Resources boom forces Gladstone vacancy rates down 8% in a year


29 April 2010

Resources boom forces Gladstone vacancy rates down 8% in a year


With five new gas refineries and a steel mill in prospect as well as expanding coal exports, vacancy rates in the Queensland port town of Gladstone have fallen from a peak of 10% to 2% over the last 12 months, according to Raine & Horne Gladstone.

In 2010, $65bn worth of planned and committed infrastructure projects are currently in the preliminary planning stages.

In 2007 there was only $23bn in planned and committed infrastructure projects for the Gladstone region, which represents a 191% increase in three years, largely driven by new LNG projects. 

There are 17 LNG projects proposed or committed to in Australia, with five planned for the Gladstone region. Additionally, solid progress is being made to establish a specialised steel works on government land as well as expanding coal exports and a projected shale oil industry in the region.

Raine & Horne Gladstone principal Mark Patton said this expenditure had generated a pressing need for suitable housing for an estimated 21,000 additional workers over the next five to 10 years.

“As a result, there are some concerns whether local housing infrastructure can cope with the expected population increase.”

At the same time, the demand for rental housing was presenting local property investors with plenty of opportunities.

“The increase in demand will be reflected in prices, so it’s fair to expect a general increase in rents across the board,” he said.

Moreover, word of the mining boom in the Gladstone region has filtered through to savvy interstate investors.

Over the past 14 days Raine & Horne unit specialist Allan Turner has placed 12, two-bedroom units under contract to interstate investors.

Raine & Horne is an iconic Australian property firm, with more than 400 offices worldwide. Also an established Superbrand along with the likes of Qantas, Vegemite, Woolworths and Myer, the company has four distinct property service brands including Raine & Horne Residential, Raine & Horne Commercial, Raine & Horne Financial Services and Raine & Horne Rural.

For more information on the Gladstone property market, contact Raine & Horne Gladstone on (07) 4972 1500.

For media information contact Mark Patton on 0409-496-353 or Rebecca Williams, National Systems and Support Coordinator (02) 9258 5410.