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Spotlight on…Gladstone

As the end of 2019 and indeed the decade is behind us, we look at how the second half of 2019 performed for the Gladstone property market and the positive indicators for 2020 and beyond.

LAND

A total of 25 vacant blocks of land were sold in the second half of 2019.

Up to 1,500 sqm

13 land re-sales of blocks ranging in size from 576 sqm to 1,116 sqm show sale prices ranging from $35,000 to $190,000. Suburbs include Boyne Island, Glen Eden, Kin Kora, O’Connell, South Gladstone, Tannum Sands and West Gladstone.

Eight developer land sales of blocks ranging in size from 313 sqm to 742 sqm show sale prices ranging from $56,000 to $110,000. These estates include:

  • Forest Springs, New Auckland
  • Hill Close, Clinton
  • Little Creek, Kirkwood
  • Stockwood Estate, O’Connell
  • Tannum Blue, Tannum Sands
1,500 sqm + Rural Residential blocks

Three re-sales and one developer sale of blocks ranging in size from 3,682 sqm to 62,580 sqm show sale prices ranging from $50,000 to $200,000. Suburbs include Burua, Calliope and O’Connell.

STRATA – UNIT/TOWNHOUSE/APARTMENTS

Gladstone is still the most affordable strata market in Queensland as mentioned by REIQ. The segment is showing glimpses of improvement on the past few years with periodic rental increases strengthening the market.

DWELLINGS

The $400k plus segment has shown increased sales volumes with overall confidence appearing to be strengthening particularly with well-maintained properties that are showing reduced days on market and in some instances receiving multiple offers. Although sales volumes are still down on the previous years, the price quality is considered a more important metric.

Star Performers

Tannum Sands, with a current median of $395,000 compared to $335,000 for the 2018 calendar year, finished the year strongly with strong demand in the $600k plus segment continuing.

Calliope also performed well, with a current median of $260,000 compared to $247,000 for the 2018 calendar year. Anecdotal evidence suggests the recently-opened Calliope State High School is the driving force behind the upswing with a reduction in mortgagee in possession activity and strong increases in rental noted.

DWELLING RE-SALES

First half data as illustrated in the Gladstone 2019 Half Time Review showed positive signs. This has continued into the second half with 11 of the 13 re-sales showing price growth from 1 July to 31 December 2019. Positive statistics and a true sign the market is slowly on the rise.

Here is a range of settled sales of dwellings that had sold within three years prior.

Address Purchase price (2019) Purchase price (prior) Latest % change *Comments
102 Barney Street, Barney Point $130,000 $150,000 (Aug 2017) -13.3 Nil
18 Harmony Drive, Clinton $161,000 $151,000 (June 2019) 6.6 Nil
23 Paterson Street, West Gladstone $184,000 $105,000 (Jan 2019) 75.2* Full internal renovation
3 Bellemere Court, Boyne Island $190,000 $197,500 (May 2018) -3.8 Nil
33 Beltana Drive, Boyne Island $225,000 $190,000 (Jan 2019) 18.4* Minor internal renovations
36 Mars Crescent, Telina $249,000 $180,000 (Sep 2016) 38.3* Minor internal renovations
7 Canal Street, Calliope $261,500 $226,000 (Sep 2018) 13.6 Nil
15 Mellefont Street, West Gladstone $262,500 $230,000 (Aug 2018) 14.1* Minor internal renovations
5 Palm Court, Clinton $287,000 $230,000 (Feb 2017) 24.8* Minor internal renovations
8 Sovereign Court, Clinton $307,500 $302,000 (March 2017 1.8 Nil
27 Bloomfield Street, Calliope $343,000 $339,000 (Feb 2019) 1.2 Nil
5 James Court, Telina $425,000 $415,000 (Jan 2017) 2.4 Nil
2 Sarah Court, New Auckland $615,000 $612,500 (Jan 2019) 0.4 Nil

Overall positive statistics and an indication the market is slowly on the rise. 84% of re-sales showed an increase on their prior purchase price.

RENTS

Rents are still rising! Bringing relief to long-term investors, if this trend continues, the likelihood of new investment in 2020 would not be surprising due to the more attractive yields that would be on offer.

The general residential rental market, for both units, single unit dwellings and townhouses, in Gladstone is shown in the below table.

