Office Locations - opg.net · Hospitality There have been limited sales in the hospitality market this year to date. Although the majority of operations have seen contracting turnovers

Page 1 - Opteon Central Queensland Newsletter May 2015

Office Locations: Airlie Beach

Biloela Emerald

Gladstone Wide Bay Mackay

Rockhampton


Inside This Issue:

Rockhampton................................................................................................................................................................ 3

Hospitality ..................................................................................................................................................................... 5

Emerald ......................................................................................................................................................................... 6

Wide Bay ....................................................................................................................................................................... 7

Biloela ......................................................................................................................................................................... 10

Whitsunday ................................................................................................................................................................. 11

Mackay Residential ..................................................................................................................................................... 12

Mackay Commercial/Industrial .................................................................................................................................. 13

Gladstone .................................................................................................................................................................... 15

Rural ............................................................................................................................................................................ 16

Contact Us .................................................................................................................................................................. 17


Rockhampton

Gracemere Market Update

It’s no secret that the residential market in Gracemere is over supplied with investor targeted

house and land packages. Over the past five years Gracemere has seen a huge amount of

development in mainly stand-alone dwellings but also townhouse complexes.

The abundance of investor targeted house and land packages has seen the vacancy rate soar

to almost 10% in December 2013. The vacancy rate in March 2015 is around the 5.5%. With

an increasing vacancy rate means fierce competition between landlords to obtain a tenant

and a falling per week rental amount with some landlords offering incentives like one week’s

free rent or a free iPad on a 12 month tenancy. The median rent for a 3-bedroom dwelling

was $320/week in March 2014 and is now $295/week in March 2015 showing a 7.8% decline

according to the RTA’s monthly report.

With a rising vacancy rate and falling rental amounts, what usually follows is a market

correction. Gracemere has witnessed a market correction with values on the decline with the

majority of buyers being locals with the odd investor related purchase. Many investors have

tried/trying to exit the market with one sale occurring last September for $230,000 with

dwellings selling in the same estate for mid to high 300’s, 2-3 years ago. This was a standard

project built dwelling offering 3 bedrooms, 2 bathrooms, 2-car garage on a large block,

however located close to a railway line. Well located, owner occupied and locally built

dwellings are still selling quite well, with local agents reporting some good interest.

Rockhampton

Adam Bray

Ph: 0427 807 440

STATE OF THE

MARKET


Gracemere has gone from being an investor “hotspot” to now being publicised by

hotspotting.com.au’s Terry Ryder as one of the Top Ten markets to avoid with Gracemere

coming in at number 4. Several other Central Queensland towns including Emerald,

Gladstone, Mackay and Moranbah also made the list. This kind of publicity is sure to put the

brakes on investor related purchases.

Gracemere Shopping World opened in December 2011 with Woolworths, 25 specialty stores,

McDonalds and Red Rooster. This along with a falling asking rent means an affordable option

for a family to live in a brand new dwelling and have all the conveniences without having to

drive into Rockhampton.

Rockhampton

Adam Bray

Ph: 0427 807 440

STATE OF THE

MARKET


Hospitality

There have been limited sales in the hospitality market this year to date. Although the

majority of operations have seen contracting turnovers over the last two to three years, the

contraction appears to have stabilised.

There are a number of businesses available for sale, however the freehold rent payable upon

the leases particularly in the mining reliant regions such as Mackay and hinterland are

becoming unsustainable. This is evident when historical occupancy rates have contracted

from a high of some 79.1% in June, 2012 to a low of 50.9% in the corresponding quarter in

2014. There have also been a number of complexes that have been commissioned during

this period and include the Oaks banner operation on the City outskirts on the corner of

Albert and Carlyle Streets, plus Potters Oceanside Motel adjoining the developing estate of

Oceanside at East Mackay.

The Ibis Mackay at the Mackay Airport is anticipated to be commissioned in June. This is the

only accommodation complex available in the airport precinct and the 152 room multi storey

complex is expected to have nightly room racks in the vicinity of a $100.

Two operating hotels in the Bowen region have been offered for sale via a national marketing

campaign. The auction took place late last week and early indications are at least one of

these properties is expected to be sold with current negotiations nearing common ground.

