Gladstone almost out of rental space at height of mining boom

As we look to what's ahead for 2012, Property Observer is republishing some of our most noteworthy stories of 2011.

There is almost no rental accommodation available in the resource boom town of Gladstone, according to quarterly Real Estate Institute of Queensland figures.

Vacancies in Gladstone, 550 kilometres north of Brisbane, have fallen from 1.4% to just 0.6% in the June quarter on the back of big energy, mining and infrastructure projects scheduled to commence in the region over the next 10 years.

In March 2009 the Gladstone vacancy rate stood at 6.1%

The regional town’s property market is now the focus of significant residential development, with Devine receiving approval to rezone a 469-hectare site from farming to residential. 

Devine plans to develop up to 2,900 homes and other facilities for a community of 7.500 people as part of a new $1.4 billion community. Construction is due to begin in 2012.

A search across realestate.com.au reveals just 84 Gladstone properties for lease.

Kellie McDonald from Raine and Horne Gladstone is offering a three-bedroom house on Stoneybrook Drive for $500 per week.

RE/MAX Gold – Gladstone is offering a partially furnished two-bedroom flat on Illawarra Drive for rent at $300 per week.

Vacancy rates:

Source: REIQ

Resource projects earmarked for Gladstone include a $41 billion coal mining project scheduled from 2011 to 2020, a $75 billion energy project scheduled from 2011 to 2017, a $7 billion rail project (2011 to 2014) and an $8 billion port project (2011 to 2020).

Based on March Real Estate Institute statistics, Gladstone’s vacancy rate is lower than that of Sydney (1.1%), Brisbane (1.8%) and Melbourne (1.7%).

While vacancies have eased slightly in Mackay from 1.3% to 1.6% and from 1.8% to 2% in Rockhampton, they are still significantly tighter rental markets than the Brisbane metropolitan market, where vacancies have eased from 2.3% to 2.7% over the quarter.

According to the REIQ, the regional areas have continued to experience extremely tight rental conditions as the influx of residents who have obtained work in the resources sector places increasing pressure on the supply of rental properties.

“This is being reflected in the RTA rents, with the highest increases in median rents occurring in areas such as Gladstone, Mackay, Rockhampton and other smaller regional areas like Central Highlands, Isaac and Banana,” says REIQ managing director Dan Molloy.

According to the Midwood report, property developer Devine will next year commence building a $1.4 billion master planned community just outside of the Gladstone CBD.

The 496-hectare site, to be developed over the next 12 years, will include 2,900 dwellings for up to 7,500 residents, an education campus, a mixed-use commercial zone and 182 hectares of open space.

Photo courtesy of Tourism Queensland