Report shows Gladstone property prices are still in decline
GLADSTONE has been named as one of 10 regions in Australia where the property market is still declining, according to valuer Herron Todd White's latest monthly report.
The Property Observer website reports the 10 regions are across the ACT, New South Wales, Victoria and the Northern Territory, but are mostly in Tasmania and Queensland.
"The Gladstone residential market continues to ease with declining prices still evident, which have been decreasing since November 2011," the report says.
"This has been seen across all residential market sectors including vacant land, residential units and dwellings.
"From October 2010 to November 2011, Gladstone and surrounding areas had experienced strong growth in the residential property sector.
"This was due to strong investor sentiment after the announcement of the EIS approvals for three LNG projects in Gladstone."
The construction workforce required for completion of the projects is at peak levels, meaning the the demand for accommodation has eased significantly, with supply outweighing demand in the residential property sector.
This is putting downward pressure on prices while supply is continuing to increase, the website reported.
Local buyers are coming back into the market as prices are decreasing and becoming more affordable.
"The buyers are first home owners as well as home owners upgrading. Interstate investors are still active, but interest has slowed significantly."
Other areas in decline include Canberra/Queanbeyan, Emerald, Wagga Wagga, Shepparton and the Gold Coast.