NO not accurate a few weeks ago... Gladstone hasn't gone backwards in the last month!
Very miss leading information that developers are still putting out!
Gladstone QLD - How is it Going????
- Thread starter charlieandkath
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NO not accurate a few weeks ago... Gladstone hasn't gone backwards in the last month!
Very miss leading information that developers are still putting out!
Queensland towns ratepayers, especially Gladstone, seem to have been ripped off with the cap on how much local council can charge developers to cover infrastructure costs. It makes the initial purchase price cheaper but long term higher rates only wear down capital gains so perhaps false economy. Mackay seems to have tried to charge only absent landlords with extra rates but is challenged in court. One argument I cannot seem to find is whether Federal Government should contribute, they facilitate migration numbers so local councils are left with no choice but to fall into debt when there is a "boom" and influx of workers. The system seems designed for sustainable growth, which never happens in regional towns.
I did read the state government is reviewing how councils can recover cost to cover infrastructure costs. Perhaps we need to make a noise and ensure that the costs of the boom are not unfairly charged upon local ratepayers. Certainly appears to be an uneven playing field to me. The benefits leave town but the expenses do not.
http://www.gladstoneobserver.com.au/news/decade-of-pain-for-ratepayers-flagged/2146088/
I did read the state government is reviewing how councils can recover cost to cover infrastructure costs. Perhaps we need to make a noise and ensure that the costs of the boom are not unfairly charged upon local ratepayers. Certainly appears to be an uneven playing field to me. The benefits leave town but the expenses do not.
http://www.gladstoneobserver.com.au/news/decade-of-pain-for-ratepayers-flagged/2146088/
Right on!!
By capping the charge to cover infrastructure the government is manipulating sale price of homes (which never works long run) and that cost falls to ratepayers who should not cop it. If the federal government respond to business demands for more migrants that creates this demand then they should pay. If the full cost was passed on to developers then housing would not be so affordable to start with creating capacity restraints for business and then the whole nation suffers. Sorry but that should not be a rate payer problem.
In Brisbane today looking around and meet an agent who said he was starting to sell new development (house and land packages) that are currently being discounted by around $60k in Gladstone due to market conditions. Going to be interesting to see if developers have to start dropping prices further.
So I moved to Gladstone in Jan 2013 and work for a company where people work up here for 12 months on a contract before moving to a different site. To give an idea of the drop in rental prices due to the oversupply of houses I can give these facts:
Weekly rates:
2012: Two houses rented (3 and 4 bdrm) at $750 and $850 respectively by my colleagues
2013: I'm renting a house at $620 (4 bdrm, 2 bthrm, 2 garage, 2 years old)
2014: This rental I am vacating is listed to rent at $500 with no interest so far
There are houses here for rent: 3 bedrooms, pool and double garage for $450.
Working within the engineering industry, I'd call it "risky" at best to invest in Gladstone. There are a lot of vacant houses, when I walk through the streets in the cool of the evening.
I'm headed back to Melbourne next month, but the market seems a bit hot there at the moment, especially trying to break into the market in the outer east.
Weekly rates:
2012: Two houses rented (3 and 4 bdrm) at $750 and $850 respectively by my colleagues
2013: I'm renting a house at $620 (4 bdrm, 2 bthrm, 2 garage, 2 years old)
2014: This rental I am vacating is listed to rent at $500 with no interest so far
There are houses here for rent: 3 bedrooms, pool and double garage for $450.
Working within the engineering industry, I'd call it "risky" at best to invest in Gladstone. There are a lot of vacant houses, when I walk through the streets in the cool of the evening.
I'm headed back to Melbourne next month, but the market seems a bit hot there at the moment, especially trying to break into the market in the outer east.
With the current over supply and 10%+ vacancy I have no idea why anyone would build!
Where do I click 'like'?
From Herron.Todd.White's first month in review for 2014:
Gladstone
There has been much local and national press regarding the Gladstone economy and property market of late. 2013 was a tumultuous year for the Gladstone property market. We saw sharp declines in values on the back of an ever increasing supply, decreasing demand and vacancy rates which were trending upwards.
The vacancy rate for the postcode of 4680 as at December 2013 was 11.1% (according to SQM Research) which shows a 7.6% increase since the same time last year. Despite this increasing rate, there are still extensive townhouse and unit developments under construction with most of the product having been purchased off the plan 12 to 18 months ago.
Construction of new homes in modern estates has cooled over the last several months however new product is still being project marketed to investors. As these developments are completed, we expect the vacancy rate to rise further. How high they go is anyone?s guess.
Capital value levels have declined across all property types in the Gladstone region, anywhere between 10% and 30% and many are now at value levels lower than before the LNG plants were approved.
