CQ housing market rising while supply remains tight

The Central Queensland housing market had experienced major growth but the supply is struggling to meet the demand, according to a new report.

Central Queensland’s housing market has experienced major growth in the past year but most towns were experiencing significant shortages, according to a new report released by valuers Herron Todd White.

Valuers Steve McDonald and Cara Pincombe wrote the report.

They stated the Capricorn Coast has been the ‘shining light’ with strong performance, low vacancy rates, sold out developments due to business grants, new developments taking place and southerners migrating to the region, among other things.

The report stated the extent of the price increases was something that hadn’t happened in a long time.

According to report, Rockhampton’s market has grown quite well.

However the community has to grapple with a severe shortage of available property in relation to demand.

There have been increases in prices and activity in attached housing, although there were only limited options for this in Rockhampton.

“Traditionally the unit market has been a mixture of both investors and owner-occupiers, particularly in the entry level to mid-range price point,” the report stated.

“Riverside and beachside apartments also see a mixture of buyers although the more spacious the unit and better the view, the more attractive to owner- occupiers, many of whom are downsizers, having recently sold a property which had been the family home for decades.”

An extremely small sector of units in Rockhampton capable of exceeding the $1 million value.

Most multi-unit apartments were purchased by investors.

A new residential development in Gladstone, Queensland, Wednesday, Jan. 18, 2012. A housing shortage has seen an increase in building projects and house valuations, a result of the liquefied natural gas (LNG) industry expansion. (AAP Image/Dave Hunt) NO ARCHIVING

Associate director Regan Aprile said Gladstone’s market growth was strong, although they predicted it to be steady in 2021.

Values for established housing in Gladstone have risen about 30 per cent and units 15 per cent.

The report stated vacant land was in high demand during the construction grant but abruptly halted after it ended.

“It has definitely been odd to see Gladstone booming again, especially when it is not on the back of a new major industry coming to town,” Ms Aprile wrote.

“While there have been a number of announcements this year, particularly in relation to the proposed hydrogen and alumina plants, these projects are smaller scale and will not have significant impacts on our property market.

“It will be interesting to see if the market activity slows up a bit over the typically quiet months in December and January or whether it just powers ahead.”

But feasibility of new unit complexes remains unlikely and no new apartment buildings have been constructed in the past seven years.

View the full report here

Originally published as CQ housing market rising while supply remains tight