The Queensland areas where the property market is in decline
Things are starting to look up in Gladstone which could finally make its exit from the dirty dozen list. BRISBANE’S best first time investments Mr Ryder said Fortitude Valley sales were at about one-third of the levels they were at two or three years ago while West End sales had halved since 2014 and 2015.In South Brisbane sales rate were between 160 and 180 per quarter in 2013 and 2014 but in the past year have dropped to about 60 or 75 sales per quarter.He also nominated Kelvin Grove as a struggling apartment market.More from newsMould, age, not enough to stop 17 bidders fighting for this home6 hours agoBuyers ‘crazy’ not to take govt freebies, says 28-yr-old investor6 hours ago Gladstone in Central Queensland has featured in the dirty dozen list for some time but Mr Ryder believes the end is finally in sight.“We suspect this may be the last time it appears,’’ he said.“With new projects in the Gladstone pipeline (most of them not resources-related), there is hope that vacancies will fall and normal market conditions resume. In the meantime, however, vacancies remain around 6 per cent and sales rates are still very low. There will come a time when it’s good to buy in Gladstone, but not yet.’’Mount Isa, is another Queensland region where the property market has been affected by the slow down in the resources sector. SIGN up to receive all The Courier-Mail real estate news direct to your inbox Mr Ryder said it was an active market with strong rental yields and rising prices until 2013 but since then the bottom had fallen out of that market. While Mile’s is not technically a resources town, nearby gas exploration in the Surat Basin led to plenty of development in the area and now a downturn in values.In 2012 and 2013 quarterly sales regularly topped 150 a quarter but since 2014 it was consistently below 50 per quarter.In 2016 the quarterly sales rates were 40, 26, 41 and 35. Roma and Miles, in Western Queensland were not mining towns but a surge in activity with coal and coal seam gas exploration in the nearby Surat Basin area had led to development of new housing.“Developers built lots of new product in these small towns, failing to foresee the modern phenomenon of temporary workers camps. The result was the destruction of the property markets in Miles and Roma.’’Mr Ryder said the vacancy rate in Miles was now 17 per cent and Roma was about 10 per cent and only nine houses sold in 2016. QUEENSLAND has four entrants in the National Dirty Dozen of property markets in decline.And while in previous years the list has been dominated by resource towns, this time around plenty of capital city markets have made the list.Report author Terry Ryder of Hotspotting said the national list had changed in the past year and he expected it to evolve further throughout this year.It was previously dominated by resources-related areas which were struggling from the downturn in mining investment, but now capital city markets were now nudging their way onto the list – mainly because of their unit markets. HOW much is too much for borrowers? The one thing in common all the areas that made the list had was a drop in sales numbers, rising vacancy rates and, in many cases, falling prices.Mr Ryder said while those markets weren’t performing now it didn’t mean they would not recover given time.As well as resource towns, Brisbane’s inner-city unit markets made the list.My Ryder said the CBD and near-city suburbs like Fortitude Valley, Kangaroo Point, South Brisbane and West End all had vacancy rates of 5 per cent to 7 per cent at a time when there was new supply under construction.“Exacerbating the problems are declining rates of sales, when the market needs sales levels to be rising,’’ he said.