Is the worst now over for Gladstone...?
- Thread starter DavidMc
- Start date
This isn't a whole lot different from Karratha and Port Hedland really, nothing is mined within close vicinity of either of these towns other than salt. I get what you are saying, but I don't think this can be cited as one of the primary differences to explain the inequalities in each coasts property markets.
After having worked in Karratha for several years in both construction and processing LNG, and now again doing both in the Gladstone area for a few years I can confidently say the major difference I see is money.
Everyone is loaded in Karratha....everyone! It is a town that ONLY exists because of the industry there and it was built by the companies that operate there. The companies pay for housing down to supervisor level in most instances and therefore have largely inflated the market due to needing to house their employees and there being limited land available to build on. As much as the people who live there love it (it has something about it that grows on you), if the industry shut up shop tomorrow the place would be a ghost town.
Gladstone on the other hand, not everyone is loaded, not everyone is riding on the back of the resource horse and those that aren't are vocal about it. The government released too much land too fast and now there are houses being built that no one will live in. The companies inflated the market here too but not so many of the companies house down to supervisor level, so the rental prices we limited by this also.
If all the industry shut up shop in Gladstone tomorrow the town would still survive (just), there are generations of people in Gladstone, it was established before all of this came along and will still be here when it dies down, albeit quieter.
As others have said before, the other main differences between the east and west coast industry towns is proximity. The difference in distances from capital cities, major towns, popular holiday destinations etc just doesn't compare.
Its been about 2 months since we financed or did an equity release for a property in Gladstone - how are people finding valuations?
Another drop to 5.4%. Keep on coming down please!
This is odd. It is the exact opposite to what I can see here. There is still the same number of vacancies as there has been all year yet the percentage keeps dropping? Can someone please shed some light on how these calculations are done?
Property prices continue to fall. observer article
I wouldn't be game enough to have my properties valued in Gladstone ATM the bank might tell me we owe them some money..
This is why a lender with system vals comes in handy. I did a couple of system vale and they came back much better than if it was a full val.
Hi All.
I am wondering if anyone has some insight into the Gladstone market.
I bought a 3x1 established house in 2010. Since then I've seen the value and rental return go up, then down (significantly)
Currently the house is vacant. Not much interest for rental. I'm thinking about selling as local real estate agents have told me they believe things will get worse in the next 6-12 months. I'm sure i'm not alone in this situation, it is a bitter pill to swallow. Life goes on though and it's decision time. drop the rent more and try to get a tenant or sell, cut my losses and move on. I just feel that if the market is at it's worse then I can handle the lower rents and wait it (years if required) for things to slowly pick up. But if in fact the worst is yet to come then holding on will be financial suicide!
Wonder if the two articles below have any credibility...
http://www.gladstoneobserver.com.au/news/home-market-has-levelled-out/2436762/
http://www.gladstoneobserver.com.au/news/rentals-creep-toward-normality/2444402/
I am wondering if anyone has some insight into the Gladstone market.
I bought a 3x1 established house in 2010. Since then I've seen the value and rental return go up, then down (significantly)
Currently the house is vacant. Not much interest for rental. I'm thinking about selling as local real estate agents have told me they believe things will get worse in the next 6-12 months. I'm sure i'm not alone in this situation, it is a bitter pill to swallow. Life goes on though and it's decision time. drop the rent more and try to get a tenant or sell, cut my losses and move on. I just feel that if the market is at it's worse then I can handle the lower rents and wait it (years if required) for things to slowly pick up. But if in fact the worst is yet to come then holding on will be financial suicide!
Wonder if the two articles below have any credibility...
http://www.gladstoneobserver.com.au/news/home-market-has-levelled-out/2436762/
http://www.gladstoneobserver.com.au/news/rentals-creep-toward-normality/2444402/
Had a Syd colleague buy Gladstone over Syd in 2011. Scratching my head all the way.
People talk abt ghost towns in China. Australia will have its fair share
People talk abt ghost towns in China. Australia will have its fair share
I have to say there are a lot of people who will get burned soon if not already by not doing their due dilligence before buying in Gladstone, but to suggest it will become a ghost town is a bit of a stretch.
Gladstone is a town that has been around some 150 years and has a wide variety of industries that existed well before this last boom, and will be around a long time yet with government population growth projections of a 50,000 person increase by 2031.
I'll freely admit there has been a lot of doom and gloom and some are still living in la la land (ie; Boulder Steel) but it is an industrial town with it's ups and downs and there's a good chance it will continue be for a long time to come.
I worked and lived in Gladstone from late 2010 to earlier this year.
Lets just say I went from 4 job offers a week to begging for work in that time..
Since earlier this year, the company I worked for have made 80% of the people redundant and have closed their Gladstone Branch and are running out of Brisbane.
I know this is not a direct correlation to the property market, however I would say it is a good indication that things arent on the mend anytime soon.
Another thing to consider is that during the boom, all of the LNG works had a peak workforce during "CONSTRUCTION" but there was always going to be a time where the construction workforce were replaced with operating workforce, in which case, the demand and numbers are much much much lower.. Talking Sub 10% of the peak construction workforce.
On the contrary, as many have stated in this thread and many others, Gladstone is a cycle town.. It will only take another Port Expansion or gas plant to pick things up again.
Boulder Steel wont be the savior, but maybe something else in time.
Lets just say I went from 4 job offers a week to begging for work in that time..
Since earlier this year, the company I worked for have made 80% of the people redundant and have closed their Gladstone Branch and are running out of Brisbane.
I know this is not a direct correlation to the property market, however I would say it is a good indication that things arent on the mend anytime soon.
Another thing to consider is that during the boom, all of the LNG works had a peak workforce during "CONSTRUCTION" but there was always going to be a time where the construction workforce were replaced with operating workforce, in which case, the demand and numbers are much much much lower.. Talking Sub 10% of the peak construction workforce.
On the contrary, as many have stated in this thread and many others, Gladstone is a cycle town.. It will only take another Port Expansion or gas plant to pick things up again.
Boulder Steel wont be the savior, but maybe something else in time.
Good point. Ghost houses I should say.
Definitely agree with this, I can't believe houses are still going up!
Would you mind me asking what company you were with Wishy? Was it construction related?
There's some pretty significant developments pushing ahead in Emerald too, despite the 20'something per cent vacancy rate and even more bad news in the past week about mining cutbacks. I think folks who are contributing to new supply know if they cut their losses now they're ruined, and so they're pushing ahead and hoping for a miracle out of desperation. Now that Rockhampton is feeling the contagion from job losses and over-building, all of CQ is now sharing in the downturn.
Similar threads
