First-home buyers returning
Changing conditions in the Gladstone property market have boosted opportunities for first-home buyers and local purchasers, with investor numbers dropping.
ACCORDING to local REIQ accredited agencies, the Gladstone property market recorded a much-needed market correction during the second half of 2013.
The local housing market is now much more balanced, with a resurgence in first-home buyers, as well as local activity quietly starting to take place.
Renters finally have some choice following several years of very difficult leasing conditions, but the rental market remains extremely active.
Prices have softened, however, given the slowing in new housing this could change sooner than many anticipate given Gladstone’s historic growth patterns.
The latest REIQ figures show that during the September quarter 2013, the region’s property market continued to show easing conditions, with both the house and apartment sales markets recording a drop in preliminary sales numbers.
Its median house price dipped 8.5 per cent to $400,000 over the quarter while sales numbers were down 15 per cent, most notably in the prestige suburbs of Glen Eden and the Boyne Island – Tannum Sands area.
The sub-$350,000 price point, however, saw an increase in sales activity, which also contributed to the fall in the region’s median house price for the quarter.
According to REIQaccredited agencies, market activity was subdued, with investors all but gone.
The good news to this, however, was first-home buyers were finally getting their chance, given some very good buying opportunities were becoming available.
Sales activity in the apartment and townhouse market, which only makes up about 15 per cent of residential dwelling sales in the Gladstone region, returned to usual levels following a dip during the June quarter.
The median sale price was up 4.3 per cent compared to the June quarter, with an increase in sales of higher-quality stock in Gladstone City.
According to the latest sales market indicators from RP Data, the Gladstone residential property market was experiencing longer average days on market, coupled with increased average vendor discounting.
About one year ago, the region was recording the lowest discounting of just 5.4 per cent, but now has an average rate of 9•per•cent – the highest for all the major regions of Queensland.
The outlook for the region, according to REIQ accredited agencies, was more of the same within the next 12 to 18 months, which will see the Gladstone property market slowly return to normal market conditions as excess stock is either sold or taken off the market.
Local agents also expect to see a correction in property prices, which is good news for first-home buyers who have struggled to compete with investors during the peak of the mining boom.”