Gladstone real estate market 'at bottom'

REIQ statistics reveal Gladstone's median house price dropped 3.2% to $290,000 in the three months to December and units fell a dramatic 20.3% to $185,000

BARGAIN BUYS: The Gladstone property market is proving attractive to first home buyers. Picture: Brenda Strong

GLADSTONE'S real estate market appears to have "hit the bottom" of the property sales cycle according to one agent who says it's just a matter of time before it begins climbing again.

Ray White Gladstone director John Fieldus said Real Estate Institute of Queensland December quarter sales data showed things were at "six o'clock" with the volume of listings dropping off "significantly" and the market was proving a boon for first-home buyers.

"There is a perception out there that the market is rattling along the bottom," Mr Fieldus said.

"There's some expectation that things will turn around sooner rather than later.

"There are people out there who can wait to sell and are prepared to wait just to see if it settles down."

The figures show Gladstone's median house price for the quarter dropped 3.2% to $290,000 from the previous quarter and units fell a dramatic 20.3% to $185,000.

The median house price for the year was $323,875, down 10.7% from a year ago and down 27.5% from five years ago when it was sitting at an unsustainable $447,000.

A total of 95 houses and 27 units changed hands.

Because of the low number of sales, December quarter median sale prices were not available by suburb.

However, Calliope had the highest fall over the year of 22.5% from $279,000 and Agnes Water recorded no change from $330,000 12 months ago.

Mr Fieldus said Gladstone's market had been on a "tumultuous ride" since the global financial crisis of 2007-08.

"We had to navigate through that," he said.

"Then we had the almighty boom when we had 14,000 extra people in town but that went bust."

Mr Fieldus said many buyers were determined to pick up properties at "rock bottom" prices.

"They're a very powerful customer at the moment," he said.

"They will hold back - they are happy to wait and punt around and exploit the market in some ways."

Mr Fieldus said the rental market was perfect for families wanting to pay low rents and live in a "country" town.

He said if a major project took off or there was a significant influx of people on the back of higher coal prices, the region's 600 rental vacancies would disappear fast.

"The town is navigating strongly because the coal prices are way up and the port is putting through record tonnages," he said.

"There's talk of a bio-diesel plant here and the government wants to see a few things happen here."

ARM NEWSDESK

SUBURBS TO WATCH:

Kirkwood

Size: About 8sq km.

Predominant age group: 0-14 years.

Households: Primarily couples with children.

Likely mortgage repayments: $3000-$4000 a month.

Ownership: 72.2% of homes owner-occupied.

Tannum Sands

Size: About 85sq km.

Predominant age group: 0-14 years.

Households: Primarily couples with children.

Likely mortgage repayments: $1800-$2400 a month.

Ownership: 68.8% of homes owner-occupied.

Boyne Island

Size: About 49sq km.

Predominant age group: 0-14 years.

Households: Primarily couples with children.

Likely mortgage repayments: $1800-$2400 a month.

Ownership: 69.7% of homes owner-occupied.

Glen Eden

Size: About 16sq km.

Predominant age group: 0-14 years.

Households: Primarily couples with children.

Likely mortgage repayments: $1800-$2400 a month.

Ownership: 70.8% of homes owner-occupied.

Telina

Size: About 14sq km.

Predominant age group: 0-14 years.

Households: Primarily couples with children.

Likely mortgage repayments: $2400-$3000 a month.

Ownership: 78.9% of homes owner-occupied.

Source: CoreLogic RP Data

Originally published as Gladstone real estate market 'at bottom'