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Mackay or Gladstone

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| 19 Mar 2012, 08:20 PM Agree 0
Hi There,

First time posting but I do own a couple of investment properties already. Ive been eyeing off the Gladstone & Mackay area for my next purchase and was wanting people's thoughts on these 2 areas? Mackay looks like a suburb on the up given the mining activity and infrastrucutre already established but Im interested on people's thought on Gladstone. There a few posts on here already about Gladstone but even though Gladstone has had a mini boom in the past 3 years I can see this increasing further in the coming years. You cannot go past $70B in gas & mining projects and it is still relatively cheap when I look at WA.

Would appreciate any comments on this.

  • Doug - First Property | 21 Mar 2012, 08:55 AM Agree 0
    Hi Sydinvestor, we market investment properties across Australia, and I can say from our national research that Gladstone is the key investment area we are promoting and our most savvy investors are buying in.

    Port Hedland etc is the area providing decent rental yields ($1.1m properties renting for $2,200 per week), but its our opinion that it has had its 10+ years of capital growth (20% pa average), causing medians to be rather high. You don't want to help someone realize their capital gain buy buying their capital growth?

    Gladstone in comparison as you mentioned is lower priced, lower medians and decent rental returns ($560k properties renting for $800+ per week), with room for capital growth and rents predicted to grow substantially (4 bed median rents grew 60.7% in the year to Dec 2011). Yet the property prices have yet to gather pace, although some areas we are promoting grew 25% last year!

    Drop me an email and I can supply you with our Gladstone Investment Report giving you some more research to help make your choice.
  • Generation M&P | 22 Mar 2012, 04:00 AM Agree 0

    Both Mackay and Gladstone are good options with excellent rental returns.

    The only real difference I believe is the entry point.

    A new 4 bedroom, double garage will cost you

    Mackay - $480,000
    Gladstone - $535,000

    Rents in Mackay will get you $550-$600 and Gladstone will return $700 - $750

  • Doug - First Property | 26 Mar 2012, 02:38 AM Agree 0
    @Generation M&P, I agree with most of your comments. There are similarities in returns and products being offered, but there are some key differences in Investment Market conditions.

    The key to investing in mining areas is that as an investor you are exposed to the resource being mined or processed. We educate our investors (amongst other points) to look in an area with 2 or more key resources being mined or processed and 2 or more large companies mining or processing each resource. The more the better.

    On this point there is a major difference in the resource with Gladstone (LNG, Alumina, Coal, Nickel and Cement) and MacKay (Coal and Sugar). This is without going into details of the differences in infrastructure spend committed, project timings, required workers effect on local property demand or the position of the property cycle between the 2 areas, in which we believe Gladstone again would be the single preferred investment location.

    We are in now way suggesting Mackay isnt a good location, not will it perform for the future. We only identifying the facts.

    Thanks goes out to all readers for their requests for our Gladstone Investment Report. I hope you enjoyed reading the content as some of you have advised us.
  • camjanice | 29 Mar 2012, 01:05 AM Agree 0
    I would go Mackay. Gladstone is more expensive and the vacancy rates have increased lately. Mackay is really tightening with vacancies. My 4 x 2, that is almost complete, is expected to receive $700 pw rent, up from $530 pw 6 months ago. Cheaper entry price means more room for capital growth in my opinion. I have a property at both Gladstone and Mackay by the way.
  • Doug - First Property | 29 Mar 2012, 06:10 AM Agree 0
    Hi @Camjanice,

    Well done on owning property in both locations. ;)

    According to SQM the Vacancy rate in Gladstone for Feb 2012 is 0.9% compared to 0.6% in Jan 2012. For the same period the Vacancy rate in Mackay for Feb 2012 is 0.7% compared to 0.6% in Jan 2012. Also increasing and not tightening like you suggest.

    So I guess in theory you are correct. But a Vacancy of 0.9 is pretty good considering every property (new or old, good and bad) is included in the equation. The vacancy would be much lower for the more desirable properties new and good), and the trend more than likely won't continue to increase during 2012.

    Your 4x2 which I'm sure you purchased in a great area, has had according to you a 32% rental increase for the 6 month period you mentioned. 4x2 median rents for Gladstone (all properties) grew 57.5% for the 2011 year.

