The Gladstone commercial markets have been heavily hit during the post LNG period in 2012 and beyond. The city saw a huge investment in infrastructure prior to this which saw the population swell and need for accommodation result in huge price escalation and low vacancy.
Commercial markets also saw a renaissance during this period with a vibrant city centre seeing retail rebound with high occupancy and demand to invest. Similarly the commercial and industrial markets were in high demand with many supporting businesses needing to occupy space as well as manufacturing, storage and distribution keeping the industrial market buoyant. However, asthe jobs moved so did the increased population putting pressure on this regional town which boasts some of the finest infrastructure in Australia. As the flights stopped, both residential and commercial occupancy levels decreased and unemployment rose to new highs leaving the devastation across the property markets.
While the commercial rental market has been hit hard, high vacancies and next to no demand to occupy space, rental rates are poor however without deals, the extent to which is hard to quantify. Receivers have been active in bringing assets to the market, after a long period of inactivity and encouragingly 2017 has seen an improvement in sales turnover. During the first nine months of 2017 we have recorded $55.341million in sales up 172.59% on the full 2016 year and well ahead of the $6.26million recorded during the 2015 calendar year.