Gladstone QLD - How is it Going????

Anyone on the ground up there? How is Gladstone going? Are rents moving up rapidly? Are there heaps of people fighting to rent out properties? Are house prices moving up or is it dead?

What is the vibe?

Would appreciate any feedback. Thankyou.
 
Anyone on the ground up there? How is Gladstone going? Are rents moving up rapidly? Are there heaps of people fighting to rent out properties? Are house prices moving up or is it dead?

What is the vibe?

Would appreciate any feedback. Thankyou.

Hi mate
You have any property there, would you mind revealing the purchase price and suburb!

Gladstone is one of my options for my first IP, but the prices are already high rocketing

550 K for city inner circle 4BED / 2 BATH
500 for Tannum Sands & Boyne Island
430K+ if you travel 20 K from city , like Calliope

It is worth comparing place like Blacktown (Sydney) and Maitland (Hunter) still available for 430 K mark

I guess it is too late to get in to Gladstone market now
 
Hi mate
You have any property there, would you mind revealing the purchase price and suburb!

Gladstone is one of my options for my first IP, but the prices are already high rocketing

550 K for city inner circle 4BED / 2 BATH
500 for Tannum Sands & Boyne Island
430K+ if you travel 20 K from city , like Calliope

It is worth comparing place like Blacktown (Sydney) and Maitland (Hunter) still available for 430 K mark

I guess it is too late to get in to Gladstone market now

No, I do not have property there but I am very interested in the area. I think it will be the next Port Hedland but even better as it is not as remote and has got many industries. I don't think you are too late at all.

I am very interested with what people on the ground up there are seeing. I think Rooster lives up there.

I work with a bloke that bought up there in 2006 and now wants to flip?? his house so am thinking of taking that on.
 
No, I do not have property there but I am very interested in the area. I think it will be the next Port Hedland but even better as it is not as remote and has got many industries. I don't think you are too late at all.

I am very interested with what people on the ground up there are seeing. I think Rooster lives up there.

I work with a bloke that bought up there in 2006 and now wants to flip?? his house so am thinking of taking that on.

Sorry but I don’t think it will be like another Port Hedland or Karratha. Because of same reasons you said, it is not isolated so contraction cost should be very nominal, moreover land available to release is much higher than PH and Karratha. Defiantly there will be a spike in rental market when the LNG construction on peak but that is only temporary demand. It is good to compare with Darwin

ConocoPhillips came in 2005, house prices and demand were huge, but what is happening now?

Inner city Darwin apartments are over supplied and waiting to sell for years now

Northern suburb prices are coming down (sometimes vendor drops even 20% to get out of market)

Only Palmerston market is holding up, that too because of INPEX project, if INPEX decide not to come to NT then it will be a pathetic situation for Palmerston too …

Darwin growth was not sustainable; how we are sure same thing will not happen in Gladstone!
 
I am very interested with what people on the ground up there are seeing. I think Rooster lives up there.

I don't live up there anymore but have plenty of property up there.

Things are ticking along nicely as far as rents go. Last round of lease renewals were lifted between $80 -$150 per week.

0.7% vacancy rate at the moment and it will only get worse. Rental management agencies have no need to advertise at the moment because demand is so impressive.

The telling factor is that major construction hasn't even begun and when workers do mobilise it will be chaos.

Sadly, a lot of locals who are renting will be displaced because of the big money coming to town and can't afford the market increases.

I wouldn't say the boat has sailed on getting in up there. Prices have probably moved 10-15% but there is still a lot of stock on the market.

Until this is absorbed I don't think we will see anything ridiculous, but I'm sure it is only a matter of time.

The older housing stock has probably plateaued for now but at some stage the yields that are getting fetched for those properties should pull them along upwards.

6% yields on purchase price wouldn't be too hard to find at the moment.

Some examples:

- 4x2 brand new brick home is fetching between $600-$650 a week.

- 2 bedroom older units will fetch $300

- 3 bedroom fibro will get approx $350

- 3 bedroom older style brick about $400-$450


There is a lot of hype and rubbish articles getting around in API magazine/YIP. Its a matter of separating the quality developments from the over priced rubbish.

Cheers

Rooster
 
rental demand is huge.

can't get a tradie to quote for at least a month.

prices spiked 10-15% in oct and after announcements finally came through.

i won't touch any new stuff, buy old and close to cbd, units or houses, still plenty of upside i believe

if i had to name one place that will go up in 2011/12 it would be good ole gladdy!
 
