Gladstone among the 10 property markets in decline: Herron Todd White

There are 10 regions in Australia where the property market is still declining, according to Herron Todd White’s latest monthly report.

The 10 regions are across the ACT, New South Wales, Victoria, and the Northern Territory, but mostly Tasmania and Queensland.

Source: Herron Todd White

"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."