Gladstone Full Time Review 2024

Josh Stanton | AAPI CPV
Certified Practising Valuer

Welcome to the latest edition of the Gladstone Opteon Full Time Review. The Gladstone region has demonstrated exceptional growth, ranking in the top 1% of Australian statistical areas for price appreciation in 2024, according to the CoreLogic Hedonic Home Price Index, second only to Townsville. Notably, the market has surpassed its previous peak from 2012, marking a significant milestone.

This thriving market has attracted a diverse group of new owner-occupiers, investors, and upgraders, as well as a global workforce contributing to various projects throughout the Gladstone region. At Opteon, 2024 was an exceptionally busy year, and I would like to personally thank all our clients for their continued support.

I also extend my gratitude to the many agents, brokers, bankers, conveyancers, building and pest inspectors who have worked tirelessly to achieve these outstanding results. Your dedication has not gone unnoticed.

I am proud to play a part in the market’s resurgence and look forward to continued growth throughout 2025. In this edition, we will reflect on the record-breaking activity of the second half of 2024, providing numerous insightful data points on vacant land, strata, dwellings, resales and rents for your consideration.

If you find the content of these biannual reviews valuable, please feel free to share it with others who may benefit. You can reach out to me via email, phone call, or connect with me on LinkedIn.

LAND

A total of 95 vacant blocks of land were sold in the second half of 2024.

Up to 1,500 sqm

47 land re-sales of blocks ranging in size from 480 sqm to 1,426 sqm show sale prices ranging from $62,000 to $315,000. 

31 developer land sales of blocks ranging in size from 183 sqm to 1,065 sqm show sale prices ranging from $125,000 to $257,800. These estates include:

• Riverstone Rise, Boyne Island
• Hill Close, Clinton
• Tannum Blue, Tannum Sands
• Oasis Estate, Kirkwood
• Vantage Estate, New Auckland
• Sanctuary Hill Estate, Clinton
• The Sands Estate, Tannum Sands

In a nutshell:

• Small stages of land (<20 lots) being titled and released for sale on to the market.
• There is limited development activity of new subdivisions however some interest noted in englobo land parcels on the outskirts of Gladstone for future subdivisions.
• Increase in sale volumes since first half of 2024 by 28.4%.\
• Local owner occupiers purchasing land to build primary residences with total values broadly in the $600-800k range.
• Median value across all land sales is $160,000 (up from $137,000 or 16.8%) with a median time on market of approximately 4.5 months.
  

1,500 sqm + Rural Residential blocks

19 total. 9 re-sales and 10 developer sale of blocks ranging in size from 1,694 sqm to 37,100 sqm show sale prices ranging from $105,000 to $390,000.

STRATA – UNIT/TOWNHOUSE/APARTMENTS

The strata market has shown its strongest signs of a recovery in 12 years with prices starting to resemble some normality compared to their replacement costs. Value and affordability are represented in the segment by a median price of $316,000 which trades at a discount of 40.3% to the median price of dwellings. 

Interestingly during the prior market peak in 2012 the median for units sat at $482,500 (Dec 2012) compared to a dwelling median peak of $522,500 (Dec 2011), a discount of just 7.6%. Opportunities to buy units under $200k are drying up fast a far cry to a few years ago where over 50% of stock in the segment was priced under that point. Gladstone recorded a total of 266 strata sales in the half year. 

Strata property values have risen, driven by robust rental growth and heightened interstate investor interest in the established dwelling market having a positive flow-on effect with some investors seeking a better yield. 

Key factors influencing the strata market include:

• Transactions occurring below replacement cost.
• First home buyers entering the market particularly in smaller complexes of less than 4 units.
• Larger complexes with significant amenities such as pools starting to attract a rental premium.
• With construction costs unlikely to subside soon, limited planned developments in the strata sector and rising rents, there is potential for further price growth.
• Currently values are well below the previous market peak for strata properties from December 2012 at $482,500.
• Half-yearly median capital growth of 10.3%.
• Greater affordability compared to dwellings.
• Solid gross yields.
  

The majority of activity in this segment falls within the $200,000 to $450,000 range, with only 5% of strata properties selling above this range.

(Image Source: heraldsun.com.au) 

DWELLINGS

TheDwellings in the Gladstone market have also experienced a significant boom over the past six months, also fuelled by a surge in investor interest predominantly within the sub-$625k segment. 

Over this period interstate buyer's agents representing investors, and local owner-occupiers fiercely competed for well-positioned 4-bedroom, 2-bathroom properties as well as a series of older style 3-bedroom 1 bathroom properties. Off-market transactions have continued an upward trend. Interstate buyers have played a major role in driving the transaction volumes and contributing to positive price growth, frequently outbidding local owner-occupiers and investors. This recent growth highlights the strength of the rental market, and the affordability of the Gladstone region compared to other regional centres. 