Great stuff Rooster and Bigtone. This is the sort of stuff I was wanting to hear. Gladstone is my number 1 pick at the moment in Australia and has been for a while. Good luck with your properties. Any further info would be great.

Would also like to hear of more stuff to stay clear from up there. I must go up soon and check the place out. Cheers.
 
Sorry but I don’t think it will be like another Port Hedland or Karratha. Because of same reasons you said, it is not isolated so contraction cost should be very nominal, moreover land available to release is much higher than PH and Karratha. Defiantly there will be a spike in rental market when the LNG construction on peak but that is only temporary demand. It is good to compare with Darwin

I agree with your sentiments on comparing Port Headland to Gladstone as the land availability in Gadstone is far superior.

But Gladstone and Darwin, the scale of projects are poles apart.

The Darwin LNG was a $1.75 billion dollar project. Gladstone has a combined project cost of $65 billion.

The scale of what is about to happen there seems to be lost on a lot of people.

The demand will eventually dissipate, like Darwin, but the upside is phenomenal for the forseeable future.

Cheers

Rooster
 
Just something for interest sake so this is written down with a date on it.

On realestate.com.au there are 930 properties for sale in Gladstone and 77 for rent. This is including the surrounding suburbs. The suburb rating is 37 out of 100.

There are 634 for sale in Gladstone and 51 for rent if you take the tick off surrounding suburbs.

Will be interesting how the above changes over time. I know that more land can be released etc creating more properties for sale and there would be a lot of variables in this but if someone had these figures for a year ago it would be interesting to see.
 
just had the rent on one property today go from 280 to 350, a nice 25% increase, that has been pretty much the % increase every time a lease expires recently in gladdy
 
My PM has today recommended a rent increase on my 3 bed older style IP in Gladstone by $40 from $350 to $390pw on 6 month lease, after it went from $320 to $350pw six months ago. Seems to be no shortage of tenants. Value of the property seems to be increasing at about the same rate, i.e. 20% pa -ish and accelerating. Have had the property for about 4 years, did well initially then dropped back a bit but has more than picked up in last 12 months. Expecting good rents and more growth thru 2012-2013 at least.
 
My PM has today recommended a rent increase on my 3 bed older style IP in Gladstone by $40 from $350 to $390pw on 6 month lease, after it went from $320 to $350pw six months ago. Seems to be no shortage of tenants. Value of the property seems to be increasing at about the same rate, i.e. 20% pa -ish and accelerating. Have had the property for about 4 years, did well initially then dropped back a bit but has more than picked up in last 12 months. Expecting good rents and more growth thru 2012-2013 at least.

I agree Lawry, we had a nice boom and then a drop in values and rents, i believe rents are now above the previous highs and values are nearly at the previous peaks with plenty of upside on both to come.
 
We had a tenant in Tannum Sands wanting to break their lease for personal reasons last week, our PM said she will have no trouble increasing the current rent of $350, to $390-$400 and have someone move in within days ... I hope she's right ;-)
 
Well done everyone. Sounds like you are best just to do 6 month leases at the moment as a 12 monther may have you out of line with the market.

All the best with your properties. Hopefully I'll be buying up there soon. Thanks for posting the info. This sort of information is 1000 times better than any research house.
 
The latest SQM stats just came out with a 0.4% vacancy rate
http://www.sqmresearch.com.au/graphs/graph_vacancy.php?postcode=4680&t=1

To me the best indicator of future rents is the jobs to rentals ratio.
Current rentals on realestate.com.au = 74
Current jobs in Gladstone on seek.com.au = 1180
Current ratio = 15.9

This compares with Karratha
Rentals = 42
Jobs = 290
Ratio = 6.9

Port/South Hedland
Rentals = 52
Jobs = 341
Ratio = 6.5

There is clearly far more upward pressure on the Gladstone market than either Karratha or Hedland. As the thousands of workers pour in rentals will skyrocket.

I have noticed that typically in these markets the rental return tends to peak at 10% yield. It is likely that we will see this happen in Gladstone. Once rents hit 10% yield, (i.e. average house price $400k, average rent $800 per week), any further incremental rental increase will be proportionally reflected in the house prices, (i.e. when rents hit $1000 per week, properties suddenly leap to average $500k)

I think people will be surprised at how fast these kinds of rents will happen when there is such huge competition for very few rentals especially with so many competing projects all needing to house their workers. Corporates will pay a premium to secure housing as has already happened in Karratha, Hedland, Dysart etc.