    Rental yields are just one aspect to consider. Potential for capital growth would be on our highest recommendations. Here are some others stats for the readers consideration, with the Gladstone Dec 2011 stat mentioned first and (Mackay) in brackets thanks to no table formatting in the forum:

    YOY Growth: 12.6% (-2.67%)
    5YOY Growth: 15.0% (4.29%)

    Median House Price: $450,000 ($365,000)

    # of Sales year 2011: 1257 (42)
    Days on market: 96 (119)

    Current Population: 30,489 (3,813)
    Key Resource (mined or processed): LNG, Alumina, Coal, Nickel and Cement (Coal and Sugar)

    Again we do not favor Mackay or Gladstone. We just research and try to interpret the stats and trends. Let me know if I can email you our report?
  • Doug - First Property | 29 Mar 2012, 06:45 AM Agree 0
    Take a look back in time?

    Here is an interesting article by YMM about Gladstone and the LNG storey written back in 2010:

    The storey back then was good, but on the back end of the GFC there was good reason to be cautious. We have been watching everything unfold as have others, but its so strange to remember median prices back then of $250k, with good investments at $350k. When now the median is $450k, with good investments around $550k. A $200k difference in 2 years!

    And to see the excitement in the area even though the LNG projects still required environmental sign off.
  • camjanice | 29 Mar 2012, 08:39 AM Agree 0
    Hi Doug, the stats you show don't seem correct. The city of Mackay has a population of around 85,000+ so I think the stats are just indicative of perhaps Mackay city central? Mackay has not had the growth of Gladstone, for sure, but perhaps that is an indicator that it needs to catch up! Past history is not always a good indicator of future performance. Mackay is certainly in the early stages of rising in value from the bottom of the cycle, Gladstone is well and truly on the rise. Personally I like to buy near the bottom of the cycle so as to increase my chance of getting good capital growth. I personally feel Gladstone has risen in value too much for me to be sure there will be much more growth. If vacancies are easing up and there is certainly a lot of development going on, then I will be concerned that there will be too much product on the market in the future. Just my 2c worth but I am no expert. I certainly hope both Mackay and Gladstone perform well, having bought in both palces, and they might both just do that!



  • Doug - First Property | 29 Mar 2012, 11:01 AM Agree 0
    Hi Janice, the Mackay LGA population is 85,000 plus and the price stats provided are median and relate to the full postcode.

    You have some key points that are important, but maybe your interpretation could be improved.

    I'd be happy to discuss every point if you like? Just send me an email and I'll reply.

    One point I'd like to explore is your suggestion that Gladstone may be at a non suitable position in its property cycle. Mining boom towns don't really follow the standard property cycle as shown by what happened in Port Hedland over the last 15 years. Port Hedland has grown 20%+ per year for the last 10 years! Starting at prices similar to Gladstone 2 years ago.

    Gladstone has amazing similarities to Port Hedland as a mining boom town. One key difference is that PH has restricted land supply. Gladstone has area available for future development, but last year there were only 800 or so dwelling approvals, from 567 the year before. With 4,500 perminant LNG workers required becoming residents over the next 4 years, the demand in Gladstone will continue to be strong, far out weighing the property supply concerns you mentioned. Even if the council approved 2,000 dwellings, could the local builders actually finish 2,000 per year? Unlikely, but not through effort (don't want to upset our builders here). :)

    Can Gladstone achieve prices of $1million. Let's see. But they didn't believe it was possible in Port Hedland and now the median price is $1.1m +.

    I haven't invested in Mackay because of the 5 year growth average of 4.69% per year and no major reason it should improve other than the notion Australia's long term conservative average growth is 7%. If you were investing in an area because you beloved it was near the bottom you would look for a much lower 5 year growth average, even negative. Then this would allow you to benefit from its correction back to the long term average. If the long term average is 7% and Mackay was 4.69% then the difference is your potential. Not the ideal concept in my opinion, but a more clearer explanation of the concept you introduced.

    No one is an expert of any market, but they can research, monitor and provide comment. Most of these commentators have Gladstone on there lists.
  • camjanice | 29 Mar 2012, 03:47 PM Agree 0
    Hi Doug, yes I would love a copy of your Gladstone report. Please forward to

    Another thing I like about Mackay is that it appears a lot of mining staff are moving into Mackay for the beach lifestyle and flying into the inland mines for work. I this trend will help increase the demand for accomodation in Mackay in the long run. One concern I have about Gladstone is the peak construction workforce being in 2013 with a big drop off after this year with only a much lower operational workforce after this date. The figures may have changed but this is what I have in a report from May 2010 so may be well out of date. However, I am a big fan of Terry Ryder from and he recommends Gladstone as a place to invest.
    In regards to matching Port Hedland's growth I think this is not likely. The prices in port hedland reflect the huge demand/limited supply as you mentioned (limited land availability) as well as the cost to build in our neck of the woods. I live in the Pilbara and it costs $500,000 to build a house which would cost $300,000 or less to build over east.

