Rockhampton, QLD Which Suburb

Terry Ryder was pushing the merits of Emerald last year, around about the time the market peaked. Since then I'm a bit wary of his predictions/recommendations.

If there's some good gains coming in Rocky, I can't see what will be driving them. Vacancy rates are rising and you can get new/near new houses for pretty affordable rents IMO and there's heaps of new supply coming online. The pending de-amalgamation, high council debt levels, and a massive hike in rates doesn't do much for confidence either. Our place in North Rocky is up for lease renewal soon and I don't think the market can justify a rental increase this time round.

I'll be quite happy if I'm wrong, but I think Rocky is going to stagnate or decline slightly for the next year or 2.
 
see_change said:
Jen

Can you do that in dollar terms rather percentage change ?

Brisbane had moved in the two years prior to 2004 so some of the growth in the last cycle would be missing from the Brisbane cycle , where as most would have been picked up in rocky .

If you drew any conclusions from that it would be , buy Brisbane , and assuming rocky doesn't take off in the next two years , look at buying then.

Cliff
Click to expand...

Hi Cliff

Please see the attached graphs on central Rocky. Data is a little bit old, but still interesting. I've also attached one on Gladstone which I thought was interesting given the current 'decline'.

View attachment Rex Analysis for Rockhampton QLD Suburbs A-E.pdf
View attachment Rex Analysis Rockhampton Suburbs E-M.pdf
View attachment Rex Analysis Rockhampton Suburbs N-Z.pdf
View attachment APM Data Rockhampton City 30082013.pdf
View attachment Gladstone.pdf

Cheers

Jen
 
Property managers I've been chatting to have been pointing to a decline in rents across Rockhampton in the near future resulting from recent job losses in the area and spillover of oversupply from nearby Gracemere.
 
New CSG project in Gladstone any effect??

While this isn't directly related to Rockhampton, it appears that a new CSG project is being approved for Gladstone. I wonder if this will boost the area??
 
my research indicates that the market is at probably near the bottom or the bottoming out of the cycle, you've got good yields, prices have fallen,

that being said, I do also feel that the rents arent as strong as they could be, have heard a few PMs say its falling, some say its steady

the overall activity in the area seems to be steady to flat, possibly a slight increase, but a few articles/quotes ive heard is that economic activity has either not been as high as predicted/reported, or is even dropping off,

Rocky isnt a mining town so it shouldnt collapse like a lot of single mining towns but the effects of the mining industry do affect the area,

whats everyones prediction/opinions on the currrent state

one thing ive noticed but crappy areas like Depot hill seem to be taking a substancial hit
 
Hi

I have just been reading one of Terry Ryder's latest reports 'Cheapies with Prospects' and Rockhampton still features, so I think it's a case of 'watch this space'.

Yes, Depot Hill has taken a hit, but no surprises there. It is the main flood zone, and no investor is likely to buy there.

Also, Gladstone is currently playing 'catch up' in terms of absorbing the over-supply at the moment, but I think population projections for the area would suggest that this is not likely to continue in the longer term.

If you look at the rental data for the region, it is not that rents have exactly bottomed out, and the number of new bonds being lodged appears to be actually increasing in many areas. It will be interesting to look at the new quarterly data. I will post an update here when it is available.

Cheers

Jennifer
 
norwoodman said:
Property managers I've been chatting to have been pointing to a decline in rents across Rockhampton in the near future resulting from recent job losses in the area and spillover of oversupply from nearby Gracemere.
Click to expand...

I just had a chat with my property manager today and she echoed this. Vacancy rates are the highest she's seen in 7 years, so as a result rents have come down. It takes her up to 6 weeks to rent a place out now, whereas her usual average is 4 days.

Gracemere is apparently facing a glut of properties, with one builder/developer having 150 houses sitting empty. Interstate investors who purchased new in Gracemere are not happy now that the $500 p/w rental guarantees are turning out to be a pipe dream. More like low $300's and this is what's causing more problems for areas like Berserker as people are weighing up the extra 10 minute drive to Gracemere against renting for the same price close to town but an old house instead of new.

On the plus side, she said sales of the cheapies are starting to pick up and they're expecting an improvement early next year.
 
Of The Vultures said:
I just had a chat with my property manager today and she echoed this. Vacancy rates are the highest she's seen in 7 years, so as a result rents have come down. It takes her up to 6 weeks to rent a place out now, whereas her usual average is 4 days.

