The report forecast growth for Central Queensland commercial and residential property markets.
The report forecast growth for Central Queensland commercial and residential property markets.

Report: CQ property markets set for stability, growth

Central Queensland property markets, both commercial and residential, are set for a year of stability and growth, according to a new report.

The Herron Todd White February 2021 Month in Review said Rockhampton, Gladstone and Emerald markets performed relatively well last year because of few COVID-19 cases throughout Central Queensland.

It said those areas were on the rise, placing them in the “start of recovery” category for their commercial office markets.

Rockhampton’s was said to have fared “reasonably well” during the COVID-19 period, as its main industries avoided significant disruption.

Decreased vacancy rates and rent increases were forecast for 2021.

“With a number of large government projects underway and the general economic environment improving, a number of businesses are expanding, and new businesses are taking up previously vacant office accommodation,” the report said.

“Our prediction is that the continued economic activity will see vacancy rates start to drop, with some potential slight increases in rents.

“For tenanted properties with good tenant profiles and unexpired lease terms, we would expect yields to potentially tighten throughout the year as local and non-local investors compete for the currently limited supply of tenanted office properties.”

Residentially, houses were in the “rising market” category in all three locations, as were units in Rockhampton and Gladstone.

The report said that in Rockhampton, each market sector in the region was expected to perform well with continued growth.

“Whilst 2020 saw prices increase, affordability remains an appealing feature of Rockhampton and the Capricorn Coast residential markets,” it said.

“Rockhampton and the Capricorn Coast are experiencing a trend of population growth off the back of people deciding to relocate to regional areas, as the pandemic has highlighted the possibilities of working remotely for many people, combined with affordable housing in comparison to the metropolitan areas and many other benefits of regional living.

“Further, healthcare has always been a major employer in the region and the pandemic has provided even more employment opportunities in this sector.”

The same went for Gladstone: growth could be expected after the “rollercoaster” year that was 2020.

“The basic fundamentals for a rising market are in place,” the report said. “To put it simply, demand is outweighing supply.

“Many factors come into play here including a number of local infrastructure and industrial projects on the horizon (such as the proposed Gladstone Energy and Ammonia plant and two solar farms) and record low interest rates.

“We predict vacancies will remain fairly stable over the next 12 months with rents continuing to steadily rise.”

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