Gladstone nearing the property bottom
Back in 2011 Gladstone property was all the rage.
Unfortunately the predicted housing boom was based upon temporary factors, including a resources construction boom which finally an almighty peak in Queensland in the first quarter of 2013.
As construction turned to production, the housing boom turned to dust, despite unfounded claims that the new residential development could never lead to oversupply.
Over the last three years alone asking rents for houses have collapsed by 46 percent.
Units have fared even worse with asking rents down by 56 percent (for landlords lucky enough to find a tenant).
Source: SQM Research
Dwelling prices have followed a similar pattern, albeit in a marginally less painful trajectory, with unit prices down by 40 per cent over the past three years.
It looks as though the market may finally be set to move into equilibrium as the glut of supply is absorbed and the LNG export boom ramps up.
Vacancy rates in Gladstone have now been falling for 9 months, while rents and prices seem to be consolidating or forming some kind of bottom.
Source: SQM Research
It's all too little and too late for those that bought off the plan at the heady market peak, but it looks likely that the worst is over for now.
Even engineering construction activity began rising again in Queensland from the first quarter of calendar year 2016, but this time around resources projects have not been the driver, although the Adani project is still potentially lurking in the wings.
PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and blogger.
His latest book is Four Green Houses and a Red Hotel.