Central Queensland mining region house price growth stabilising: Herron Todd White

Dramatic house price growth in central Queensland’s mining regions appears to have stabilised, according to Herron Todd White’s latest report.

The July Month in Review report found prices in Mackay, Rockhampton and Gladstone remained steady in recent months.

The report found a large number of residential properties have come onto the market in Gladstone and suggested some prices would have to be reduced in order to achieve sales.

An influx of worker accommodation over the next couple of years is said to be contributing to lower confidence in the area.

“Consequently we highlight the potential for market correction following the construction of major LNG projects and therefore do not foresee further large increases in capital growth,” Herron Todd White says.

Future workforce numbers in the area are hard to predict, and the report says housing demand may change.

In Mackay rentals figures have grown in the last six months, resulting in increased demand for the sub-$450,000 market from owner-occupiers avoiding paying rent and keen investors cashing in on rental increases.

And in Rockhampton the median sale prices has remained steady over the past 24 months.

The report found sales volumes in the under-$350,000 price range have improved in the first half of 2012 due to buyers enjoying affordable investment houses and low vacancy rates.

However, the prestige housing and coastal unit markets have suffered over recent years, with extended selling periods and reduced list prices required to secure a sale.

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