Microbusinesses, freelancers and mining to drive property prices in regional Queensland in 2018
Gladstone, Queensland (3 January 2018) Property values in regional Queensland are expected to achieve steady growth in 2018, according to leading real estate group Raine & Horne.
“There are signs that real estate markets in regional Queensland will enjoy a steady 2018 because of growing economic diversity that is enabling more city slickers from Brisbane, Sydney and Melbourne to go bush and earn a living,” said Steve Worrad, General Manager, Queensland, Raine & Horne.
“Regional Queensland’s affordability is a major appeal for owner-occupiers and investors, with values starting at less than $200,000 in some regional centres. This figure won’t even pay for the stamp duty on some properties in Sydney and Melbourne.
“It’s also clear that improved infrastructure such as better internet connectivity is boosting the appeal of living and working outside capital cities, while it appears stronger mining conditions will also help values in some Queensland regional growth hubs in 2018.”
Far North Coast
In 2017, properties in the holiday and sea change Mecca achieved average price growth of 5-10%, according to David Cotton, Co-Principal, Raine & Horne Mossman/Port Douglas.
“The results for individual properties in Port Douglas varied depending on their location, property type, build quality and level of demand,” said Mr Cotton.
“Predicting median prices is a challenging business without the help of a crystal ball, but it’s fair to expect growth close to those achieved in 2017 will be achieved over the next calendar year.”
Cashed up sea change buyers from Sydney and Melbourne continued to make Port Douglas home in 2017, noted Mr Cotton.
“There are plenty of owner-occupiers, who are cashing out of Sydney after enjoying incredible gains over the last five years,” he said.
“They are selling a property in Sydney for $2 million, which enables them to buy a fabulous house in Port Douglas for $400,000 - $450,000.
“This transaction leaves these people with plenty of cash in the bank for further investment or to fund a decent retirement.”
Many of the former Sydneysiders and Melbournians relocating to Port Douglas, Cairns and Mossman are still in the workforce or operating a small business, according to Mr Cotton.
“The NBN is being rolled out, so we have stockbrokers, futures market traders, web designers, and other freelancers, who don’t need to reside in a major city to stay connected,” he said.
“The surge in microbusinesses and freelancers operating from Port Douglas is another factor underpinning real estate activity in our region.”
Meanwhile, activity in Australia’s mining sector is set to accelerate through 2017/18, auguring well for exports and the broader economy, according to a new report from leading independent economic forecaster and industry analyst, BIS Oxford Economics.
According to one media report, Byerwen Styx and Taroborah are three coal projects expected to pump $330 million worth of construction work into the Central Queensland economy over the next year. This stronger outlook for resources investment does not include Adani’s Carmichael coal project.
The outlook for coal remains positive, and this will flow through to real estate markets in 2018 such as Mackay, Rockhampton, Bundaberg, Gladstone and Hervey Bay, noted Des Besanko Director of Raine & Horne Mackay, Mackay Beaches and Moranbah.
“Gladstone provides commercial and industrial services to the mining sector, along with engineering, and these companies are ramping up their workforces,” said Mark Patton, Principal of Raine & Horne Gladstone.
“Some of the mines are coming out of mothballs too, because of higher commodity prices.”
The Gladstone real estate sweet spot lies between $150,000 and $300,000, in suburbs such as Telina, Clinton and Glen Eden, noted Mr Patton.
"Modern town houses are selling for less than $150,000, which is very affordable " he said.
“The region’s fledgling LNG sector, a spike in cruise ships docking at Gladstone Harbour, and the improved outlook for resources will contribute to a more active year for Gladstone property in 2018,” said Mr Patton.
"Gladstone has fully developed infrastructure, including a regional airport, that offer regular commercial flights from Brisbane, and one of the best port facilities on the Australian east coast. In combination the port and airport are helping Gladstone become a more economically diverse regional city.”
For further media information contact:
Steve Worrad, General Manager Queensland, Raine & Horne Group on 0409 920 697
Kim Pilkington, Communications Executive, Raine & Horne Group on 0414 358 722