However sales volumes have eased significantly due to the unaffordability of house and land over this period, with sales across the region down 27.3 % compared with the March 2011 half-year period and land sales down by 48.9 %.
PRDnationwide says there were 327 houses sold across the 12 suburbs that comprise the Gladstone City Area and 149 land transactions in the six months to March 2012.
Sales volumes also decreased in the unit market, which failed to sustain the exploding uplift in activity experienced during 2010-11, registering a total of 107 transactions in the March 2012 half-year period a decrease of 20.7% from the level of volumes recorded in the corresponding period in March 2011.
“The lack of affordable house and land is driving sales volumes back down, exacerbated by unprecedented rental growth which continues to inflate values accordingly,” says Matta.
Matta says the development of the Devine project repesents both good and bad news for the people of Gladstone City – depending on what side of the fence they sit.
“The good news is, that developments like this are likely to entice would-be investors and perhaps first-home buyers to snap up an opportunity they could not previously have afforded,” he says.
“The bad news is, for developers, investors or those who have recently paid a premium to live in the area, that rental vacancy may increase in the market, with rents and subsequent prices likely to correct as a result,” he says.
“As relenting as the fight is for the market to find equilibrium, the earmarked growth in the region’s economy and workforce is likely to ensure the fight continues for a long time to come.”
The PRDnationwide report attributes the revival of the Gladstone property market “solely to the booming resource industries in the Bowen and Surat basins”.
“Substantial projects such as the Curtis Island LNG facility have provided the catalyst for the recent flurry of investor interest, with many looking to capitalise on the opportunity for solid capital growth and attractive rental yields,” it says.
The report investigated three main areas – Agnes Water, Tannum Sands and Gladstone City – and found that demand for investment properties is rising in the Agnes Water Area.
PRDnationwide Agnes Water director Tim Lawry says the property market continues to benefit indirectly from the mining boom – with up to 80% of inquiry and purchases coming from the central Queensland region.
For more, download the free Property Observer eBook Residential Property Investment Amid Queensland’s Resources Boom. This article first appeared on Property Observer.
