What $700k will buy in Central QLD’s property market

Where should buyers or investors in Rockhampton, Gladstone, and Emerald direct their cash?

What will $700,000 get you in Australia’s current property market?

That’s the question the Herron Todd White July 2021 Month in Review report sets out to answer, including valuations of the Rockhampton, Gladstone, and Emerald residential markets.

In the Beef Capital, $700,000 gives owner-occupiers several options, the report said, such as “a modern home in the northern suburbs of town or in the northern growth corridor of Parkhurst and Rockyview, or an established and renovated Queenslander south of the river on The Range”.

It said housing had become more expensive in the past 12 months, with South Rockhampton – Allenstown, Wandal, and The Range in particular – remaining “thinly-traded” at that price point.

“Moving onto an investor’s point of view,” the report continued, “$700,000 can buy you multiple homes at entry level prices in our older, established areas such as Berserker, Park Avenue, Koongal, Rockhampton City, Wandal or Depot Hill.

“This would provide a better return than one higher quality dwelling for $700,000.”

This house on Glencoe Street in The Range is listed for $699,000 and includes an in-ground pool. Photo: realestate.com.au

The report says that sets of flats would still probably provide the best return on investment, with gross yields between 7 and 8.5 per cent.

“Whilst $700,000 remains a healthy budget for the region, compared to 12 months ago, the dollar is not stretching as far as it did,” it said.

“Into the short to medium term, we anticipate this market sector to continue as it has been, given that external influences on our local markets are expected to continue over the short to medium term.”

In Gladstone, $700,000 will purchase “a large, well-appointed home with all the bells and whistles in an established suburb, typically on a 1,000 square metre plus allotment with a pool, sheds, etc.,” the report said.

“Alternatively, for around the same money, you can drive 10 to 15 minutes out of town to the rural residential suburbs of Beecher, Burua, Calliope or Benaraby and you will get roughly the same improvements but on a larger allotment.”

This home on Piper Street in West Gladstone is listed for $669,000. Photo: realestate.com.au

Investors in the Port City should buy multiple, small, old homes, or sets of flats, which offer between 6 and 12 per cent gross yields.

“With a continued tightening of the vacancy rate, rents continue to rise and returns are becoming more attractive,” the report said.

“Add to this the benefit of continued capital growth that is expected over the next couple of years.”

In Emerald, $700,000 would place a buyer in the “very upper” residential market in town, or the entry level of the rural market.

“It will buy you a property with a home built in the last boom of 2009 to 2012 that’s been well maintained with nothing left to do, usually in a good location and with most ancillary improvements in place,” the report said.

“In town, this price range has only been reached in the past 12 months and properties that tick all the boxes are sought after and reaching premium prices.”

Originally published as What $700k will buy in Central QLD’s property market