Analyst warns property market ‘glutted’ in Gladstone
A QUEENSLAND property analyst has warned that Gladstone's property market has been "glutted", with 3500 new homes in just 18 months.
Zeal Group chief Michael Addison said rental growth had been hit hard by over-supply of housing development, as well cost overruns in the LNG sector, and the drop in world carbon trading credits forcing the mining industry to cut workers.
Mr Addison said he had 150 clients who owned property in Gladstone, who enjoyed high rental returns for two years.
But he warned future returns would "fluctuate with construction cycles for the next four to five years".
"I anticipate a roller coaster for investors over the next 10 years, caused by the strength and otherwise of the rental market," he said.
He also warned the owner-occupier sale market is "very subdued", and unlikely to grow in the next two years.
But he said investors entering the Gladstone property market for under $525,000 in good locations were making safe investments.