Josh Stanton | AAPI CPV
Certified Practising Valuer

Welcome to the Gladstone 2023 Full Time Review! In this edition, we will analyse the performance of the Gladstone  property market during the second half of 2023. Explore the insights crafted by your local Gladstone property valuer, Josh Stanton, to attain a clear understanding of the current Gladstone market.

1.  LAND

A total of 39 vacant blocks of land were sold in the second half of 2023.

Up to 1,500 sqm

15 land re-sales of blocks ranging in size from 674 sqm to 1,447 sqm show sale prices ranging from $55,000 to $250,000. Suburbs include Calliope, Gladstone Central, Gladstone Harbour, Glen Eden, Kin Kora, O’Connell, South Gladstone, Tannum Sands, Toolooa and West Gladstone.

20 developer land sales of blocks ranging in size from 160 sqm to 1,317 sqm show sale prices ranging from $105,000 to $192,000. These estates include:

• Hill Close, Clinton (12)

• Riverstone Rise, Boyne Island (4)

• Jabiru Estate, Glen Eden (3)

• Tannum Blue, Tannum Sands (1)

In a nutshell:

• Several established estates from early 2010’s era have recently released some of there allotments to the market, although the releases are relatively small in numbers (less than 50) and not in full stages.

• The development of new subdivisions or speculation of such is limited, attributed to elevated civil construction costs and generally low sale volumes in the land market.

• Median value across all sales is $122,000 with a median time on market of approximately 4 months. A decrease in median value due to a higher proportion of sales at the lower end plus a higher proportion of small lot sizes (sub 400 sqm) selling compared to H1 of 2023 however an increase in total transactions by 16.67%.

1,500 sqm + Rural Residential blocks

Very limited sales transactions occurred in this segment with just 4 sales. Hard to gauge any data from that!

2. STRATA – UNIT/TOWNHOUSE/APARTMENTS

Consistently over the past seven years, Gladstone has maintained its status as one of the most affordable strata markets in the state, if not along the entire east coast of Australia. In the second half of 2023, Gladstone recorded a total of 200 strata sales, with a median unit price of $269,000.

The strata market has experienced an increase in values this year, following a period of relatively stable activity over the preceding 18 months following a surge in prices during the COVID period. Key factors associated with the Gladstone strata market include:

• A median increase of 9.6% compared to the first half of 2023 and a 12.6% increase compared to the second half of 2022.

• A significant surge in sales volume, up 34.2% from the first half of 2023 and a 17% increase compared to the second half of 2022.

• A tightening vacancy rate.

• Robust rental increases.

• A rise in body corporate fees due to escalating insurance premiums stemming from increased replacement costs.

• No new supply of stock to the market or unit developments in the pipeline.

• A slowdown in interest rate rises.

• A predominantly investor-driven market, where the above mentioned factors have influenced market sentiment.

The majority of activity in the strata segment falls within the $150,000 to $350,000 range, with a minimal 8.5% of strata properties transacting for more. Out of the total 200 strata title sales, only 17 exceeded the $350,000 mark.

(Gladstone Central – Courtesy of Aerial Media Gladstone) 

3.  DWELLINGS

The dwelling segment has seen an upward trend in the past six months, with data indicating a 3% median price increase from June 2023. In the latter half of 2023, Gladstone recorded a total of 763 dwelling sales, with a noteworthy median price of approximately $407,000.

The $300,000 to $500,000 range, comprising 518 sales or 67.9% of transactions, remains the most popular. Robust volumes and high confidence persist, particularly for the modern standard 4-bedroom, 2-bathroom, 2-car garage configuration. This configuration is particularly sought after for properties with multiple living areas, a large outdoor space, side access for a shed or pool, and the presence of a shed.

Sales volumes for the second half of 2023 increased by 5.8% compared to the first half. Notably, five sales transacted for $1 million or more during this period. The standout sale during this period was 34 Booth Avenue, Tannum Sands, a modern 2020-built, architecturally designed two-storey dwelling featuring 4 bedrooms, 3 bathrooms, a 4-vehicle garage, an in-ground swimming pool, on a 720 sqm allotment with ocean views, sold for $1.45 million.

Key factors associated with the Gladstone dwelling market for 2023 include:

• Steady demand for established dwellings.

• Increased interest from local and interstate investors.

• Instances of multi-offer scenarios arising from competition between investors and owner-occupiers.

• Low average days on the market at 56 days from listing to settlement.

• An uptick in job listings.

• A rise in the local population.

• Substantial rental increases.

• A tightening vacancy rate, reaching 1.1%.

• Limited supply of new dwellings.

• Tannum Sands boasted the highest median value with a median price of $500,000.

• Notable infrastructure spending in the region.

• Major industry announcements in the renewables sector.

• A further reduction in mortgagee in possession and forced sale activity.

Tannum Sands boasted a median price of $500,000 for the period. Courtesy of Aerial Media Gladstone.

4. DWELLING RESALE DATA

The table below presents resale data for dwellings in the Gladstone region, encompassing transactions in H2 of 2023 as well as the preceding two years (24 months) leading up to H2 2021. The analysis specifically focuses on resale transactions within the Gladstone region that underwent a marketed arms-length transaction. This approach serves as a reliable indicator for assessing the market dynamics in each suburb, offering a detailed account of the specific properties and their returns over the corresponding timeframe. Notably, the analysis makes a diligent attempt to exclude resale data for properties that underwent significant alterations such as extensions, renovations, or substantial ancillary additions. This method provides a different perspective compared to median suburb pricing, which can be skewed by a variety of factors. Please note that the availability of such data varies, and some suburbs may not have recorded any dwelling resales during this period, to the best of our knowledge.

5. RENTS

Gladstone's rental market continues its upward trajectory! According to the REIQ, The official vacancy rate for rental properties in Gladstone has dropped to 1.1%, a decrease from 1.6% in June 2023, indicating a notably tight rental market as acknowledged by REIQ and various other experts.

The median rents are now at their highest point in a decade, showcasing a continuous upward trend. This surge in rental prices is attributed to the limited availability of new rental properties, coupled with a significant influx of individuals relocating to the region in response to the abundance of high-quality job opportunities.

The comprehensive overview of the general residential rental market, encompassing flats, dwellings, and townhouses in Gladstone, is detailed in the table below.

(Data from Residential Tenancy Authority – rta.qld.gov.au)

The preceding data indicates a robust growth in the Gladstone residential rental market over the last year. Specifically, the rental value for a standard four-bedroom dwelling has experienced an increase of approximately 7.6%, while the three-bedroom townhouse has seen an uptick of around 13.5% during this period. In terms of tenant demand, the four-bedroom dwelling and the two-bedroom flat recorded the highest number of bonds lodged over the quarter.

The rental market in the region consistently maintains its affordability compared to neighboring cities in Central Queensland. Furthermore, there is an additional aspect of having a higher per capita availability of modern accommodations compared to these cities. The graph below illustrates the contrasting median rents on a weekly basis for the region's most sought-after rental types: the 2-bedroom flat and the 4-bedroom dwelling.

The preceding data underscores the affordability within the Gladstone rental market in comparison to its Central Queensland neighbours, which broadly maintain similar vacancy rates and generally lower rental yields. Specifically, in both the 2-bedroom flat and 4-bedroom segments, Gladstone lagged behind its closest neighbour, Rockhampton, by 10.4% and 5%, respectively.

(Gladstone Port – Courtesy of Aerial Media Gladstone)

Josh Stanton
Certified Practising Valuer
josh.stanton@opteonsolutions.com
0417 511 410

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