    However, no one really knows what is going to happen so my recommendation woudl be to cover all bases, yet spread the risk, by investing in both Mackay and Gladstone!Great support towns to the mining industry without the risk of the smaller mining towns that rely solely on mining. I think the biggest risk to these small mining towns is fly in fly out workers.

    For those who are interested, I have been witnessing first hand the growth in mining in the Pilbara. We live in the middle of nowhere yet I have noticed mines popping up quickly where there were none before. Driving down a gravel road the other day and came across a set of traffic lights to a mine...crazy. All of the new mines are fly in fly out (with management often living locally) which works fine as they are so isolated so they build purpose made camps of dongas, swimming pools, gyms, mess halls, tennis courts etc. Miners buy 4WD's, boats, quad bikes, metal detectors and motorbikes as entertainment. It is very much the way mines operate here, fly in fly out, and it works here and could possibly become a more common way of doing mining in QLD, although there seems to be a lot of resistance to FIFO in QLD. So the effect of housing here in WA???? I can only imagine that the increased no. of FIFO workers in the Pilbara will help fix the oversupply of housing in Perth. Perhaps it will be Perth's time for growth in the years ahead???

    That is my 2c I said I am no expert but these are just observations I have made.
  • Doug - First Property | 29 Mar 2012, 10:51 PM Agree 0
    Hi Janice,

    I have just emailed you our report. The figures in the report are the most current in the market.

    The peak construction workforce for Gladstone in current LNG projects alone is 18,000 workers 2012-2015 (Gladstone Economic and Industry Development Board). The 4,500 I mentioned previously were the operational workers required. The ones who will become Gladstone residents. We don't put the construction workforce demands in our scenarios, because they could be fly in fly out (FIFO), and are only temporary. Construction workers have a large effect on the rental demand, with some effect on the growth as some workers buying to live, and then turning their property into investment after they leave.

    Operational workers however have a direct effect on rental demand and property values. 4,500 workers and only 800 being built per year. The math is good. In a recent Matusik report they mention if dwelling approvals don't improve in Gladstone there will be a shortfall of 44,937 dwellings over the next 20 years!

    With regard to Port Hedland, we have some relationships with the guys at Crawford Realty, but feel the next 10 years cant be the same as the last due to high entry levels. Its a great place for pure cash flow as part of a balanced portfolio. As well as being a Perth resident with our head office here, half of my mates are the ones you describe buying toys and wasting their cash. ;)

    Take a look at this Feb 19th article describing how WA miners are investing in Gladstone because they have seen first hand the effect of mining town workers demand on property prices:

    West Australian miners snap up Gladstone investment properties

    You can read they also mention Mackay with workers relocating their families to the coast.

    Let me know what you think about the report. The response has been good to date. ;)
  • camjanice | 31 Mar 2012, 05:39 AM Agree 0
    Hi Doug, the report was very good thanks, and is definately an update on my old report which only had 8000 people coming in for construction phase and now this is up to 18,000. Gives me reassurance that I have made the right move investing in Gladstone and certainly paints a picture that there is definately still capital growth to be had.

    Yes, I had heard from real estate agents that a lot of the investment in QLD real estate is from WA investors. I guess many of us have witnessed huge growth first hand so we know a good thing when we see it. Go QLD!!!


  • new_investor | 31 Mar 2012, 10:26 PM Agree 0
    Hi Doug,
    could you please send me a report, too?
    Thanks heaps! Our email is
    We just signed the contract for the new house&land package in Calliope? What is your opinion about the area?
  • Doug - First Property | 02 Apr 2012, 03:54 AM Agree 0
    Hi new_investor,

    Congrats on the investment in this region.

    Calliope, Tannum Sands, Boyne Island and all the surrounding investment areas are benefiting from the LNG story hitting the area but being published for Gladstone. The numbers stack up well for these close proximity areas as workers and residents move outside of Gladstone due to increasing prices. If you buy well within the area you should be fine.

    The main difference between Gladstone and the surrounding areas is the notion to try to be as close to the center of what is driving demand as possible. We have seen that positive market conditions will effect the trends for key area first, have the most positive effect on capital growth and rental growth and have the effects last the longest within the key area. The surrounding areas will have a flow on effect later than the key area, and if demand does eventually slow, it would normally slow in the surrounding areas first, and the key area last. We have experienced this in other markets.

