Auctions are going crazy at the moment - Auctioneer Andrew Allen.
Auctions are going crazy at the moment - Auctioneer Andrew Allen. Mike Richards GLA080617SOLD

The surprising change to Gladstone's property market

AUCTION clearance rates in Gladstone are the highest in five years, in a refreshing sign for the region's property market.

In the past six weeks, two out of four auctions in Gladstone have resulted in a sale on the day or four weeks after.

In comparison, the average of auction clearances in Gladstone for the past four years has been about one in five properties.

It's a figure that Ray White Gladstone director Andrew Allen said proved confidence was returning to Gladstone's property market.

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Since Easter Mr Allen has noticed Gladstone residents have become more interested and active at auctions.

Low prices and a drop in supply of homes to the market were leading more people to sign on the dotted line of a sale deal, he said.

Mr Allen said it was the under $300,000 market that was drawing attention at auctions in Gladstone.

For example, from March 15 to May 19, seven properties sold (not all after auction) in south Gladstone all under $200,000.

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The Gladstone local said he was convinced the market was at its bottom.

"The smart buyers are taking the opportunity to get in while the prices are low," he said.

"Crowds are starting to get bigger at auctions but not everyone is looking to bid.

"Some aren't actively looking to buy, they're more researching the market."

Mr Allen said Hervey Bay was another region experiencing increased interest in auctions.

"The improvement in Hervey Bay auctions has been as good, if not better, than Gladstone," he said.

In his opinion, Gladstone has reached the bottom of the market.

But he admitted "it's a bit of a gamble" when asked if it really was the bottom, considering analysts have declared it for months.

"The only time you know you're at the bottom is when it starts going back up," he said.

"As supply declines, if the demand stays the same there's potential for prices to rise ... in Gladstone we're seeing a supply decline."

But the director said any reprieve in prices could be at least six months away.

"If anything like the hospital upgrade or the port redevelopment started, or even if Adani (Carmichael mine) goes ahead, before the end of the year it would cause more housing demand," Mr Allen said.

"I'm convinced that even though the Adani project won't have a direct impact on Gladstone with exports, the fact that people will have jobs to drive or fly in and out of will stimulate the local economy."


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