A leading Gladstone real estate identity shared her opinion on hydrogen’s impact on our housing market

Alicia Williams from Locations Estate Agents shares her views on how recent hydrogen project announcements will affect Gladstone’s housing market.

Plans to build a $1 billion hydrogen-equipment development facility in Gladstone sparked some concern about another boom and bust property market cycle in the region, but a real estate heavyweight says there is nothing to fear.

Alicia Williams, Real Estate Institute of Queensland Zone Chair for Gladstone, said the recent announcement that Fortescue Metals Group would build the biggest hydrogen electrolyser plant in the world in the port city was positive for the local economy, and she was not expecting a boom or bust cycle.

“(That is) due to the infrastructure in place including workers camps, which have been in use during and since the LNG construction period,” she said.

“The upward trend in the property market which we have experienced pre-Covid was largely driven by an overcorrection and a market recovery given an extremely low entry price, record low interest rates and an appetite for renters to move into home ownership.

“Since Covid-19, a net overall migration into Queensland from other states has been unprecedented.

“This is largely due to a change in lifestyle preferences, working from home arrangements and also the ability for people to reduce their debt exposure pre and post retirement by relocating to more affordable markets.”

Gladstone is no stranger to the boom and bust cycle, with the area most recently recording astronomical growth between 2010 and 2014 when three LNG projects were approved for Curtis Island and more than 14,000 workers rushed to the region to take up jobs.

Rents climbed and house prices in Gladstone soared, with the median house price peaking at $434,500 in the third quarter of 2012. Accommodation was at capacity and some residents were forced to live in tents.

But by the end of 2015, there was an oversupply of property in the region and in the first quarter of 2017, the median house price had plummeted.

Ms Williams said Gladstone had learned a lot through the last LNG cycle, and the new hydrogen proponents had completed significant research and due diligence to identify the main concerns of residents and stakeholders which included the impact on the local housing market.

Alicia Williams, Real Estate Institute of Queensland Zone Chair for Gladstone.

“This was evident given the presentations by each of the proponents at the recent GEA Hydrogen Conference and Forum last week,” she said.

“As an industry, are expecting that the recent news will have a positive impact on the market, with improved confidence from homeowners and investors.

“Overall, we are expecting that the Gladstone property market will see continued long term sustainable growth.”

When asked how many more houses would need to be built to cope with demand laid bare by the hydrogen boom, Ms Williams said buyers were looking for established homes.

“We have seen a lag in the new build construction for several years here in Gladstone, and a recent materials shortage and pricing hike will extend this lag further,” she said.

“Interestingly, we are seeing an emerging buyer trend whereby those who have accepted the wait time to build, are buying cheaper homes with a view to do a refurbishment and then sell in 12 – 18 months’ time once their new home is completed.

“Due to low interest rates, this is seen as a more viable option for buyers looking to build in the interim given the potential to put money into an asset as opposed to renting, and then potentially sell for a profit or break even during the construction time frame.”

Originally published as A leading Gladstone real estate identity shared her opinion on hydrogen’s impact on our housing market