Gladstone's green transition a major lure for property investors

As Gladstone in Central Queensland powers towards an economy driven by renewable energy, it is also emerging as a target for property investors looking to time the market before prices and rents rise.

With billions of dollars of investment in the pipeline, Gladstone is rapidly transitioning from a traditional industrial town into an innovative centre at the heart of Queensland’s inevitable shift towards renewables, bringing with it workers, population growth and increased demand for housing.

Among the projects currently underway are Fortescue Future Industries’ construction of the world’s biggest electrolyser manufacturing facility, which is the first stage of a 100-hectare Green Energy Manufacturing Centre, the 1.6 billion Gladstone Energy and Ammonia Project, and more than $4 billion investment in rail infrastructure into the central Queensland coastal city.

These and other projects are generating thousands of jobs and reshaping the regional city 500 kilometres north of Brisbane.

The project will convert 1.5 million tonnes of coal per annum to produce green ammonia, synthetic natural gas and electrical power, providing 1,000 construction and 200 operational jobs for Gladstone.

The wider shift in the state away from brown industries, such as coal, has been more than compensated for in Gladstone by the growth in sectors such as utilities services, education, information technology, telecommunications, and professional services.

Managing Director of the Cameron Bird Group, Jack Bird, said an already low rental vacancy rate of 1.2 per cent was likely to tighten further, while the capital growth projection of Gladstone real estate was 10 per cent.

“The state government has committed $62 billion to transitioning to a green energy future and Gladstone is at the centre of this major shift,” Mr Bird said.

“The influx of workers has already begun and is increasing pressure on an already tight market.”

The new rail line will connect the Surat Basin to Gladstone and also create 600 new jobs.

In contrast to rental yields in the nation’s capital cities, the Cameron Bird Group’s recently completed Eden Residences in Gladstone are generating rental yields in the range of 6.45 to 7.09 per cent for two and three-bedroom townhouses priced from $297,500 to $350,000.

“Gladstone’s historically boom and bust economy is now a thing of the past, with new and diverse industries less susceptible to the demand fluctuations that made it so volatile previously,” Mr Bird said.

“There is simply no quick solution to the dwelling supply issue, so those who take action now will get the growth at a low entry price point, with rental returns that will only head upwards as well.”

As the rest of the country’s property markets stagnate, Herron Todd White’s national property clock determined that Gladstone was a “rising market”.

Lifestyle benefits

The 63,000 residents of Gladstone enjoy a quality lifestyle shaped by consistently pleasant weather and all the benefits of a coastal location with quality beaches and leafy suburbs and town centre.

As well as access to Great Barrier Reef islands and lagoons, including Heron, Lady Musgrave, North West and Wilson, among others, the region is renowned for its fishing and boating.

It is home to Australia’s most northerly surf beach, Agnes Water, and is close to national parks, laid back coastal villages and rural hinterland lifestyles that have made it an attractive destination for holiday makers, and sea and tree changers.

Gladstone, as the gateway to the Southern Great Barrier Reef, offers a great lifestyle with beautiful beaches and nature retreats such as the Tondoon Botanic Gardens.

The Gladstone Regional Council boasts that the region stages more than 200 festivals and events annually, including the famous Brisbane to Gladstone Yacht Race and harbour celebrations, Australia’s largest family friendly fishing tournament, the Boyne Tannum Hook-up and destination events, such as the Agnes Blues and Roots Festival, Luminous, Captain Cook 1770 Festival, and Under the Trees Festival.

Gladstone also has cruise ship docking capabilities and is now a cruise stop-over destination for around 15 domestic and international cruises annually, with increasing and growing potential in this market.

“On the one hand you’re just an hour’s flight from Brisbane but on the other you’re a world away from the stresses, traffic, commutes and hectic nature of city life,” Mr Bird said.

He described the Cameron Bird Group’s Eden Residences as taking coastal living to a whole new level.

“We’ve created the ultimate community, complete stylish townhouses, a stunning resort-inspired pool, entertainment pavilions, barbecue areas and recreating space, all completed to the highest standards of build and design.”

Jack Bird, Managing Director, Cameron Bird Group

Since inception, the Cameron Bird Group has prided itself on providing a higher level of customer service than its competitors, as well as rigorous research identifying investment options with the highest possible cash flow.

Throughout South East and regional Queensland, we can connect you with the best investment property for your portfolio,” Mr Bird said.

“Decades of experience has taught us how to identify emerging hotspots and evaluate properties based on their potential for capital growth, demand, rental yield and market stability.

​“Importantly, we will travel the journey with you, from construction through to securing tenants with rental yields that will produce the best cash flows and extra return on investment.”

The Group has been in business for more than 40 years and forged long-term relationships with hundreds of investor clients.

“Many of these investors are repeat buyers, some have now purchased eight or more properties.

“Helping and guiding our investors build a profitable portfolio and reaching their retirement goals sooner is incredibly rewarding.”