RENTAL RETURN: Gladstone's healthy return to market
DATA from the Real Estate Institute of Queensland shows renters moving to Gladstone are often becoming buyers within six to 12 months.
Ray White Gladstone director John Fieldus said this was very good news for Gladstone's notorious boom and bust housing market, with a rise in rents set to be followed by a rise in house prices.
"There is a connection between the two, a flow-on effect," he said.
"Roughly 40 per cent of Gladstone is currently rental and it's a very influential part of the market.
"It's been deflated and it's had a really bad run for over a decade.
"Only two years ago the vacancy rate was above 11 per cent. We've changed so much since then."
Mr Fieldus said among the 1000 properties Ray White Gladstone manages, only 2.5 per cent were available to rent.
"We're very blessed, nothing is guaranteed in Gladstone but it is an incredible improvement," he said.
"It's a boom on the back of how cheap the rent has been."
REIQ CEO Antonia Mercorella said Gladstone had stared down some of the most challenging market conditions in the state.
The data revealed Gladstone lost 8.5 per cent over 12 months to the March quarter, to a median house price of $280,000.
The unit market fell 36 per cent over the past 12 months to an annual median unit price of $167,500.
"This market is more than 38 per cent below where it was five years ago," Ms Mercorella said.
Mr Fieldus said there was more bang for your buck in Gladstone than ever before.
"People are spending money here, it is becoming attractive again," he said.
"We are also seeing a different type of resident moving here. Not someone moving for a job but for a lifestyle. Gravitating away from the city."