Property valuers weigh in on how CQ markets have performed in 2021

Property valuers have also provided insight into what’s to come for the regions of Gladstone, Rockhampton and Emerald in Herron Todd White’s Month in Review for June 2021.

Herron Todd White has released its Month in Review for June 2021. Picture: iStock

Property valuers have discussed how the markets in Central Queensland have performed so far in 2021, as well as provided insight into what’s to come in a national property report.

Herron Todd White’s Month in Review for June 2021 listed Rockhampton, Gladstone, and Emerald as rising markets, with a strong demand for new houses and declining trend in new house construction in Rockhampton and Emerald, and a fair demand for new houses and steady trend in new house construction in Gladstone.

Herron Todd White property valuer Cara Pincombe reported the start of 2021 recorded the continued rapid growth which started building in the latter half of 2020, with significant buyer activity across all market sectors in the Rockhampton region.

Ms Pincombe reported first home buyers, investors, upgraders, and downsizers were all active in the market.

“A number of first home buyers and upgraders have been spurred on by the HomeBuilder grant from the Federal Government, as part of the COVID-19 recovery package,” she reported.

“This has had a significant impact on new builds in particular and in turn saw demand for land in the developing estates of Parkhurst, Norman Gardens, Yeppoon, Hidden Valley, Taroomball, Lammermoor and Pacific Heights jump, but we also saw increased numbers of renovation projects on existing homes as well.

“Since the terms of the Home Builder Grant have now ended, we are seeing this unprecedented level of demand reduce back to normal levels.”

She reported the high-end of the market in Rockhampton continued to perform well, with four sales since January 1 ranging from $800,000 to $1.65 million.

“We are aware of another significant property on The Range currently under contract for well in excess of $1 million,” she reported.

She reported the Capricorn Coast had also recorded 14 sales for more than $800,000.

“This is a significant volume of sales at this price point for the region over a six-month period,” she reported.

She reported duplexes and flats had also been performing well.

“Investors are seeing opportunities here to increase returns upon lease renewals as vacancy rates remain very tight right across the region,” she reported.

“Rockhampton and Gracemere are showing 0.5 per cent vacancy, Yeppoon 0.6 per cent and Emu Park and Zilzie 1.5 per cent vacancy during April according to SQM Research.”

She reported something that had not been anticipated out of the pandemic was the level of interstate migration the region had experienced.

“It has been reported about 30,000 people have migrated from interstate to Queensland, with a significant number of those choosing to settle in a regional locality,” she said.

She concluded while the rapid growth was likely to slow down in the short term, all external influences continued ticking over in the background and were predicted to remain largely unchanged for the rest of the year.

“These factors include low interest rates, affordability, employment opportunities and strong commodity prices in our local industries,” she reported.

“This in turn is expected to have a positive influence on the residential property market in the area.”

Gladstone overview

Herron Todd White associate director Regan Aprile reported the most surprising thing seen in Gladstone’s market in the past several months was how close some values had come to the previous peak of the market pricing.

“Values have not returned to those unprecedented pricing levels of 2011 and 2012, however some are edging up to pricing last seen in 2014 and 2015 which shows an almighty jump in values,” Mr Aprile reported.

“The past several months has certainly felt like a boom time market with high levels of demand, low vacancy rates and a general lack of supply.”

He reported that he believed the market had risen as much as 30 per cent since it bottomed in 2018, with the most significant jumps in value occurring in the past 12 months.

“The bottom end of the market has jumped higher than the top end,” he reported.

“Other sectors such as the unit market and the rural residential market have had smaller rises over the same period.”

He reported that over the past few weeks, activity had slowed off a bit.

“New construction activity has slowed on the back of the HomeBuilder stimulus package ending,” he reported.

“This is perhaps a good thing, given the lengthy wait for some building materials and just how far in advance some builders are booked out.

“This in turn will influence the vacant land market.

“Sales activity in this market sector has slowed right down since the stimulus ended.”

He reported there was limited stock in most market sectors, and that it was “very evident that some agents are buying listings and promising vendors unrealistic value levels”.

“This in turn has started to stretch out the number of days on the market for many properties,” he reported.

“While the market has shown significant growth, vendors still need to be realistic in their pricing otherwise they risk an extended selling period with limited interest.”

He concluded that, considering all factors, he believed the market would continue an upward trajectory over the next few years.

“However, at a slightly slower pace than what has been seen over the last several months,” he reported.

“Affordability is still a key driver of Gladstone’s market and despite the growth we have seen, we are still one of the most affordable regions to live on the east coast of Queensland.”

Central Highlands and Coalfields overview

Herron Todd White valuer Kerry Harrold reported that after six months, the Emerald region market was still on an upward trend.

“The coal mine towns of Moranbah, Dysart and Blackwater continue to see firming rents and values,” Mr Harrold reported.

“Moranbah is leading the way again with tight vacancy rates and values that continue to climb.

“Modern property in Blackwater which is usually at the upper end has performed best with basic properties remaining fairly flat.”

He reported the high-end of the market, above $500,000, was performing well with acreage being in high demand.