Property Gladstone Gladstone Gladstone Gladstone
Median Rent Median Rent Median Rent Latest % Change
Price $ Price $ Price $
December December December December
  Quarter 17 Quarter 18 Quarter 19 Quarters 18-19
1 Bedroom Flat 125 130 157.50 21.1%
2 Bedroom Flat 140 170 180 5.9%
3 Bedroom Flat 185 215 235 9.3%
2 Bedroom House 160 187.50 190 1.3%
3 Bedroom House 182.50 220 240 9.1%
4 Bedroom House 240 270 300 11.1%
2 Bed Townhouse 130 150 190 26.7%
3 Bed Townhouse 190 215 240 11.6%

The foregoing figures show a strong increase in the Gladstone residential rental market over the past year, with the rental value of a benchmark four bedroom dwelling up approximately 11.1% and the three bedroom townhouse up approximately 11.6% over the same period. Official statistics released for the December quarter in 2019 indicate the vacancy rate for residential property has decreased to around 2.1%.

The overall strengthening of the rental market can be put down to several current factors impacting the market including:

  • Improved conditions in the local economy
  • Limited number of new dwelling approvals
  • Reduction of rental stock as properties sell predominately to owner-occupiers
  • Affordability in comparison to other Regional QLD rental markets

Years of rental decline caused by an oversupply of both dwellings and strata properties has appeared to reach somewhat of a turning point; with affordable prices, steady rental increases, a moderate vacancy rate, capital growth potential and a reasonable yield paving the way for some investors to consider Gladstone as an investment destination once again.

COMMERCIAL/ RETAIL/ INDUSTRIAL

There were three vacant possession sales of commercial/ industrial properties in the second half of 2019. They are:

13 South Trees Drive, South Trees
Classification: 3 – Industrial
Status: Settled
Site Area: 4051 sqm
Building: 296 sqm
Price: $180,000
Distance: 9.9 km
Living: 296 sqm
Sale date: 02/09/2019
Summary: This property is located in an established commercial area at South Trees, within 8km of the Gladstone CBD. The property comprises a detached, circa 1990’s industrial building with a total lettable area of 296 sqm on a site of 4,051 sqm.
43 Toolooa Street, South Gladstone
Classification
: 211.3 – Office and Dwelling (single occupancy)
Status: Settled
Site Area: 759 sqm
Building:
Price: $190,000
Distance: 9.4 km
Living: 121 sqm
Sale date: 31/07/2019
Summary: This property is located in an established commercial area at South Gladstone, within 1km of the Gladstone CBD. The property comprises a detached, circa 1970 commercial building with a total lettable area of 121sqm on a site of 759 sqm.
153 Auckland Street, Gladstone Central
Classification: 2- Commercial
Status: Settled
Site Area: 415 sqm
Building: 268 sqm
Price: $215,000
Distance: 9.2km
Living: 268 sqm
Sale date: 31/12/2019
Summary: This property is located in an established commercial area at Gladstone Central, within 1km of the Gladstone CBD. The property comprises a detached, circa 1980 retail shop with a total lettable area of 268 sqm on a site of 759 sqm.

These sales show a range of $608 psm to $1,570 psm of Lettable Area and $44 psm to $518 psm on a Site Area Improved basis, and a range of analysed yields of between 7.45% and 10.92%.

Therefore, limited information to report on in this segment overall. A handful of developments however are underway, including a new service station on the intersection of Hanson Road and Yarroon Street, and the ongoing stages of East Shores. Stage 1 earthworks of the Philip Street Communities and Families Precinct are well under way. A number of other potential developments have been mooted in the local media in recent months, including a bowling alley at the Central Lane Hotel and a cinema at the Yaralla Sports Club.

Opteon’s local expert

For further insights into the Gladstone property market, contact our local expert:

Josh Stanton
AAPI CPV Certified Practising Valuer

M 0448 666 333
P 1300 650 346

Josh commenced his career in Rockhampton as an Assistant Valuer with Opteon; in this time, he assisted Senior Valuers with a diverse range of valuation assignments including in the residential, commercial, industrial and retail sectors.

Josh has had experience across a diverse group of property markets throughout Central Queensland and is currently based in the Opteon Gladstone Office.

Formal qualifications

Associate of the Australian Property Institute
API Member
Certified Practicing Valuer
Bachelor of Property

Areas of expertise

Residential
Rural Residential
Family Law
Commercial
Industrial
Retail
Government Services
Local Consulting & Advisory