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Gladstone delivers double energy boost with green light for gas, solar projects

Gladstone delivers double energy boost with green light for gas, solar projects

Central Queensland’s energy sector has been boosted with a gas joint venture awarded two petroleum leases and a planned $350 million solar farm near Gladstone farm winning backing from a UK investment and venture capital group.

The Mahalo gas joint venture between Comet Ridge, Santos and APLNG, was granted two, 30-year leases allowing it to move into production.

Comet Ridge chairman James McKay said the granting of the leases followed years of exploration, appraisal and development planning activities to prove up Mahalo, west of Gladstone, as a valuable development-ready gas project.

He said the project now has full regulatory approval to enable the project to realise full value for the asset.

‘’The Mahalo Gas Project is well positioned to deliver meaningful gas production into the domestic and export market as part of an emerging greater Mahalo fairway,” Mackay said.

A final investment decision has yet to be made.

The approvals coincided with United Green taking a majority stake in the Rodds Bay solar farm from Renew Estate, a joint venture between Energy Estate, Beast Solutions and global solar operator WIRSOL Energy.

The 300 megawatt project, 50 kilometres south of Gladstone, would be one of Australia’s largest renewables projects and add to the 6600MW of operational and committed renewable energy generation capacity.

If the project moves to development it would create more than 300 construction jobs.

Premier Annastacia Palaszczuk announced the deal this morning and said the equity investment from United Green was a vote of confidence in Queensland’s renewables sector and the state’s economic recovery.

“While there are still some steps for this project to follow, this major investment will mean hundreds of new jobs in the Gladstone region when the project is due to start later this year,” she said.

Gladstone has also been marked as a potential hub for hydrogen production.

“With hydrogen the sky’s the limit,” Palaszczuk said.

The solar deal was a first for United Green in the Australian energy market. It also has investments utility-scale wind and solar developments in Europe, Asia and the Middle East.

Renew Estate director Vincent Dwyer said the Rodds Bay project was a commitment to a sustainable future for the Gladstone region.

“We are delighted to have secured such a capable and experienced partner in United Green, with a shared vision for Queensland as a renewable energy powerhouse,” Dwyer said.

“Rodds Bay will not only create direct employment through jobs on site, but will create major opportunities for suppliers across a range of areas.

“We worked closely with Trade and Investment Queensland (TIQ) to secure the investment, and we are very grateful to TIQ for their introductions and support.

“We’re also continuing to work closely with them to connect into local supply chains as part of delivering jobs and regional economic development.”

United Green Chief Investment Officer Tim Mole also welcomed the move. United Green has investments across energy, real estate, technology, nutrition and trade.

“The strength of support for this project from the Queensland Government, the local community, local businesses and other stakeholders gives us great confidence in taking this project forward to construction and marks Renew Estate as one of Australia’s leading renewable energy developers,” Mole said.

Renew Estate will continue to be a shareholder in the Rodds Bay project.

 

 

 

This article is republished from inqld.com.au under a Creative Commons license. Read the original article.

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Gladstone

Gladstone sees limited renovation activities: HTW residential

Gladstone sees limited renovation activities HTW residential (1)

There has been little change in regard to COVID-19’s impact on Gladstone’s property market, according to the latest Herron Todd White (HTW) residential report.

The valuation firm suggests in locations across the nation, the downtime delivered by isolation has spurned on owners looking to improve their assets through maintenance and upgrade.

This month’s HTW report highlights where renovations are on the rise and the price points and outcomes those markets can expect.

“It’s just about business as usual for our market. Sales continue to tick over with no evidence of any further declines in value,” the valuation firm said.

The HTW report notes rental vacancies remain tight with a vacancy rate of 1.6%, the lowest they have been since the peak of the market.

Affordability is still the key driver in our market and while we are not out of the woods just yet, it’s looking more and more likely that COVID-19 will be remembered as just a very minor blip on the radar for Gladstone’s residential market.

In terms of renovations, there has really been very limited activity in the past 12 months, apart from every man and his dog doing minor maintenance or landscaping work during lockdown, the report noted.