We expect the market to come under further downward pressure throughout 2014 before it stabilises and any capital growth can be expected. As with capital values, rental values have also faced downward pressure over the course of 2013 and we expect further declines in 2014 in line with the rising vacancy rate.
Construction of the three LNG plants on Curtis Island and demand for accommodation to house workers has been the backbone of the Gladstone property market for the past three years. As completion of the projects approaches, this is also what has triggered a downturn in the market and reduced confidence in the local economy.
The current workforce of approximately 11,000 will start to decline (perhaps somewhat rapidly) around the middle of 2014. The exact impact of this is largely unknown as approximately half are fly-in-fly-out employees. Talk around town is the question of future employment for the approximately 5,000 locals currently working on the Island.
2014 will be an interesting year for the Gladstone property market. With so many unknowns yet to impact the market perhaps predictions are best left to crystal balls!
Gladstone
There has been much local and national press regarding the Gladstone economy and property market of late. 2013 was a tumultuous year for the Gladstone property market. We saw sharp declines in values on the back of an ever increasing supply, decreasing demand and vacancy rates which were trending upwards.
The vacancy rate for the postcode of 4680 as at December 2013 was 11.1% (according to SQM Research) which shows a 7.6% increase since the same time last year. Despite this increasing rate, there are still extensive townhouse and unit developments under construction with most of the product having been purchased off the plan 12 to 18 months ago.
Construction of new homes in modern estates has cooled over the last several months however new product is still being project marketed to investors. As these developments are completed, we expect the vacancy rate to rise further. How high they go is anyone?s guess.
Capital value levels have declined across all property types in the Gladstone region, anywhere between 10% and 30% and many are now at value levels lower than before the LNG plants were approved.
We expect the market to come under further downward pressure throughout 2014 before it stabilises and any capital growth can be expected. As with capital values, rental values have also faced downward pressure over the course of 2013 and we expect further declines in 2014 in line with the rising vacancy rate.
Construction of the three LNG plants on Curtis Island and demand for accommodation to house workers has been the backbone of the Gladstone property market for the past three years. As completion of the projects approaches, this is also what has triggered a downturn in the market and reduced confidence in the local economy.
The current workforce of approximately 11,000 will start to decline (perhaps somewhat rapidly) around the middle of 2014. The exact impact of this is largely unknown as approximately half are fly-in-fly-out employees. Talk around town is the question of future employment for the approximately 5,000 locals currently working on the Island.
2014 will be an interesting year for the Gladstone property market. With so many unknowns yet to impact the market perhaps predictions are best left to crystal balls!
So who wants to take a punt at how long it takes Gladstone to get around to recovery mode?
Given where things are at the moment, I'd guess another 2-3 years, assuming nothing extraordinary happens between now and then. And even when it does, there's already a lot of empty land left over from the boom that has just passed, so there's not exactly any shortage of land.
Given where things are at the moment, I'd guess another 2-3 years, assuming nothing extraordinary happens between now and then. And even when it does, there's already a lot of empty land left over from the boom that has just passed, so there's not exactly any shortage of land.
It will be interesting when the LNG construction winds up. I know there are a lot of people that live in camps however there is still a huge amount of people that resides in the Gladstone suburbs. At Boyne island there would be 50 plus cars that are parked up at the bus pick up points. There will be a heap more houses on the market when those people are out of work.
10 - 15 years of stagnation and periods of small growth in between would be my guess, with *maybe* some short lived rallies in prices in between. I'm a pessimist about China, and Gas, and heavy industry's prospects in the short-medium term though, and the housing supply overhang looks a little scary.
I'd be very happy to be wrong on that prediction though, I have a personal interest in the economic prospects of Cental Qld and quite like the place.
Jenko, are you saying the crash had already started more than a few weeks ago? I think it has been slowly declining and my (facetious) remark was reference to that. But the recent announcements really underscore the decline in rents. Hence I am surprised by the ad you shared 17 January post.
Yeah the decline would of started a year ago. Still more to come, hang on!
The tone of this thread over the last 15 pages or so reminds me of the quote by Buffett...
"Be greedy when others are fearful and fearful when others are greedy"
Not saying it is necessarily a good time to buy right now as that would depend on the individual position and goals of the investor. But by the time anyone here thinks Gladstone is a good buy it will be well and truly too late.
"Be greedy when others are fearful and fearful when others are greedy"
Not saying it is necessarily a good time to buy right now as that would depend on the individual position and goals of the investor. But by the time anyone here thinks Gladstone is a good buy it will be well and truly too late.
I'm far from an expert, I admit but I'll chuck my hat in the ring anyway....
I'm guessing around 1630-1700hrs.
So half past stuffed?
