STANDOUT: Gladstone’s growth highlighted in property report
GLADSTONE was a standout performer in the housing market this quarter, the REIQ’s Quarterly Market Monitor revealed.
The port city recorded a quarter-on-quarter growth of 11.8 per cent in median sales price, making it one of the strongest performers in the state reaching $299,000 with 94 houses sold over the period.
The annual price also grew by 3.7 per cent, reaching $280,000.
Houses were also selling faster. According to the report Gladstone houses spent 29 days fewer on market than the previous year making it the largest decrease in the Queensland regions.
“Last year, the median days on market was 84, but that metric has this year fallen to 55,” the report stated.
The report noted although there was clear growth in the region in September 2014 the annual median house price was $400,000.
There has been growth in the unit market as well.
The median unit price in Gladstone increased 6.1 per cent over the year to $175,000.
“However, the Gladstone unit sector still remains a very small part of the overall sales market in the region,” the report states.
“That said, days on market have also fallen dramatically over the past year – down from 95 to 66 days.”
It’s also an investors market.
The residential vacancy rate is considered “tight” at just 1.8 per cent.
“The downward trend in vacancy rate has been apparent for a number of years now with it reducing every year from 6.4 per cent in June 2017,” the report states.
“This significant reduction in rental supply is pushing median weekly rents, with rents for three-bedroom houses, three-bedroom townhouses and two-bedroom units all up over the year ending September.”
The median weekly rent for three-bedroom houses and townhouses is now $240, and $180 for two-bedroom units.
According to report investors are starting to see gross rental yields improve, with the median house yield now at 4.2 per cent.
Raine and Horne real estate agent Steven James said the report reflected his predictions for the year.
“We’ve seen a lot more confidence from buyers that’s on the back of low interest rates,” Mr James said.
“Most suburbs have bottomed out this year … and the best time to buy is the bottom of the market.”
He said Gladstone was looking more attractive to buyers due to diverse workforce, new parklands and events.
He predicted next year would be the “rebound year” for the property market.
“We’ll see the market go up to five to seven per cent,” he said. He predicted very good growth in three to five years.