The reason for the lack of renovation work is really unknown. Despite the market looking up, a significant portion of homeowners in Gladstone would have negative equity in their homes from the market downturn, so in essence cannot afford to renovate.

“We’ve seen the odd, full internal renovation, in most cases of a mortgagee sale property that is in a state of disrepair and that sold towards the bottom of the market range.Completing only minor cosmetic works to these types of properties adds considerable value to the property,” the valuation firm dais.

While not quite considered a renovation, construction of new sheds on existing properties has surged over the past several months.

“The reasoning behind this sudden increase in sheds being built is also unknown. Interestingly, the size of the sheds is also increasing,” the valuation firm said.

Once upon a time, a six metre by six metre shed in the back yard was the norm, however this is no longer the case. Longer and wider sheds with higher clearance are becoming the norm along with features such as mezzanines and internal bathrooms.

“We have also noticed a distinct uplift in pricing for sheds in the region. Costs appear to have jumped about $100 per square metre in the past few months and this sudden jump in cost has not yet been reciprocated in the added value of a shed to a property.”

An original three bedroom home in West Stowe with a renovated kitchen has recently been sold for $278,000.

The four bedroom, one bathroom house is situated at 1130 Calliope River Road (pictured below).

It features hardwood timber floors, three bay shed and mountain views.

The property was last sold in 2012 for $60,000.

Gladstone sees limited renovation activities HTW residential (3)

A new listing is a renovated home in Sun Valley priced at $179,000.

The three bedroom, one bathroom house is situated at 2 Franmaur Street (pictured below).

It comes with three bedrooms, lounge and dining areas, functional kitchen and covered entertainment area.

Gladstone sees limited renovation activities HTW residential (3)

 

 

 

This article is republished from www.propertyobserver.com.au under a Creative Commons license. Read the original article.

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Gladstone

Now is the best time to find higher yielding properties in Rockhampton and Gladstone: HTW residential

Now is the best time to find higher yielding properties in Rockhampton and Gladstone HTW residential (2)

In the Rockhampton region, yields have always been a strong consideration for the investor market as the region does not suffer the significant price fluctuations of the larger city markets, according to the latest Herron Todd White (HTW) residential report.

The valuation firm took a look at rental yields across the nation.

“Any capital gain to be had in our region is therefore a long-term commitment. A high grossing yield provides the incentive to remain in the market,” the valuation firm said.

“On the other hand, most investors coming into the Gladstone market are more looking for short to medium term capital gains, especially given the timing of the current market cycle.

“The current state of the Rockhampton and Gladstone markets is considered to be at the early stages of recovery, so typically now is the best time to achieve a higher yielding property while values remain at an affordable low and rents are starting to creep up after a consistent tightening trend of vacancy rates over the past 18 months to two years.”

Across the Rockhampton and Gladstone regions, the type of investor varies greatly from the typical mum and dad investor who may have one house other than the family home, through to interstate investors who invest significantly in the region via the purchase of multiple dwellings or sets of flats.

Whilst rarely seen, there is also a small degree of foreign investment.

“The emergence of the Rockhampton Riverfront precinct over the past ten years has also provided the opportunity to hold a holiday unit and receive the higher return over peak periods, or the benefit of a dual key arrangement, although there is a limited market for fully serviced apartments in our region,” the valuation firm added.

Gladstone has a significant supply of inner city apartments operated as serviced apartments aimed mainly at corporate travellers as well as tourists.

Non-traditional income producing properties (such as Airbnb) are less common regionally, with little evidence available to determine a yield.

There are however the occasional peak periods where traditional short-term accommodation cannot cater to the market, such as during the Beef Australia events held every three years, where Airbnb is extremely effective, however this is not an ongoing source of income throughout the year.

In the residential space, it is unlikely that a standard suburban home would attract what investors would consider to be a high yielding return on investment, depending on the location.

The report notes a typical 10 year old, four-bedroom home that may sell for $470,000 may only provide a gross yield in the order of 5% to 5.5%. This type of yield reflects the low-maintenance nature of the property.