    Being closer to the action is more of an opinion and not an exact science, so please treat it that way. ;)
  • NickZed | 04 Apr 2012, 08:34 AM Agree 0
    Hi Doug,
    I was wondering if I would be able to get a copy of your latest Gladstone report - if thats convenient.

    My email address is
    thanks and regards
  • Doug - First Property | 07 Apr 2012, 02:09 AM Agree 0
    Hi Nick,

    will email you a copy of our report now mate. Apologies for the delayed reply. One of those busy weeks.

  • Craigjenko | 07 Apr 2012, 08:51 AM Agree 0
    Hi Doug,
    Could you please send me a copy of your gladstone report too.
  • DanLuc | 07 Apr 2012, 02:04 PM Agree 0
    Hi Doug,

    My partner and I have moved over from NZ and have been based in Port Hedland for six months now and have seen the effects (limited due to our short time here) that mining booms have on Australian towns.

    Trying to research and plan as much as possible before investing into our first property in Australia, we like many others, have found that Gladstone is in for a very positive future.

    Trying to make hay while the sun is shining, we have just put a refundable deposit on a house and land package in Stage 1 of the Forest Springs development. Upon further research I have noticed that there is a lot of opinion in regards to 2015 when construction stops/slows.

    However, I was pleased to read a potential 45000 shortfall of dwellings in 20years. (can't beat facts and figures). I would like to get your opinion about the investors getting in the Gladstone market now as I have often hear "the Gladstone ship has already sailed, you should be looking at Mackay". Also if you,members or locals have any inside knowledge of importance on the Forest Springs development just out of Telina.

    Could we also get a copy of the report.
    Thanks very much for your time.

  • AuPropertySpectator | 09 Apr 2012, 11:42 AM Agree 0

    I think as long as the fundamentals stack up, in any mining or resources-based town, then it is a sound investment.
    Whilst I don't currently hold property in a resources-driven town (My strategy so far has been inner-CBD in large cities), I am certainly exploring this.

    I'd love a copy of the report too, my email address is:

    Also, on my blog, I'm running a quick 2-minute survey, with your chance to win prizes. Enter here, if you're able:

    The survey expires Wednesday April 11th 2012.

    Cameron McEvoy,
    Property Spectator Australia
  • Doug - First Property | 10 Apr 2012, 02:28 AM Agree 0
    Hi Craig and Cameron,

    I have just emailed you a copy of the report.

    DanLuc, drop me an email an I will forward you the report.

    Dan, if you email the details of your investment I can give you my more detailed opinion of your investment, but the fact you are in Gladstone you should be fine. I have invested in one of our Glen Eden Estate packages, 4x2, 1,144 m2 block with ocean views to attract a premium rental income. It will be cash flow positive pre-tax.

    With regard to your comments about 2015, the very simple answer is that the majority of the 18,000 construction phase workers may have come and gone. Some, if they're smart may have invested in the area, and some will move on looking for the next $2,000 per week paying employment if they don't find an operational job in Gladstone.

    We don't put any emphasis on these construction numbers in our scenarios or decisions. These temporary workers will have a strong effect on the demand for rental properties, increasing the possible rental income for each investment. But with keeping our philosophy of investing for capital growth, we look to the 4,500 operational jobs required in Gladstone. These are permanent positions the $77 billion in infrastructure projects are generating. These numbers will directly effect the demand and future potential for capital growth in the area.

    I would suggest to get a clear understanding of what the Mackay comments are before concerning yourselves with your decision. The whole region has benefits and risks based on the mining story. Each investor will have their opinion based on what they hear or have researched. But when you come down to the level of which is better, you may be talking about a difference in a % of growth, or a small difference in gain compared to the other locations in the area.

    Some will say the other areas have a lower purchase price, therefore a higher potential for capital gain. This can be true, but you would need to look at the rental income being achieved. The cheapest purchase price doesn't always reflect the cheapest property to service. On top of that if the whole region grew at 7% pa, wouldn't you prefer 7% of $550k than 7% of $350k?

    There is no exact science on investing which is great, because if there were, property professionals like ourselves would be out of work. ;)

    I will continue to monitor the market, and invest there as long as my extensive research, gut feeling and lenders allow me to.

  • Doug - First Property | 10 Apr 2012, 11:04 PM Agree 0
    Hi All,

    I just thought I would post an update regarding the Qld Building Boost as the general consensus is that Cambell Newman will not extend it past the current deadline. I read that he voted against it being extended in the first place.

    If you are looking to invest in Gladstone or Qld, I would suggest taking advantage of the $10,000 Qld Building Boost which ends 30th April.

