Debt-fuelled property boom in CQ could end dramatically
GLADSTONE property owners are being warned they're "in for a bumpy ride", while building approvals have dropped in central Queensland.
CQUniversity property expert Dr Garrick Small said the rise in property prices was good and bad.
"For banks and some investors it is definitely good news. For the rest, well, tighten your seat belts. At some point in the future we will be in for a bumpy ride," he said.
The current property boom is one generated by debt which could end dramatically, according to Dr Small.
The latest building approvals figures released by the Australian Bureau of Statistics for February show good news from most of the regions except central Queensland, where approvals dropped from February last year to January this year.
Master Builders central Queensland regional manager Dennis Bryant said the industry was coming out of a cycle where the total number of buildings constructed went a long way down.
"We're in a situation where we're enjoying low interest rates and our clients should have confidence in the fact that if they commit to building now they're doing a good thing," he said.
Feb 2013 - 179
Jan 2014 - 166
Feb 2014 - 107
Source: Master Builders