Gracemere is apparently facing a glut of properties, with one builder/developer having 150 houses sitting empty. Interstate investors who purchased new in Gracemere are not happy now that the $500 p/w rental guarantees are turning out to be a pipe dream. More like low $300's and this is what's causing more problems for areas like Berserker as people are weighing up the extra 10 minute drive to Gracemere against renting for the same price close to town but an old house instead of new.

On the plus side, she said sales of the cheapies are starting to pick up and they're expecting an improvement early next year.
Click to expand...

Potentially, there might be more people who might decide to move from the Rockhampton suburbs out to Gracemere once the Yeppen North road duplication upgrade (Bruce Highway southern entrance to Rocky) is completed later this year as this will further reduce travel times into Rocky from Gracemere.

The downside of being out in Gracemere is still that of being cut off from the rest of Rocky during floods.

Interestingly enough, SQM has vacancy rates in postcodes 4700 (Rockhampton) and 4701 (North Rockhampton) as being in the 2-3% range, while it is over 8% in 4702 (Gracemere).
 
Arnoldus said:
More supply on the way on top of what's been happening in Gracemere.

http://www.themorningbulletin.com.au/news/housing-boom-expected-rockhampton-development-thri/2064797/
Click to expand...

There's a number of estates under way in Parkhurst and Norman Gardens across North Rocky, but most of them are small releases, or small sections of larger estates gradually being released, so they aren't of too much concern at the moment. Out at Gracemere it is a completely different story where hundreds of properties have flooded (pardon the pun) the market.
 
Gee I can't wait for brisbane to take off, so all the developers bugger off and start flooding the market there.. Sorry brisbane investors..
 
Hmm.
I would avoid mining focused properties - e.g. Gracemere. Thinking outside the square could be helpful though. Personally, I prefer the older suburbs with value add.
Cheers
Jen
 
JenJen said:
Hmm.
I would avoid mining focused properties - e.g. Gracemere. Thinking outside the square could be helpful though. Personally, I prefer the older suburbs with value add.
Cheers
Jen
Click to expand...
Hi Jen I sent you a PM, not sure if your aware or not.
Jenko
 
Hi guys,
Could you tell me what Koongal is like? What is your reason norwoodman for staying clear? I have been looking at a few in Koongal, Allenstown and Berserker that are just inside the 9.5m flood line with great yields. Hoping to get up there soon.
Cheers
 
House Hunter said:
Hi guys,
Could you tell me what Koongal is like? What is your reason norwoodman for staying clear? I have been looking at a few in Koongal, Allenstown and Berserker that are just inside the 9.5m flood line with great yields. Hoping to get up there soon.
Cheers
Click to expand...

Koongal is a hilly residential area that is almost entirely housing with hardly any amenities or much nearby employment in the area, and a number of rundown pockets. Other areas like Park Avenue and Berserker have similar median house values but are closer to amenities and employment.

The yields in the flood prone areas might be higher than outside the flood zones, but the council rates are just as high for the lower rents and property values, and insurance premiums in these zones will generally be a few thousand dollars more simply for being in it.
 
Gladstone is not 10 minutes from Rocky? Try 75 minutes.

When prices were rising in Gladstone, they had next to no impact on prices in Rocky. Why would they be impacting prices in Rocky now that prices in Gladstone are falling?
 
norwoodman said:
Gladstone is not 10 minutes from Rocky? Try 75 minutes.

When prices were rising in Gladstone, they had next to no impact on prices in Rocky. Why would they be impacting prices in Rocky now that prices in Gladstone are falling?
Click to expand...

ahh nuts, I got confused with gracemere!! sorry
 
TMNT said:
assuming this article is correct or relatively correct,

http://somersoft.com/forums/showpost.php?p=1117670&postcount=882

does that not mean that since rocky is so close by, sure this will have severe negative conseuqences????? I just cannot imagine a subub 10 mins awa having a vacancy rate of 10% with falling prices of $50k, where as rocky having a low vacancy rate with any capital growth
Click to expand...

My gut feeling is Gracemere (and perhaps Parkhurst) has acted to keep a ceiling on house prices in Rocky. The de-amalgamation and the spectacular rates rises (particularly for IP holders) have also put a dent in things perhaps.

Also, reading the local news, there's been lots of talk about some pretty big housing estates and developments coming in 2014 and beyond in Parkhurst that may push up vacancy rates on the north side.

Maybe if Rocky/Gracemere can become a DIDO hub and a host for local mining support industries, it can absorb the increase in housing supplies and get back to a balanced market?
 
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