    The $10,000 would go a long way to helping with your deposit. Or like most of our investors using current equity to invest further, it can represent $192 per week for your cash flow in year 1.

    For clarity, you just need to have an executed land and build contract in place before this date to be able to apply. Meaning your finance, deposits, build and settlement can be after this date.

    If you have any questions let me know.
  • Doug - First Property | 18 Apr 2012, 11:39 AM Agree 0
    Hi all,

    Another nomination for Gladstone tipped as the country’s number one hotspot for the sixth quarter running by the NAB's Quarterly Australian Residential Property Survey: March 2012.

    Our investors just love reading these media articles. Also nice to see Mackay nominated.

    Here was on from Terry Ryder outlining some interesting facts on Gladstone:

  • Doug - First Property | 21 May 2012, 07:06 AM Agree 0

    I thought I would update those interested in the construction projects going on in Gladstone. A recent news article dated 18th May with current updates:

    All ticking along nicely. The demand for Gladstone from our investors still remains strong despite the Qld Building Boost ending 1st May.

    My investment in Gladstone will start building soon. Happy times.
  • Bennett | 04 Jun 2012, 11:16 AM Agree 0
    The important thing to investing in mining areas is that as an investor you are uncovered to the useful resource being mined or processed. We educate our buyers (amongst different points) to look in an space with 2 or extra key sources being mined or processed and a pair of or extra massive corporations mining or processing every useful resource. The extra the higher.

    Port Hedland and many others is the realm offering first rate rental yields ($1. 1m properties renting for $2,200 per week), however its our opinion that it has had its 10+ years of capital progress (20% pa average), inflicting medians to be moderately excessive. You don't need to assist somebody notice their capital acquire purchase purchaseing their capital progress.

    In accordance to SQM the emptiness charge in Gladstone for Feb 2012 is 0. ninth in contrast to 0. sixth in Jan 2012. for a similar interval the emptiness charge in Mackay for Feb 2012 is 0. seventh in contrast to 0. sixth in Jan 2012. additionally rising and never tightening such as you recommend.

    So i assume in principle you are appropriate. however a emptiness of 0. 9 is fairly good contemplating each property (new or old, good and bad) is included within the equation. The emptiness can be a lot decrease for the extra fascinating properties new and good), and the pattern extra than doubtless won't proceed to extend throughout 2012.
  • newtoitall | 11 Jun 2012, 03:35 AM Agree 0
    Hi, I've just secured a block in Gladstone and have two options - to build a 4 x 2 house and furnish it for a higher rental yield, or to build a 4 bedroom house each with ensuite and rent out room by room. Not sure which way to go. Looking at the big picture - rents more affordable at $200-$250 per week per bedroom as opposed to $1K per week for one family, but if I decided to sell down the track it probably would be easier to sell a 'normal' house. Does anyone know which would rent out easier and be more secure?
  • Myproperty | 12 Jun 2012, 10:19 AM Agree 0
    Interesting to see the various comments going back a few months now and wonder as to current views.

    Owning rental investments in South Hedland and Gladstone we have a reasonable view of both. We were surprised with a $600 a week rental increase agreed in December in South Hedland. Chatting with agents at this time the increase did not lift the capital value with some returns drifting out in the region of 12-14 per cent. During the past few weeks I think I have noticed yields have hardened with properties being offered in the region of 10-12 per cent. This may continue with the reduction of interest rates and announcements of further infrastructure spending in the area. Although we are invested there, I regard the property market as dysfunctional, due to the very peculiar market conditions.

    Gladstone has shown considerable growth until the end of last year and both rental and capital values have been languishing for about 7 months - could this be the time to buy? I’m told currently most sales are house and land packages. This would not be my preferred option as in my experience they are generally further out of town with a developers profit built into the asking price and mostly on smaller blocks. I would much prefer to buy a property in a more established area with good transport, schools, hospitals, shopping and entertainment. The ideal house would be a few years old with plenty of tax depreciation available, attractive to tenants and with the potential of a referb in a few years to lift the rental and property value.


    MyProp Mentor Me!™
  • Doug - First Property | 06 Jul 2012, 12:58 AM Agree 0
    Hi newtoitall,

    Drop me an email and I have a full rental options report that shows which configuration would has the strongest demand and can achieve the best yields for your pending decision. Assuming you havent mad it already noted the date of your post, and my time away from the forum.

    Briefly speaking, you need to way up the burden of dealing with 3-4 individual tenants as opposed to one family. There is demand for single families with accommodation budgets coming soon. The other thought you have is resale value of a 4x2 compared to a 4x4. Generally speaking using our experience up in Port Headland etc, if your strategy is to go for capital gain over cashflow (which is the play for Gladstone), try to lean the balance more towards what will make your property the highest value in 10 years. 4x2 rents will continue to grow in good numbers.