Hospitality

Ryan Booth

Ph: 0400 765 625

STATE OF THE

MARKET


Emerald

Blackwater

Blackwater along with Moranbah and Dysart, have made it to the ’Biggest Median Price Falls

in Mining Town Suburbs top 5’ list. This is a stark reminder of just how bad the market has

become in mining towns in the Bowen Basin area. With freehold dwellings being recovered as

selling as low as $42,500 in Blackwater and a median price of just $122,500 we are seeing a

dramatic fall from the median house price of $456,500 in 2012 during the resources boom.

In 2012 the median weekly rent is recorded at $800 for a 3 bedroom house and $1,500 for a 4

bedroom house, showing typically a yield of around 10%. Current median rent is $200 for a 3

bedroom house and $300 for a 4 bedroom house with a Median yield of 4.04% and a vacancy

rate of 3.67%. Although there is still rental activity happening with 94 bonds lodged in the

January – March period in 2015, but vacancies have been as high as 8%.

Emerald

Alexandra Marles

Ph: 0419 488 043

STATE OF THE

MARKET


Wide Bay

Provincial Areas of Gympie, Maryborough, Hervey Bay, Bundaberg and North

Burnett

Sponsorship

On Sunday 17 May 2015 Opteon (CQ) sponsored the Mundubbera Golf Open held on the

picturesque course which was presented in good condition.

Array of Trophies Ladies winner, Mrs Lorraine Lindenmeyer

with Opteon (CQ) Director, Alan Gees

Men’s open winner, Scott Warren who shot a 4 under par round

We have sponsored this event for many years and continue to receive wonderful recognition

of our contribution from the Golf Club and the people of Mundubbera.

Wide Bay

Alan Gees

Ph: (07) 4123 2499

STATE OF THE

MARKET


Hervey Bay

Works have begun on a new shopping centre at the corner of Boat Harbour Drive and

Margaret Street, Urangan. The centre is to be known as the “Botanic Gardens” shopping

centre.

The expected construction duration is 12 – 18 months. On completion the centre will house

Aldi, McDonalds and other convenience shops. This will be the second stores of both Aldi and

McDonalds for Hervey Bay.

Bundaberg

There have been 17 sales of residential units in the coastal suburb of Bargara in the last 6

months. These sales range in price from $95,000 to $1,000,000 with the median price being

$327,500. Three of these sales have been located in a complex known as ‘The View’ which is a

five level, 5 unit complex with each unit covering one level. This complex is located on the

Esplanade facing a sandy beach and foreshore parklands with oceanfront walkway which links

to local shops, hotel and Golf Club and Course. Each unit comprises a 2007 built, attached

multi storey strata unit, of rendered finish construction, with a concrete roof.

Accommodation comprises 4 bedrooms, 3 bathrooms and basement/internal carspace for 2

vehicles. Common facilities include immaculate landscaped lawns and gardens, lift, partly

fenced and exposed aggregate concrete driveway and paths. Living area 175 sqm and outdoor

area 26 sqm. Details of sales:

Wide Bay

Alan Gees

Ph: (07) 4123 2499

STATE OF THE

MARKET


Address Recent

Sale Date

Recent

Sale Price

Previous

Sale Date

Previous

Sale Price

Difference

2/33 Esplanade, Bargara 3-Nov-14 $775,000 6-Feb-08 $1,150,000 -33%

4/33 Esplanade, Bargara 22-Dec-14 $850,000 19-Aug-10 $1,467,000 -42%

5/33 Esplanade, Bargara 20-Nov-14 $1,000,000 5-Oct-07 $1,575,000 -36%

A 30 lot subdivision has been approved on 44.9 hectares of land located in the Gooburrum

area which is located to the north of the city of Bundaberg. The subdivision is located

adjacent to a rural residential estate known as ‘Tantitha’ which is a well regarded rural

residential area. The site currently has no wastewater and no water supply however the

developer intends to supply reticulated water to all lots in line with properties in the

‘Tantitha’ estate. One lot will be connected to the sewerage system with the option for

remaining lots being to install on-site wastewater facilities or at their own expense connect to

council’s sewerage system.

