Gladstone in 2012

[rchad]

I have noticed that the new builds in Gladstone targeted to the mining execs/families cost a premium when for over $100K less there are decent homes on the market that would also appeal to this target group. I am aware that you have reduced depreciation for older property, however, this cannot be a driving rationale for paying in excess of $100K for a property??

What are your thoughts on the present Gladstone market? I have read that China's demand for resources is pulling back although the experts argue that even given this the property market will remain tight with very high yields.

In closing, do you prefer new builds in a market such as Gladstone or existing stock at a much more affordable price range? What are your thoughts on the Alto townhouse development in Gladstone at Glen Eden - they are selling townhouses for $475 to $495K targeted to mining professionals/families yet I noted there are new build homes in the low 400K range in competition

I would very much value your thoughts

 

[norwoodman]

I have noticed that the new builds in Gladstone targeted to the mining execs/families cost a premium when for over $100K less there are decent homes on the market that would also appeal to this target group. I am aware that you have reduced depreciation for older property, however, this cannot be a driving rationale for paying in excess of $100K for a property??

What are your thoughts on the present Gladstone market? I have read that China's demand for resources is pulling back although the experts argue that even given this the property market will remain tight with very high yields.

In closing, do you prefer new builds in a market such as Gladstone or existing stock at a much more affordable price range? What are your thoughts on the Alto townhouse development in Gladstone at Glen Eden - they are selling townhouses for $475 to $495K targeted to mining professionals/families yet I noted there are new build homes in the low 400K range in competition

I would very much value your thoughts

A lot of people seem to treat the whole of Gladstone as one market, but there is variability in performance between suburbs and areas. The asking price for some of the new homes in Glen Eden is a real premium (and there is a bit of repetition as well), considering there are more sought after homes in newer and existing areas such as Clinton and New Auckland often going for similar prices, and even the new estates around Kirkwood. You could get some of the less than 5 year old 3-4 bedroom homes in the Kaleetha Park estate of New Auckland (where I currently live) for a similar price to what is being asked for in Glen Eden.

There's a lot of good quality existing stock that is a few years old, and they make up a whole mix of newer homes in Clinton and New Auckland to the older Queenslanders in West Gladstone and South Gladstone. Having said that, the newer homes seem to get picked up the fastest in the rental market although even the older homes get picked off quickly as well.

If you read the Weekend Australian from a few weekends ago, the Gladstone suburbs with the fastest growing medians are New Auckland, Clinton, West Gladstone and also down in the Boyne Island area (it's more like a satellite town now). Having said that, pretty much the entire Gladstone urban area + Clinton + Boyne Island-Tannum Sands is doing very well.

The other reason I think the western side of Gladstone will do better than the eastern side is the amount of land still available. Clinton and New Auckland are fast filling up and will soon run out of land to develop in those respective suburbs (Vantage and HillClose are filling the remaining gaps you can see on Google Maps) while Toolooa and Glen Eden still have heaps of land available for development.

My advice... stay west of Glenlyon Road. Or north of Derby Street (there's better quality homes going for similar prices outside Toolooa and Glen Eden).