Dysart is a great example of how fast these conditions can change:
18 months ago, 3 bedroom houses rented for $550 per week
1 month ago, 3 bedroom houses rented for $1,000 per week
today, 3 bedroom houses rent for $1,300 to $1,500 per week!!

Their jobs to rental ratio is 51/6 = 8.5

Watch their house prices skyrocket this year to balance out to the 10% yield rule.

My own house in Gladstone has had a rent increase from $360 to $450 per week in the past 8 months. I expect my next rent review in 5 months to be in the $540-$590 range although I could easily command more based on this search http://www.realestate.com.au/rent/i...nding=false&misc=furnished&source=refinements

It seems 3 bedroom fully furnished nice houses are going for $800+ per week
 
The latest SQM stats just came out with a 0.4% vacancy rate
http://www.sqmresearch.com.au/graphs/graph_vacancy.php?postcode=4680&t=1

To me the best indicator of future rents is the jobs to rentals ratio.
Current rentals on realestate.com.au = 74
Current jobs in Gladstone on seek.com.au = 1180
Current ratio = 15.9

This compares with Karratha
Rentals = 42
Jobs = 290
Ratio = 6.9

Port/South Hedland
Rentals = 52
Jobs = 341
Ratio = 6.5

There is clearly far more upward pressure on the Gladstone market than either Karratha or Hedland. As the thousands of workers pour in rentals will skyrocket.

I have noticed that typically in these markets the rental return tends to peak at 10% yield. It is likely that we will see this happen in Gladstone. Once rents hit 10% yield, (i.e. average house price $400k, average rent $800 per week), any further incremental rental increase will be proportionally reflected in the house prices, (i.e. when rents hit $1000 per week, properties suddenly leap to average $500k)

I think people will be surprised at how fast these kinds of rents will happen when there is such huge competition for very few rentals especially with so many competing projects all needing to house their workers. Corporates will pay a premium to secure housing as has already happened in Karratha, Hedland, Dysart etc.

Dysart is a great example of how fast these conditions can change:
18 months ago, 3 bedroom houses rented for $550 per week
1 month ago, 3 bedroom houses rented for $1,000 per week
today, 3 bedroom houses rent for $1,300 to $1,500 per week!!

Their jobs to rental ratio is 51/6 = 8.5

Watch their house prices skyrocket this year to balance out to the 10% yield rule.

My own house in Gladstone has had a rent increase from $360 to $450 per week in the past 8 months. I expect my next rent review in 5 months to be in the $540-$590 range although I could easily command more based on this search http://www.realestate.com.au/rent/i...nding=false&misc=furnished&source=refinements

It seems 3 bedroom fully furnished nice houses are going for $800+ per week

Mattnz, this is a great post and I like the way you have developed that ratio for the jobs to rental. Awesome thinking.

Good to see your house in Gladstone is performing strongly on the rental side. I definately got to get up there.
 
This compares with Karratha
Rentals = 42
Jobs = 290
Ratio = 6.9

Port/South Hedland
Rentals = 52
Jobs = 341
Ratio = 6.5

I'm not really sure seek and real estate.com provide the most accurate statistics. Hedland is a very localised market in most cases jobs and houses dont need to make it to the internet before they are snapped up, perhaps Gladstone is now the same? - Re; Hedland / Karratha I know this from experience. After all why spend money on advertising when you can get employees and lease houses without that added cost of popping ads on the internet?
 
We purchased a 3 bedroom 1940 house back in January on a 1000sq block in the CBD. We did a quick reno and it is rented for $380 a week. The lease runs out in October so hopefully we can increase then. We would like to build units on the block one day but can't see that happening for a good few years.

We have also purchased an off the plan unit that's due to complete at the end of 2012. It's going to be corporate let and some of the weekly rents the agent has told us is unbelieveable..
 
OK you Gladstone Gurus who have posted above. I have read a lot of threads re Gladstone and have come up with below 3 properties that are for sale.

What do you guys think? Any comments would be appreciated on location etc, value for money and anything else. I want to join you guys in owning something in Gladstone. Thanks in advance.

http://www.realestate.com.au/property-house-qld-gladstone-106754693
16 Mercury Street, Telina, $395,000

http://www.realestate.com.au/property-house-qld-gladstone-107301103
22 Waratah Street, Kin Kora, $449,000

http://www.realestate.com.au/property-house-qld-gladstone-107445431
5 Fergusson Crescent, West Gladstone, $499,000
 
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