Wide Bay

Alan Gees

Ph: (07) 4123 2499

STATE OF THE

MARKET


Biloela

The residential market in the Callide Dawson region has continued its slow pace with

only a handful of properties being reported as sold over the last month. One such

property was a two storey dwelling in State Farm Road within Biloela. This property

sold in 2011 for $357,000 and has now resold for $330,000. It is a large 5 bedroom

dwelling with two bathrooms and a double lockup garage on the ground

level. Further improvements include a single bay colorbond shed and a large rear

entertainment area on a site of approximately 765 square metres. We believe this is

fairly typical of the moderate decline over the last few years but is certainly not to

the level of many of the smaller communities around the region.

We note several dwellings have either sold or are under contract in the resource

town of Moura. All of these sales have been under the $100,000 level confirming

several sales late last year in the $95,000 to $110,000 level. There is a lack of

confidence in these smaller towns with very few active participants in the market.

We are not aware of any commercial sales within the region over the last month and

only a limited number of rural transactions have occurred. One of note however is

the sale of “Barfield Station” via Banana. It consists of two adjoining titles of which

one is Freehold and the other is a Grazing Homestead Perpetual Lease (GHPL) with a

combined area of 6,114.74 hectares. The property comprises of a mixture of top

quality Softwood and Brigalow Scrub country and open Ironbark forest country with

some scrub influences. Within the scrub areas are some escarpment and ridge areas.

The property has been extensively cleared and developed with mostly Buffel and

Panic varieties within the scrub areas and mixed native species in the forest areas.

Approximately 320 hectares has been contoured and is used for cultivation. Erected

on the property is a partially renovated timber homestead plus a second dwelling

and several quarters and sheds. A set of steel cattle yards has also been erected near

the main station improvements with the main crush and calf cradle being located

under a large shed. The property is considered to be well fenced with multiple lane

ways servicing the yards and a total of 14 paddocks. The property is soundly watered

via a combination of equipped bores and open dams. The sales equated to

approximately $1,550/ha on a cleared, fenced and watered basis which we consider

as a strong sale.

Biloela

Murray Davis

Ph: 0407 175 566

STATE OF THE

MARKET


Whitsunday

Whitsunday Coast

In 2014, there was only one recorded house sale over $1 million for the Whitsunday coast

region which was a rural residential property at 61 Windemere Drive, Strathdickie which sold

for $1.1 million. So far this year we have experienced steady demand for rural residential

properties. Two of the highest rural residential sales recorded to date are in Windermere

Drive, Strathdickie:

35 Windemere, Strathdickie sold furnished for $1,052,000 on 13/02/2015

The property comprises a large 2012 built detached slab on ground house of concrete block

(rendered) construction with a colorbond roof on a site area of approximately 1 hectare.

Accommodation comprises 3 bedrooms, 3 bathrooms, separate toilet, lounge, dining, kitchen,

full size butler kitchen, study, theatre room, laundry, patio and pergola. The property also

included an attached high clearance carport for 4 vehicles and an attached garage for 1

vehicle. The property is of high quality fit out and features marble floor tiles and marble

bench tops. The property also includes a wet edge swimming pool and outdoor kitchen/bbq.

106 Windemere Drive, Strathdickie sold for $875,000

The property comprises a large 2004 built detached slab on ground house of concrete block

(rendered) construction with a colorbond roof on a site area of 1.109 hectares.

Accommodation comprises 3 bedrooms, 2 bathrooms, separate toilet, entry, lounge, dining,

kitchen/meals, family room, study, games room, laundry, patio, porch and attached garage

for 2 vehicles. The dwelling if of good quality fit out. The property also includes in-ground

swimming pool and 158 square metre high clearance colorbond shed.

Bowen

The Federal Government has recently asked the local council to provide feedback on the

proposed expansion plans for Abbot Point. One of the main points expressed by Mayor

Jennifer Whitney was that new workers’ accommodation should not be built until existing

homes in Bowen were filled. Abbot Point is about 25 kilometres north of Bowen. Bowen is

currently inundated with vacant properties listed for rent and for sale. There are

approximately 250 vacant rental properties. The oversupply is pushing rents down and forcing

property owners to offer lucrative incentives to entice tenants. Investor uncertainty is still

high within Bowen and it is evidenced within sales volumes. 2013 recorded 105 house sales,

2014 recorded 75 house sales and so far for 2015 there have only been 9 settled house sales

and 7 sales which are currently under contract. Despite any negative views, the development

would have a huge benefit to the struggling town and improvement to the local property

market.