    I know for my property I prefer slightly lower rent, but a nice family that will look after my place and keep its value, over 4 guys partying every night when they finish their shift (no disrespect to partying). Additionally the current achievable rents can make the properties cashflow positive, so its not like you searching for higher rents so you dont have to cover the finacne and expenses shortfall.

    I plan to answer a few other members queries in here over the next few days. We have been very busy dealing with investors for the area and I have had to help out with sales.


  • APWPG | 29 Jul 2012, 06:08 AM Agree 0
    Hi Guys ,both Mackay and Gladstone are still good but if you need mining property report for both towns then ,let me know Cheers
  • OZ Investor | 31 Aug 2012, 08:37 AM Agree 0
    Hi Doug & others. I work in the property/lending industry myself and have been watching Gladstone closely. So closely that I have a contract for a 4 bedroom house on my desk. I havent yet exchanged as I am becoming more hesitant on Gladstone and its prospects. Yesterday I read the following artcile from HTW valuers August monthly report. Some interesting insights into Gladstone. Would love your thoughts on this as capital growth is all about demand and supply and the restriction on land supply/development and going on this article it seems demand may waiver given future housing stock/developments coming onto the Gladstone market:

    "It is very difficult to gauge where the Gladstone
    residential market is heading. After approximately 12
    months of strong capital growth and high rental returns,
    market activity began to soften in November 2011. More
    recent market transactions have indicated a decline in
    market values. Our enquiries with several local agents
    indicate that listing prices have dropped by as much as
    20% with around 5% drop in actual selling prices. With
    the ever increasing amount of competition coming onto
    the market, we consider that further market correction
    may occur.
    As discussed in previous editions of the Month in Review,
    one of the main influences over the market were the
    number of workers required to construct the LNG plants
    and other major projects being developed in Gladstone.
    According to recent data, the peak workforce of around
    8,000 workers is expected around the end of 2013/early
    Approximately 5,300 fly-in fly-out workers will eventually
    be housed on Curtis Island in workers camps. These camps
    are being built progressively. A further approximately
    3,800 rooms are planned on the mainland (number of
    persons unknown).
    The number of people in fully operational workers camps
    will relieve significant stress off the Gladstone rental
    market. This has already been displayed in some cases.
    Recently Bechtel (major construction company building
    the gas plants) reportedly handed back 125 rental houses
    and units to the rental market, temporarily flooding
    the rental market. Agents are reporting that rents have
    stabilised and that vacancy rates have increased slightly.
    Furthermore, a local inner city motelier has advised that
    occupancy rates have dropped by approximately 30%
    on the back of more and more workers being housed in
    camps on Curtis Island.
    Other than workers accommodation camps we are aware
    of the following proposed accommodation in Gladstone:
    • In the order of 1,061 allotments are currently under
    construction or close to construction.
    • Approximately 120 units currently under construction
    in Gladstone. A further 849 units have development
    approval from Gladstone Regional Council but have
    not yet commenced construction.
    • A new 60 room motel (Mercure) adjoining Yarralla
    Sports Club on O’Connell Street, Barney Point is
    nearing completion.

    The above indicates a huge supply of accommodation
    which will be bought to fruition over the next couple of
    years to combat the accommodation demand for workers
    in relation to major industrial projects in Gladstone.
    This stock if not absorbed by the market, will potentially
    result in price discounting for end lots/houses/units and
    in turn impact upon the value of development sites.
    At this stage it is difficult to predict the affect on the
    market moving forward, however we believe that there
    are increased market risks at this stage of the property
    cycle for Gladstone and purchasers should be acting with
  • Amanda | 27 Feb 2013, 08:17 PM Agree 0
    Hi Doug,
    I was wondering if you could also please email me the Gladstone report, as I was tossing up between Gladstone and mackay and I have just bought in Dalby also, hope this was the right choice. My email is
    Thanks Amanda
  • Charlie | 03 Mar 2013, 10:32 AM Agree 0
    Hi Doug, kindly e mail me the latest report on gladstone. Do you think there is still room for good growth for a house and land package 4x2 of 485,000 in Oasis estate (Kirkwood?) and is 550-650/week rent realistic over a prolonged period of time?
  • Charlie | 03 Mar 2013, 10:35 AM Agree 0
    Hi Doug, kindly e mail me the latest report on gladstone. Do you think there is still room for good growth for a house and land package 4x2 of 485,000 in Oasis estate (Kirkwood?) and is 550-650/week rent realistic over a prolonged period of time?
  • Doug - First Property | 05 Mar 2013, 01:53 PM Agree 0
    Hi Amanda and Charlie, apologies for late reply. The new Forum style doesnt notify us any more on replies to posts we make as members.

