Why Gympie property bubble may be peaking

The insane property “bubble” that has gripped the Gympie region for the past 12 months or more, sending prices through the roof and choking an already tight rental market, may be finally plateauing. But not all property experts agree. Here is why:

The insane property boom that has gripped the Gympie region for the past 12 months or more, sending prices through the roof and exacerbating an already tight rental market, may be finally plateauing.

Property consultant Tina Tillinger from Anchor Realty said while house prices were not likely to drop, she believed the market would stabilise itself over the next few months.

“Last year we were getting anywhere from eight to 18 offers on a house, this year we're getting about three to five,” she said.

Properties that not long ago were only staying on the market for three days, were now taking more like seven days to sell.

Homebuyers who were paying up to $150,000 above the market price to secure a property in 2021 were now paying between $25,000 and $45,000 over.

Ms Tillinger said the problems we should be focused on now was interest rates.

“Depending on interest rates, which is out of our control, it depends on how hopped up people are with their finances and their purchases,” she said.

A rise in interest rates could lead to significant mortgage stress when buying in a high market.

“If we get more than one interest rate rise, which no doubt we will, that can unfortunately lead to mortgage stress when buying in high markets and they're living pay-to-pay. I have seen it before after a boom,” she said.

John Bambling, Gympie businessman and property consultant.

One piece of advice Ms Tillinger could give was to get in quick if you planned to sell your property.

“Sell before June,” she said.

“There's too many indicators at the moment if you want these high prices, because of what we’re already starting to see there’s a decrease of buyers and a decrease of the amount they’re willing to pay.”

Property consultant and the owner of Bambling Property Agents, John Bambling, said he thought the market was maintaining a steady level and he didn’t believe house prices were going to drop any time soon.

“It’s hard to pick because you think oh it’s going strong, then it keeps going. I still think it’s very solid but it’s a very tough thing to predict,” he said.

Mr Bambling said the reason he believed the market isn’t going to drop is due to not enough stock being on the market.

“Stock is very tight... We’re not getting enough of any supply demand, it’s just very solid,” he said.

Co-owner of Professionals Gympie, Ashley Coleman, said Gympie was nowhere near peaking yet as the international borders had only just opened.

“Nothing is going to change overnight,” he said.

Mr Coleman says he could not see the demand slacking off or any bubble bursting in the short term until interest rates started to bite in the next few months.

“We’ve still got a second wave of buyers coming up from Victoria and internationally yet,” he said.

Mr Coleman said while there was no ideal time to sell, he recommended selling it as soon as you could if property owners were contemplating it.

“Don’t hold on to it. Sell now, it’s a great time. Prices aren’t getting higher,” he said.

For more, check out our story on the Gympie rental crisis.

Originally published as Why Gympie property bubble may be peaking