LNG attracts billions
These large projects attract billions in investment and flow-on economic activity,” Gladstone RBS Morgans manager Darren Eising said.
“As an example, for the anticipated workforce on one projects (say 3,000 at the peak of construction) should generate conservatively $90 million in additional tax revenue just on their salaries alone,” Mr Eising said.
“Having such large projects here should attract further investment into much needed social and industrial infrastructure that otherwise might not be made.
“Every new worker will need to be housed, fed and clothed - this should benefit many small businesses in Gladstone as a result. There are obviously some downsides as well but on the whole the LNG projects should be a net benefit to the town.
“Depending upon the severity of the conditions imposed, the projects are still more than likely to proceed - given the large investments made in the sector to date.”
The Gladstone housing market is expected to sky rocket with the announcement of the LNG environmental approvals with some predicting house prices will go up more than 200 per cent.
Raine & Horne Director Mark Patton over the past four weeks we have witnessed a flood of enquiry in respect to investors wishing to take advantage of the proposed Gas Industry announcement in conjunction with an influx of locals and new arrivals firming up their property options.
“With the housing rental sector currently at near record vacancy rates – less than 1%.Increasing demand and with diminishing supply will place an enormous amount of pressure on our market with both rental and property prices set to increase,” Mr Patton said.