    I will email you the report now.

    I will also add that we still favor Gladstone as a solid investment location, even though there has been decent growth over the last 2 years. The growth fundamentals are still present, and the positive effects on the property values are still at the beginning of a long cycle.

    As an investor personally in Gladstone, I am excited to see the effects of the Permanent workers arriving early 2014 with career jobs on our values.

    I would be happy to discuss it further in detail.

  • Doug - First Property | 05 Mar 2013, 01:55 PM Agree 0
    Hi Amanda and Charlie, apologies for late reply. The new Forum style doesn't notify us any more on replies to posts we make as members.

    I will email you the report now.

    I will also add that we still favor Gladstone as a solid investment location, even though there has been decent growth over the last 2 years. The growth fundamentals are still present, and the positive effects on the property values are still at the beginning of a long cycle.

    As an investor personally in Gladstone, I am excited to see the effects of the Permanent workers arriving early 2014 with career jobs on our values.

    I would be happy to discuss it further in detail.

  • Groover | 14 Mar 2013, 04:50 PM Agree 0
    hi all - well yep i concur with all the above and. Im also looking at COLLINSVILLE atm - inland of BOWEN. GINA REINHART and her indian partners GVK (rail contracts and infrastructure to the ABBOT POINT PORTS, Collinsville is certain will get picked up in the wave. this is on top of the new mines starting there and $10miliion upgrade to its hospital. Ita going to be another Moranbah, houses appear undervalued now, but im sure that wont last long.. cheers
  • Craigjenko | 24 Mar 2013, 08:15 AM Agree 0
    Hi Doug,
    Just wondering if you have an update on how Gladstone is traveling? How is it going compared to the report?
  • Tania | 03 Apr 2013, 08:52 PM Agree 0
    Hi Doug,

    Can you please email me the latest report on Gladstone. I am looking to invest now. Do you suggest
    Off the plan 4 bedroom house (which builders have good reputations in the area) or and existing property close to the cbd? Does south or west gladstone matter?
  • Peter | 04 Apr 2013, 08:53 PM Agree 0
    Hi Doug
    I would also like a copy of any recent reports covering Gladstone and surrounds. I am an investor in the Calliope region and have been somewhat affected by the handing back of our property from Bechtel. These hiccups will occur from time to time and do impinge on cash flow but in the scheme of things we have had a pretty good 18 months or so! Any info is good info to the discerning investor!
  • Peter Chun | 05 Apr 2013, 05:05 AM Agree 0
    If a higher yield and greater growth is what your property portfolio requires, these 2 areas are worth a definite look. I have been involved in a couple of developments in both Mackay and Gladstone and the returns have been very good. The global demand on energy is increasing, not decreasing, which will ensure sustainability in these 2 areas for the longer term. To learn more about Gladstone and areas with similar opportunity, visit my site, Zenith Property Consulting.
  • Michael Crossley | 14 Apr 2013, 08:35 AM Agree 0
    Hi Doug,

    Can you please email me a copy of Gladstone report

    Many thanks
  • GDB Neutral bay | 24 Apr 2013, 11:24 AM Agree 0
    I am reading the comments about Gladstone.
    Having recently purchased a new property for our SMSF in Gladstone we would like to share our experience.

    This is not out 1st time investment so we have some experience in what we went into.

    The reports in 2012 list high rent yields with rental vacancy of less than 1%, Capital and work force increases expected by energy exploration growth.

    So we are now one of 400 property owners with no tenants with another 80 new units to be released with in weeks.
    Our property like so many are now listed at sub 10% to secure a tenant.


    Well the mining company's have established 4 star camps for there work force and I mean 4 star at a lower cost to them and their workers.

    Something that was known early 2012 but not in any ones investment report that we have seen to date. Other then the Normal risks etc.

    So beware, as Gladstone high rental bubble has definitely burst with no expected up side for the next 2 - 3 years.

    So if you join us as being one of some 500 property owners expecting to have high returns well gain some thought in that you are not alone.

    Invest else where is our advise and give Gladstone a wide berth.

    Don't believe us?
    Then search on rental properties available in Gladstone.

    We rest our case.

    Wonder if this will ever be listed publicly?

