Oversupply hurting property values in fringes of Queensland's Gladstone: HTW

The city of Gladstone in Queensland was approaching the bottom of market cycle for houses for both April and May but it was one notch better for units, being at the declining market stage, according to valuation firm Herron Todd White's latest property clock.

The property clock is a simple broad brush means of suggesting where property prices are and what direction they are headed. 

Calliope is considered a fringe residential suburb in the current market, being located on the Bruce Highway, approximately 20 minutes from Gladstone. During the boom, Calliope expanded rapidly to help ease the accommodation demands on Gladstone. Unfortunately, as with Gladstone, development continued well past the peak of the market and supply in Calliope now heavily outweighs demand. Vacancy rates are high and this has forced rental and capital values down.

Most of the oversupply is of modern housing in new estates and there are also significant vacant land stocks available. New infrastructure is planned for the location with the local shopping centre undergoing an expansion to double the size of the IGA and provide more specialty stores. A new tavern is also planned. While this infrastructure will be good for the township, it is unlikely to curb the downward trend of values in the area. 

The median price of houses in Calliope was $377,000, according to CoreLogic RP Data. Property Observer looked up a few recent sales in the area on www.realestate.com.au:

1. A four-bedroom house at 4 Elliot Drive Calliope Qld 4680 sold for $369,000.

2. A three-bedroom house at 14 Trudy Avenue, Calliope, Qld 4680 sold for $335,000.