Retirees take advantage of improved Gladstone property values

Wednesday, 9 November 2011

Retirees take advantage of improved Gladstone property values

  • Jobs growth has driven up buyer demand in Gladstone, where home values are up by 11% since June 2010
  • Savvy retirees are taking advantage and shifting to 'sea-change' locations such as Hervey Bay
  • Raine & Horne Hervey Bay has sold five of its last 10 properties to ex-Gladstone residents

With the resources boom continuing to drive up jobs growth in Queensland’s industrial hub of Gladstone, savvy retirees are taking advantage of subsequent buyer demand and improved house prices by selling their homes and moving to quieter locales such as Hervey Bay, three hours to the south.

Graham Cockerill, Principal of Raine & Horne Hervey Bay, said a cooperative marketing campaign between his office and Raine & Horne Gladstone was now opening buyers’ eyes to the property options available in Hervey Bay, which continued to be a popular retirement destination.

“In August we approached our fellow Raine & Horne office in Gladstone with the idea of marketing Hervey Bay properties to Gladstone buyers, and in the three months since, we have had many buyers respond positively to the idea,” Mr Cockerill said.

“By listing some of our great Hervey Bay homes with Raine & Horne Gladstone, as well as taking out advertisements in the Gladstone Observer newspaper, we have been able to offer Gladstone buyers some options they might not have previously considered.”

This resulted in an increasing number of retiree buyers head south since the collaboration between the two Raine & Horne offices commenced, Mr Cockerill said.

“Just as an example, of the last 10 properties Raine & Horne Hervey Bay has sold, five have been to ex-Gladstone residents.”

According to Mark Patton, Principal of Raine & Horne Gladstone, retirees are taking advantage of the ongoing strength of Gladstone’s property market, where demand for homes has risen as a result of the area’s large number of resources projects, such as the $16.2 billion Gladstone liquefied natural gas (LNG) development.

“As Gladstone has become bigger and busier, many older residents are deciding now is the time to sell up, especially while house prices are at a premium,” Mr Patton said.

Indeed, the Real Estate Institute of Queensland reports that house prices in Gladstone rose by nearly 11% in the 12 months from June 2010 to June 2011.

“This has seen retirees achieve good prices for their homes and then use this money to buy properties in locations such as Hervey Bay and Bundaberg, where prices are affordable and they can upgrade to newer and sometimes bigger homes.”

“Also, many of these people have owned their homes for a long time, so the price appreciation they are achieving on their properties is significant and quite often they are walking away with money in their back pockets for retirement.”

Retirees are selling their Gladstone homes for prices up to $500,000, and Mr Cockerill notes that his clients are purchasing brand new four bedroom homes in Hervey Bay for prices around $380,000.

In addition, he said many buyers were also snapping up Hervey Bay units as holiday rental investments or vacation homes.

“We have waterfront units available for under $200,000, while it is also possible to secure quality units in the Peppers Resort complex for around $300,000, and these make great holiday rental investments.”

Looking to the future, Mr Patton is hopeful of continuing the relationship with Raine & Horne Hervey Bay, which is assisting homebuyers in both towns.

“We have a good rapport with the Hervey Bay office, and we are now using this cross-promotional model in conjunction with other Raine & Horne offices as well, to the benefit of Queensland homebuyers.”

Raine & Horne is an iconic Australian property firm, with more than 360 offices worldwide. Also an established Superbrand along with Qantas, Vegemite, Woolworths and Myer, the company has four distinct property service brands including Raine & Horne Residential, Raine & Horne Commercial, Raine & Horne Rural and Raine & Horne Financial.

-ENDS-

For further media information contact:

Graham Cockerill, Principal Raine & Horne Hervey Bay on (07) 4128 2188 / 0409 491 369

Mark Patton, Principal Raine & Horne Gladstone on (07) 4972 1500 / 0409 496 353

Anna Truman, National Marketing & Communications Co-ordinator on 02 9258 5448