Recent data shows a median price increase of 15.2% in the 6 months to December 2024, bringing the median price to approximately $530,000, up from $460,000 in June 2024. Sales volumes in the second half of 2024 declined by 1.8% to the first half.

Key factors shaping the Gladstone dwelling market in the second half of 2024 calendar year include:

• Strong demand for established dwellings in the sub-$625k segment, appealing to both owner-occupiers and investors due to affordability.
• Modern 4-bedroom, 2-bathroom homes and renovated older style 3 bedroom 1 bathroom homes frequently attracting multiple offers and selling quickly.
• Increased investor interest in suburbs like West Gladstone, Barney Point, New Auckland, Kirkwood, Telina, Kin Kora, and Sun Valley.
• A rise in off-market sales, particularly investor-to-investor transactions.
• Significant growth in interest of investors buying in their Self-Managed Super Funds.
• Growing interest from local owner occupier in the $625,000 + market.
• A rise in prestige property sales, with 13 transactions over $1M compared to 12 at the start of 2024. Benaraby has noticeably benefited from this increase with 4 transactions over $1M the most in the suburb’s history.
• More locals upgrading their primary residences often selling out of the sub $625k market making a strong capital gain and re-investing in the price bracket of $625-900k. Keeping the money local to the Gladstone market has been an issue in the past with many “cashing out” during strong market cycles and relocating to nearby lifestyle destinations in regional QLD such as Bundaberg, Hervey Bay or Sunshine Coast. While anecdotal there appears to be less migration from the region in this market cycle.
• Population growth rate of approximately 1% year on year contributing to market activity.
• Double-digit capital growth over the last six months.
• Stable vacancy rate at approximately 1.5%.
• Limited new dwelling construction amid a significant rise in construction costs (approximately 10% over the last six months).
• Major industry investment, particularly in the renewables sector, such as the Aldoga Solar Farm.
• Announcement of location for new swimming pool on a riverfront parcel of land at Boyne Island.
• Minimal mortgagee in possession and forced sale activity.
• Increase in auction clearance rates.
• Increase in multi-unit dwelling sales (duplexes/flats complexes) with yields tightening to the circa 6-7.5% range.
  

DWELLING RESALE DATA

The The data in table 1 illustrates resale data of dwellings in the Gladstone region which transacted in the second half of 2024 calendar year, as well as within the last 2 years to 2022. The analysis details dwelling resales within the Gladstone region* that went through a marketed arm’s length transaction. 

This is a good barometer for the market in each suburb as unlike median pricing it details the exact property and its return over the corresponding timeframe. Additionally best efforts have been made to exclude resale data of properties with major alterations such as extensions, renovations or significant ancillary added to the property.

Strong capital growth evident across this period through many different suburbs and price points within the Gladstone region. Observably the suburb of West Gladstone was particularly popular due to its proximity to amenities including the Night Owl Centre, Gladstone Hospital as well as its connectivity to the CBD.

Table 1: resale data of dwellings in the Gladstone region 

RENTS

Significant growth across the dwelling rental market with double digit growth recorded in all segments over the prior 12 months. The unit market has also reported growth albeit at a slower rate. Marginal rental increases reported since the June Quarter 2024 in most segments. The vacancy rate is hovering around the 1.5% mark slightly up from 1.1% earlier in the year. 

Currently rents are reflecting the highest median rental across the region in 11 years. The number of rental properties rose in the Gladstone region over the period due to a significant volume of transactions from owner-occupiers to investors creating an uptick in rental supply and bonds lodged. This contrasts sharply to the pre-COVID period, when a large portion of sales involved investors selling to owner-occupiers. There has been very limited supply of new housing built in the region to ease tenant demand. Notably during this period, a non-for profit organisation boosted the supply of rental stock to low income tenants through an acquisition of unit style accommodation in Barney Point that was previously utilised as a caravan park and workers accommodation. 

The general residential rental market, for units, single unit dwellings and townhouses, in Gladstone is shown in the below table 2.

Table 2: rental data in the Gladstone region (source: Residential Tenancy Authority – rta.qld.gov.au)

The foregoing figures show a strong increase in the Gladstone residential rental market over the past year, with the rental value of a benchmark four (4) bedroom dwelling up approximately 11.1% and the 2-bedroom flat up approximately 16.7% over the period. Tenant demand for these two accommodation types remains the strongest with the most bonds lodged in these segments. 

The below graph demonstrates the affordability of the Gladstone residential rental market compared to our comparably sized neighbours in Central Queensland. The differing median rents on a weekly basis for the most popular rental types in the region being 2-bedroom flats and 4-bedroom dwellings. For 2-bedroom flats we are the most affordable in line with Rockhampton which offers significantly older style accommodation in that segment. In the 4 bedroom segment we are equally priced with Emerald as the cheapest as the most affordable option, with both markets generally providing similar modern style homes.

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

Subscribe to receive the latest property insights here: