THE Gladstone property market is on the road to recovery and investors should take a second look at the industrial hub, according to a new report.
The Gladstone Market Outlook report revealed that the Port City was at the bottom of the property cycle after reaching a peak in 2012, but had the "potential for price growth in the short-to-medium term".
"We believe that this is unlikely to happen over the next 12 to 24 months, given the current misconception of the Gladstone market and the area's current oversupply. Yet, now is a great time to buy investment property in Gladstone," said the author of the report, property researcher Michael Matusik.
"Prices are negotiable, rents are at the bottom of the cycle and sales volumes are likely to increase in coming years. In addition, there is a lot of stock from which to choose. Counter-cyclical investors, with the mindset to hold for a full cycle or more, should seriously look at Gladstone."
He said current market conditions were positive - the area was experiencing strong population growth, job creation was improving and there was a "high and growing underlying demand" and a need for more rental property.
"Gladstone has a young demographic profile - this will drive the need for affordable homes and more attached property."
It's a positive outlook for the city, following the peak of the property market two years ago when values, rents and new supply exceeded the area's property fundamentals.
"The area, about five years ago, was undersupplied with new stock. Exaggerated rents were being paid by energy and construction workers," he said.
"Many were desperate to find accommodation, often at almost any cost. New supply increased and future investment returns detached from reality. A real estate bubble formed and a much-needed correction has now taken place. A rapid fall in weekly rents, and in many cases, prices and sales, has occurred over the last 12 months."
Gladstone's largest master-planned community, Riverstone Rise at Boyne Island, has reported an increase in inquiries in the past few months.
"We are definitely seeing renewed interest in Riverstone Rise from locals, especially with the completion of infrastructure and amenities like the new childcare centre and recreational Lilyvale Park," said Riverstone Rise project director Grant Botica. "Affordability is also an important factor for many buyers.
"With home and land packages starting from $389,900 and land from $197,000, Riverstone Rise offers very competitive prices in the local market."