City strong, but Calliope property hotbut Calliopeproperty hot
By REN LANZONnewsroom@gladstoneobserver.com.au
FIGURES made available in Gladstone yesterday indicate the city is in a healthy state or growth, but is far outstripped by Calliope Shire.
Local area comparisons show that the 10 year per annum price growths have been greater for the Calliope, Livingstone, Bundaberg and Rockhampton local authorities than for Gladstone (see table).
The figures were presented by PRD Nationwide franchise research manager Peter Bell during a visit to Gladstone yesterday.
He said in terms of gross yield over that 10-year period, Gladstone compared favourably with all those other areas (also indicated in the table).
"Gladstone is still a very good place to invest in real estate,'' he said.
Mr Bell was commenting on recently released Real Estate Institute of Queensland (REIQ) figures which showed that Gladstone housing market was trailing a number of other centres.
"While the REIQ figures are correct, they are only taking in the short term view over a period of one year.
"Property is an asset best held with a mid to long-term investment strategy.''
Mr Bell said investors needed to take a long-term view to get a true indication of performance, and a seven to 10 years view was a better indicator.
He said comparisons showed that while Gladstone's median house prices September quarter to September quarter over a 10-year period, went from $108,500 to $194,000, Rockhampton's went from $93,000 to $139,000 in the same time.
Calliope Shire's was even more dramatic ? from $119,500 to $258,000. "Also it's not all about price growth or capital growth ? return on investment, such as rental yields, has also to be considered.''
Mr Bell said interstate "sun belt and sea change'' migration was still the biggest driver in the Queensland market.
Affordability of investment has also been a big driver, but this was expected to level off because of rising real estate prices.