladstone market was seeing a lot of investment activity from Brisbane, Sydney and Melbourne investors.
"What's driving this interest is for a $190,000 investment in Gladstone is about one-third of what you would pay for in a capital city," Mr Allen said.
"Gladstone is a small regional city affected by world economics with its regional industry.
"A year ago we would have had less than five per cent of outside investors in the Gladstone housing market showing interest and now it's getting close to 40 per cent."
The tightening of the residential vacancy rate has placed upward pressure on rental prices.
The volume of housing sales is increasing and with little supply being added to the city's housing stocks since 2015, home values are showing signs of positive growth.
Ray White Special Projects Queensland Executive Director said this is an ideal opportunity for a genuine counter cyclic property investment in Gladstone.
"The Gladstone market suffered several years of negative growth following the completion of construction of the $90 billion LNG Curtis Island gas plants but recent data demonstrates demand for housing is increasing," Mr Allen said.
"Ironically at a time when many of Australia's capital city markets stall, the infrastructure city of Gladstone is likely to witness a long-awaited recovery of its property sector."