  • Ange | 20 Jul 2013, 03:51 PM Agree 0
    Hi folks, Ange from Integrity Investment Properties here. We actually did a webinar on Gladstone about a month ago, and got a lot of positive feedback. Feel free to watch the recording here:

    Let me know what you think, and feel free to contact our office on 1300 372 677 if you want any Qs answered.


  • Property Analyst | 19 Aug 2013, 04:36 PM Agree 0
    Unfortunately GDB Neutral Bay is spot on. The rental vacancy rate has blown out to 5% for houses and 7% for Apartments with more than the 70 stated above to come online within the next 12-18 months.

    Rents have come back by over $150 per week from the peak at the top end. The RTA suggests $80/week on average for a four bedroom house. Investment marketers have oversupplied the market. There are over 9,000 men working on Curtis Island, 50% of which have workers accommodation. Most of these have come out of the local the maths. Many Gladstone properties are now back to their pre-gas prices. So not only have many investors taken a hit on their rental yields, they have taken a bath on their capital values as well.

    Mackay is hardly any better. There are estates that solely being marketed by investment marketers. A recent drive around one of those estates had a 26% vacancy rate yet the developer continued to build the next two stages because they could sell the property, not because there was a demand. Unfortunately this experience is replicated over so many Queensland regional centres.

    My word of caution to all of you investors out there. If a local agent isn't involved or there isn't a sales office on site, your bells should be starting to ring. If you are having to pay commissions in excess of 5% you are twice the reiq commission. If you're going to a seminar, chances are there are a flock of wood ducks there with you. Be very wary of accountants selling you property. I wouldn't go to a property expert looking for accounting advice, don't go to accountants looking to tip you into property. They are part of the investment community, many with their own interest at heart, rather than yours.

    There are some good investor networks out there that are genuinely concerned with your financial welfare. HOWEVER there are so many grubs out there that have no investment grade qualification nor do they have interest in you personally.

    I am really sorry to hear that so many people have been tipped into properties in remote and regional locations that both the buyer and seller have never stepped foot in. A plane fare is bugger all these days, for your own sakes, please take the time to go and look before you burn the equity in your own home or other investment portfolio.

    Best of luck.
  • Eos Property | 23 Aug 2013, 02:44 PM Agree 0
    Herron, Todd White recently reviewed Gladstone Market.

    There comments below from today's Property Observor ""The Gladstone residential market continues to ease with declining prices still evident which have been decreasing since November 2011. This has been seen across all residential market sectors including vacant land, residential units and dwellings," the report says.

    "From October 2010 to November 2011 Gladstone and surrounding areas had experienced strong growth in the residential property sector. This was due to strong investor sentiment after the announcement of the EIS approvals for three LNG projects in Gladstone.

    The construction workforce required for completion of these projects is currently at peak levels.

    Subsequently the demand for accommodation has eased significantly with supply currently outweighing demand in the residential property sector. This is putting downward pressure on prices while supply is continuing to increase.

    Local buyers are coming back into the market as prices are decreasing and becoming more affordable.

    "The buyers are first home owners as well as home owners upgrading. Interstate investors are still active however, interest has slowed significantly. There is potential for further market correction while supply is increasing in the proposed new product which will continue for at least another 12 months."

    Hope this helps some people with their decision making.
  • Mark | 27 Aug 2013, 03:42 AM Agree 0
    Hi Doug could I also have an update report on Gladstone and surrounds

  • Manish | 20 Oct 2013, 05:04 PM Agree 0
    Hi Doug,
    Can you please email me your latest Gladstone surronds property report?
    We are looking to invest in Hill Close Estate, Auckland (near dawson Hwy).....would welcome any feedback on the market conditions or any info from the forum participants
  • Valerie Tipping | 29 Oct 2013, 09:39 PM Agree 0

    What would an investment be like in Mango Hill Brisbane and Brendale. Is it a waste of time investing there.
  • FrankieG | 31 Oct 2013, 10:54 AM Agree 0
    Hi, We have an investment property in Mackay and another in Airlie Beach. Mackay suffered a downturn 6 months ago when mining contracts were not renewed and 5,000 lost their jobs. In turn, they moved elsewhere. You could not get tenants except by offering deals. We drop our rent by $120 per week and fluked tenants. In Airlie Beach we retained our tenants because they have local jobs not dependant on the mines. Both locations are in a depressed market and sales are in a slump. Now is the time to buy but who knows when rentals will pick up. Wanna buy a house?
    Cheers and good luck17318
  • Testing | 20 May 2014, 12:20 AM Agree 0
    Unable to reply, testing pls. sorry
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