Whitsunday

Tim Adams

Ph: (07) 4948 2966

STATE OF THE

MARKET


Mackay Residential

The residential market for Mackay continues to trend downwards on the back of

increasing numbers of “Mortgagee in Possession” sales and declining market

confidence. Not only is there considered to be an oversupply of residential properties

we are now seeing a number of “forced sales” occurring where the Banks are

realising bad debts and selling properties to recoup their loss. Traditionally these

properties sell below market due to the circumstances surrounding the sale and also

due to the market’s perception that these properties sell below market value. The

combined effect of the oversupply of property and “Mortgagee” sales has resulted in

a continued decline in values across Mackay.

As a result of the declining values there has been an increase in the volume of sales

across Mackay as buyers take advantage of the lower values to purchase properties

which are considered to represent good value. It appears that most of the sales are

due to Vendors having to sell and given this motivation, many are accepting offers

considerably lower than what the property was purchased for.

Overall there is still a lack of confidence in the residential market mainly resulting

from the negative feedback from the mining sector with further recent redundancies

announced and limited prospects of growth in the short to medium term.

The above property sold Mortgagee in Possession in May 2015 for $460,000. It was

purchased 11 December 2011 for $590,000.

Mackay

Residential

Alex Sellar

Ph: (07) 4957 2821

STATE OF THE

MARKET


Mackay Commercial/Industrial Market conditions within the commercial/industrial sector are still poor.

Minimal sales and leasing transactions are the norm at the moment with little

evidence available to substantiate current market conditions.

On the flip side commercial developments are still occurring with some notable

developments being:

Ibis Hotel

This is set to open early June 2015 and is located within the airport precinct and is

the first such development undertaken at the airport.

The hotel will have 152 rooms, 100 seat beer garden, 70 seat dining area, 50 seat bar

area, will create 65 new jobs and will have a rating 3.5 stars.

Ibis Hotel, Mackay Airport

Mackay

Commercial/

Industrial

Paul Krause

Ph: 0419 024 591

STATE OF THE

MARKET


Parkside Shopping Centre – West Mackay

The development is currently under construction with a major road upgrade

underway at the time of writing this article. The Centre will be anchored by Coles and

will have other specialty stores that will include a liquor outlet, restaurant and a

hairdresser although the final tenancy mix is not yet known. We have been advised

that the complex is over 85% leased.

Artist’s Impression – Parkside Shopping Centre, West Mackay

Harrup Park Function Centre

Full town planning approval has been issued for the construction of a function centre

to cater for guests up to 200 people. Construction works are underway which has

involved the removal of 3 older style timber framed dwellings which will enable the

complex to cater for an additional 98 carparks. The development will also

compliment the additional development planned for the site of a motel. Construction

is due for completion in October/November 2015.

Some further disappointing news for the region is the loss of another 100 jobs

planned by Hastings Deering that is to affect both the cities of Rockhampton and

Mackay. This further cements the current state of the mining services industry and

again will affect the confidence level of the region.

Mackay

Commercial/

Industrial

Paul Krause

Ph: 0419 024 591

STATE OF THE

MARKET


Gladstone Units and Townhouses

The Gladstone townhouse and unit market has continues on a slow and weak trend

looking towards the end of the financial year. Whilst rents have stabilised to between

$300 and $350 per week for modern product, sales activity is dismal to say the least.

With 206 units or townhouses currently available for rent with an average asking rent

of $327 per week, an average listing period of 50 days indicating high levels of

competition for similar product the unit and townhouse market is undoubtedly the

weakest sector in the Gladstone market.

This weakness is on the back of high levels of oversupply and reduced returns

essentially reducing the investment demand to zero for the sector.

In the current financial year there has been as few as 46 unit or townhouse sales with

an average sales price of $335,000, eight of which in Tannum Sands and Boyne

Island.

