Is the worst now over for Gladstone...?

[Jenko]

Gladstone Rental demand
It is from the Observer though so I would start doing backflips, they have a history of contradicting them selves.. One day it's boom the next day gloom.. Probably true with most papers..

 

[tpepper]

http://www.sqmresearch.com.au/graph_vacancy.php?mode=p&postcode=4680&t=1

vacancy rate is improving,

we have a block of land there hopefully it continues this way so when we get around to building when yields have improved!

 

[Bhp19]

Would anyone take the punt and jump into this market now? If so what are you looking to buy?

Just wondering if the old adage rings true to buy when everyone else is scared?

 

[Jenko]

Land... I'm sorry to say but I think you might be in for a bit of a wait.

 

[Jenko]

Would anyone take the punt and jump into this market now? If so what are you looking to buy?

Just wondering if the old adage rings true to buy when everyone else is scared?

There are thousands of jobs about to finish-up on the island.. So would steer clear of Gladstone for awhile..

 

[norwoodman]

While things are still bad in Gladstone at the moment, I don't think it's the key regional QLD market that is doing it the hardest at the moment (or any more) - things seem to be worse now in Townsville and Mackay than in Gladstone on the rental front and only a bit better in Bundaberg and Rockhampton.

 

[Jenko]

What's happened in Townsville?

 

[norwoodman]

What's happened in Townsville?

Townsville has been affected by a combination of oversupply in the western suburbs of the city, lower population growth and has a rising vacancy rate (which more or less the same as Gladstone's now).

 

[Jenko]

Gee it looks like the most of Queensland suffering atm.

 

[tpepper]

I know it makes me wonder what the future of toowomba and Ipswich will be like if they will continue to develop and release land

Logan does not have as much free land but still I think rental yields have potential to drop there.

 

[Jenko]

I know it makes me wonder what the future of toowomba and Ipswich will be like if they will continue to develop and release land

Logan does not have as much free land but still I think yeilds have potential to drop there.

Yes, If they keep building its got to end in tears (one of my most expensive lessons to date) .. My last purchase was in Scarborough and the best thing about that place is there is no more available land so no oversupply.

 

[Bhp19]

What is it with Queensland government (local and state) approving so many dwellings being built? It completely dumbfounds me that local council in Gladstone could be so short sighted and not acknowledge that the construction work on these projects wasn't going to go on forever, who did they think was going to live in all of the newly built houses and units once all the plants are in operational phase?

I guess none of the people working in the planning department own investment properties.

(Disclaimer: I own no IP's in or around Gladstone.)

 

[Ausprop]

the best thing about that place is there is no more available land so no oversupply.

said it before and say it again... nothing else matters as much as the imbalance between supply and demand

 

[Jenko]

said it before and say it again... nothing else matters as much as the imbalance between supply and demand

Yes but to make sure there is always an unbalanced you have pick a location there is a shortage of land so the supply can't overtake the demand. Another thing of course is that people actually want or have to live there.

 

[DavidMc]

# Gladstone update Dec 2014 #

I thought I'd check in on the Gladstone market. Positive news, looks like there has been a slight upturn.

Stock on market same as Dec 2011 level (just prior to the crash).
Rents/Yields going up.
Vacancy steady at 5.2%.

Still early days though. Keen to see what next round of data shows.

 

[belvoir]

What is it with Queensland government (local and state) approving so many dwellings being built? It completely dumbfounds me that local council in Gladstone could be so short sighted and not acknowledge that the construction work on these projects wasn't going to go on forever, who did they think was going to live in all of the newly built houses and units once all the plants are in operational phase?

I guess none of the people working in the planning department own investment properties.

(Disclaimer: I own no IP's in or around Gladstone.)

I am lost for words and am not sure if you are trolling or just being nimby/boomer.

The planning department/government is doing exactly what it should do, take advantage of our competitive advantage of an abundance of land. The cheaper the land the cheaper the input costs because businesses can then divert money that would have gone to rent to the business.

It also decreases demand on wages as employees don't have to spend so much of their disposable income on providing a roof over their head and can spend it consumption items/savings or investments.

If only Sydney's planning team would allow mass amount of building on the fringes to help with the demand/supply imbalance.

 

[Bhp19]

Belvoir, there is an abundance of properties in Gladstone sitting vacant, brand new properties driving down the price of other properties in the area.

If you are a property investor with properties in Gladstone this is bad.

 

[belvoir]

Belvoir, there is an abundance of properties in Gladstone sitting vacant, brand new properties driving down the price of other properties in the area.

If you are a property investor with properties in Gladstone this is bad.

Buying property in Gladstone is not an investment but a speculative bet. It is not the local or state governments job to restrict land supply to help save investors by creating an artificial shortage. It is the height of rent seeking and is a disgraceful act to cheer on the restriction of housing supply.

 

[Bhp19]

If you're suggesting anyone who bought property in Gladstone didn't make money from it ie; ROI, then I think you will find you are mistaken.
Just because the masses followed blindly doesn't mean that it wasn't a good place to invest at a time.

My point I was making is that the approval of so many dwellings has done damage to the market there, yes the values were over inflated for a while but the abundance of vacant brand new properties in the area now will eliminate any prospect of capital gains for the forseeable future.

Further to this I am not cheering on a restriction of housing supply, but as investors it's not in our interests for there to be an oversupply of housing in any market.

Do you invest in property to make money or to provide a roof over someone's head?