Newsletter Articles

There are always gains to be made in property.

I read with interest recently in a Courier Mail article that Queensland continues to be the hotspot for many investors Australia wide.

The story mentioned that, although the market is subdued in South East Queensland, the fundamentals remain strong. Property markets throughout the rest of the state maintain signs of life, with the current coal boom sparking an investment rush in regional Queensland.

Collinsville, a small mining town in North Queensland, has seen a flood of investors in recent times. A Real Estate Agent in the town observed that the market began to stir 3 or 4 years ago and prices have continued to soar with basic houses that were selling for $50,000 now going for a massive $220,000. This price hike has largely been contributed to by the building of Q Coal’s Sonoma mine only 12km away.

Herriot’s Independent Valuers, commented that “if you want to make a capital gain on a house in Queensland now, go and buy in a mining town”. He also outlined a list of hotspots including;

Collinsville	Rockhampton
Bowen	Spring Hill
East Mackay	Sunshine Coast
Mornington (Mt Isa)	Walkerston
Proserpine

Data gathered in September 2006 by Herriot’s indicated that in each
of these areas there was at least a 20 percent rise in real estate, with some areas like Moura and Mornington reaching a price hike of around 40 percent just in the past 12 months.

Regional soaring house prices have resulted from a combination of the mining boom, the recovering sugar industry and proximity to amenities. Although at first glance the property boom seems to be slowing, if you are looking in the right place, you will see that Queensland’s market prospects are buoyant, and there are always gains to be made in property.