This in comparison to the previous financial years below shows the true decline:

2012/2013 – 332 sales with an average sales price of $412,000

2013/2014 – 121 sales with an average sales price of $368,000

2014/2015 – 46 sales to date with an average sales price of $335,000

Moving forward we do not consider these figures to change dramatically, with

continued high levels of supply and low levels of demand capital growth is not on the

cards for some years in this sector and a supply demand equilibrium is considered to

be at least 24 months away.

Gladstone

Aaron Armistead

Ph: (07) 4972 1656

STATE OF THE

MARKET

http://www.google.com.au/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.realestate.com.au/property-unit-qld-gladstone%2Bcentral-111420891&ei=BAllVYfKNobymQXtuoKACQ&bvm=bv.93990622,d.dGY&psig=AFQjCNHjPe6Yf1fNNdPGui9YJ2MU7kSLFw&ust=1432771196505763

http://www.google.com.au/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.realestate.com.au/rent/in-gladstone%2B-%2Bgreater%2Bregion,%2Bqld/list-1&ei=JAllVZ28HKe1mAXk24PwBw&bvm=bv.93990622,d.dGY&psig=AFQjCNHjPe6Yf1fNNdPGui9YJ2MU7kSLFw&ust=1432771196505763

http://www.google.com.au/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.cbsproperty.com.au/gladstone/suburb-profiles/&ei=SAllVfmsD8XEmQX7mYHQAw&bvm=bv.93990622,d.dGY&psig=AFQjCNHjPe6Yf1fNNdPGui9YJ2MU7kSLFw&ust=1432771196505763

http://www.google.com.au/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&ved=0CAcQjRw&url=http://www.booking.com/hotel/au/g60-serviced-apartments-gladstone.html&ei=MAllVayRH-OvmAXVg4DIBQ&bvm=bv.93990622,d.dGY&psig=AFQjCNHjPe6Yf1fNNdPGui9YJ2MU7kSLFw&ust=1432771196505763


Rural

The grazing market in Central Queensland is strengthening on the back of improved

cattle prices. The Queensland cattle market index is currently sitting at around 241.7

points up from 180.9 points in 2014.

Two recent sales include:

Charters Towers district property Liontown has sold for $8.7 million. The property is

located 48 kilometres south-west of Charters Towers and comprises 15,154 hectares

(37,446 acres). Improvements include a 4 bedroom lowset house, quarters,

machinery sheds and 2 sets of cattle yards. Divided into 27 paddocks with 13 dams

and 6 bores. Sold on a walk-in, walk-out basis with plant and equipment and 2,350

Brahman cattle.

Wild Horse located 30 kilometres south of Rolleston has sold for $9 million. The

4,574 hectare grazing property comprises primarily improved scrub country.

Structures include a home, sheds, airstrip and 2 set of cattle yards. The sale price

reflected $1,967/ha.

92.7

101.1108.5

124.7

142.5

183.2

155.3

169.8

187.3190.9

186.2

175.2180.6

169.7

182.2

197.0191.5

171.1

180.9

241.7

50.0

100.0

150.0

200.0

250.0

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Queensland Cattle Market Index 1996 to Present

Index

Rural

Justin Smith

Ph: 0408 791 000

STATE OF THE

MARKET


Contact Us

Airlie Beach

7/400 Shute Harbour Road

Airlie Beach QLD 4802

Telephone: (07) 4948 2966

Biloela

54 Callide Street

Biloela QLD 4715

Telephone: (07) 4995 6690

Emerald

PO Box 1907

Emerald QLD 4720

Telephone: 0419 488 043

Gladstone

Shop 2, 190 Goondoon Street

Gladstone QLD 4680

Telephone: (07) 4972 1656

Wide Bay

5 March Lane

Maryborough QLD 4650

Telephone: (07) 4123 2499

Mackay

8a River Street

Mackay QLD 4740

Telephone: (07) 4957 2821

Rockhampton

PO Box 708

Rockhampton QLD 4701

Telephone: (07) 4927 0893

Contact Us

[email protected]

STATE OF THE

MARKET

Documents

Office Locations - opg.net · Hospitality There have been limited sales in the hospitality market this year to date. Although the majority of operations have seen contracting turnovers