News

Stalled Gladstone housing development has silver lining

Callum McAusland has another 1000 lots approved for development at Forest Springs.
Callum McAusland has another 1000 lots approved for development at Forest Springs. CHRISSY HARRIS

IT IS no secret Gladstone's housing market was put through the ringer last year.

And, with the number of vacant houses collecting dust around town, it's not surprising residential developments have slowed to a trickle.

But there is a silver lining: it's a buyer's market and house prices are at an 11-year low.

Queensland Treasury reports that of 4898 residential lots ready for development, just 1934 lots will "most likely" be developed in the short term.

But Real Estate Institute of Queensland Gladstone chairman Mark Spearing reckons this prediction may be too optimistic.

>> Gladstone a ripe opportunity for first home buyers

"It's probably a little deceptive," he said.

"It implies that these houses could hit the market next week but there are few, if any, who will develop in Gladstone.

"In the current market you can't bring a development online and sell at these prices and make a profit."

Builder and owner of Tenheggeler Homes Troy Tenheggeler echoed Mr Spearing's comments, saying while most developers had plenty of land available they were unlikely to begin sub-divisions until demand for housing returned.

"The reason developers get a lot of approvals for land is that as soon as there is a lift in the market they know in six months they're going to have stock," he said.

Ryan Sirait’s mum Yetty and his daughter and wife Aileen and Marleen Sirait are very excited about their new house.
Ryan Sirait’s mum Yetty and his daughter and wife Aileen and Marleen Sirait are very excited about their new house. Mike Richards

However, with five building projects under way, Mr Tenheggeler said it had been his strongest start to the year since 2014.

The residential development profile conducted by Queensland Treasury reported that Gladstone Regional Council approved 190 dwellings last year compared with 819 approvals in 2014, a decrease of 77%.

According to the council's planning department's Matthew Kelly the decline stems from a slow-down in construction at most of the housing development estates in the Gladstone region.

"The approvals for the current new residential estates are what we need for the foreseeable future," he said.

"Growth is happening and most of the estates are still positive but we've got what we need at the moment."

Painting a slightly different picture, Kirkwood's Forest Springs estate development manager Callum McAusland said there was an incorrect perception of an oversupply in the Gladstone housing market.

"In reality the numbers of houses that meet the requirements of Central Queenslanders are very limited," he said.

"There's about 20% of good quality housing here and it's moving quite quickly.

"Now is the time to buy.

The Forest Springs estate has approval for 1000 residential lots but is unlikely to bring on another stage of development for 12 months."

Queensland Treasury reports show that in 2015 the average sale price for a house in Gladstone was $380,000 while units and townhouses went for $275,000.

That is down $35,000 and $85,000 for houses and units on last year's average and it puts current house prices on par with 2005 levels, according to Mr Spearing.

However, with so many residential housing lots ready to go, Mr Spearing said there were some reasons to smile.

"It's good to know there are plenty of houses in the pipeline and this paints a good long-term picture for Gladstone," he said.

"But at the moment nobody is going to bring in land to lose money."

Mr Spearing said rental vacancies were about 10%.

"When you look at the history of weekly rents in Gladstone current figures are showing we are near the bottom," he said.

Topics:  development gladstone



How to survive a bushfire in your car

IT SOUNDS like a nightmare, but it can happen.

Eight reasons to join the RFS

SPREAD across 93% of Queensland, the Rural Fire Service has about 36,000 volunteers. And you could be one of them.

What if my insurer gives me grief?

CLAIMING your insurance cover after a natural disaster can go one of two ways. It can be a breeze, or like pulling teeth.

'Long-term confidence': $21b mine to bring jobs for decades

Adani's proposed coal mine in CQ is gathering steam. Photo Stefan Jannides AAP

ADANI'S INVESTMENT in technology shows long-term importance of coal.

Gladstone Hospital no-shows cost a whopping $630K

RESOURCES WASTED: Stuart Orr.

MORE THAN 3000 Gladstone appointment no-shows cost $630,000.

Plan for Curtis Island national park

NEW PARK? The Department is asking if locals if they should make large swathes of Curtis Island a National Park, or not.

NEW REPORT proposes tighter grip on Curtis Island.

Local Partners

Sia, Keith Urban top Aussie Grammy nominations

Nicole Kidman and Keith Urban at the 50th Annual Country Music Association (CMA) Awards

Beyonce dominates with nine nods for 2017 Grammy Awards

Exciting move to bring life back to Gladstone CBD life

BUSKERS GET GREENLIGHT: Local musician Nathan Bedford welcomed the council's decision to allow buskers to perform on Gladstone streets.

GLADSTONE'S CBD will be given a kick start ahead of the holidays.

Hailey Baldwin: I don't understand Taylor Swift's squad

Hailey Baldwin has taken a quick stab at Taylor Swift and co.

Taylor Lautner 'spotted smooching co-star'

Taylor Lautner has been romantically linked to Billie Lourd

David Beckham's tattoos come to life for UNICEF campaign

David Beckham has called for an end to violence against children

Pop star Liam Payne's Facebook hacked with porn

"Things that can happen to you when you don't have sex."

INSIDE STORY: The highlights of your $150 million CBD

GRAND PLAN: The highlights of the Ipswich CBD redevelopment and where they will be located.

Work on city heart's radical transformation to begin next year

VOTE IN OUR POLL: Sand mine opponents face serious dilemma

Public meeting for the proposed sand mine at Maroochydore last week.

Coast MP calls on Minister to stop KRA proposal with stroke of a pen

Developer's grand new multi-million dollar estate

NEW ESTATE: This is the only plan revealed by the property developer's new Billabongs Estate in Agnes Water.

DEVELOPER given the go ahead for a massive estate with 149 homes.

Couple's desperate $550K price drop to sell Gladstone home

Brian Headley and Kirstene Staib are selling their Kin Kora mansion for $750,000.

TELL tale sign of Gladstone's property market.

Seven Gladstone homes selling right now leave experts shocked

PROPERTY GURUS pick seven properties that show market has hit bottom

Ready to SELL your property?

Post Your Ad Here!