An entry level home in the older, established areas of Rockhampton will be more attractive if assessed on a yield basis only, for example a 1940s high set three-bedroom fibro home, not directly flood affected (becomes isolated during flood periods) may sell at around $160,000 and provide a gross yield somewhere between 7% and 8%.

Whilst this may be more acceptable to most investors, there is likely to be higher levels of expenses involved with maintaining the property which would affect achievable rental income.

“Gladstone properties reflect similar yields, however the price points differ slightly,” the valuation firm said.

A typical five to 10 year old, four-bedroom home in Kirkwood or New Auckland would sell for around $300,000 and would reflect a gross yield in the order of 5% to 6%.

An older 1960s high set, three-bedroom home in a central suburb such as West Gladstone or South Gladstone would typically sell for around $200,000 and provide a gross yield somewhere between 6% and 8%.

The best high yielding property type in our region is flats or multiple properties on one title.

Due to the multiple occupancy nature, the income generated is often at least double traditional residential housing.

“Whilst we have example after example of traditional sets of flats achieving gross yields typically in the high 7% to low 8% range (buy in prices around the low to mid $300,000s), there are still some rare opportunities out there,” the valuation firm said.

Now is the best time to find higher yielding properties in Rockhampton and Gladstone HTW residential (1)

A recent sale of a two x two-bedroom duplex at 12 Macarthur Street, Koongal (pictured above) for $210,000, reflects a gross yield of 9.9%.

It is difficult to beat a near 10% return on a residential property in this region. This property then may benefit from the potential to increase the yield through a renovation and in turn increase the annual income able to be generated by the duplex.

 

 

Source: www.propertyobserver.com.au

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Gladstone

Bargains aplenty in Gladstone as prices drop and rents, yields rise

Bargains aplenty in Gladstone as prices drop and rents, yields rise

Property prices have hit rock bottom in Gladstone, creating some extraordinary opportunities for investors looking for bargains.

PROPERTY prices have hit rock bottom in Gladstone, creating some extraordinary opportunities for investors looking for bargains and an easy income stream.

Real estate agents in the central Queensland city say it is possible to buy an investment unit for $75,000 and rent it out straight away for $140 a week, with the chance to increase the rent at the end of the lease by 20 per cent.

Ray White Gladstone director Andrew Allen said rental space in the area was at a premium, resulting in a vacancy rate of just 0.6 per cent, which was putting pressure on a very tight market.

“A property that you would rent in Gladstone for, say, $200 a week, could cost you double that in nearby Bundaberg,” Mr Allen said.

He believes it is just a matter of time before those rates are realised in Gladstone.

Bargains aplenty in Gladstone as prices drop and rents, yields rise 1

The latest figures from the Real Estate Institute of Queensland show the median house price in Gladstone fell 3.2 per cent in the June quarter to $270,000.

In the three months to June, Gladstone’s unit median fell 17.4 per cent to $162,000 — the most affordable of any major region in Queensland.

“That low buy-in price, coupled with healthy rental yields, makes it an attractive prospect for investors,” according to the REIQ.

This time three years ago, the residential vacancy rate was 10.2 per cent, but now sits at just 3.1 per cent.

“It has been several years since local property managers have seen conditions as

competitive as these,” the REIQ said.

Bargains aplenty in Gladstone as prices drop and rents, yields rise 2

Over the June quarter, the median weekly rent for a three-bedroom house increased from

$223 to $230.

Likewise, the median weekly rent for two-bedroom units increased from $170 to

$180.

Rental yields have also spiked.

The gross yield for houses is currently 4.6 per cent and the gross yield for units is now 5.8 per cent.

REIQ CEO Antonia Mercorella said Queensland’s rental population was on the rise, with 35 per cent of the state now renting — and that was only set to increase.

She said it was good news for investors, because not only were price points more affordable, but rental yields were also strong.

Bargains aplenty in Gladstone as prices drop and rents, yields rise 3

 

 

Current investment opportunities in Gladstone include a small apartment at 5/32 Elizabeth Street in South Gladstone, which is on the market for just $75,000.

A single level duplex at 27 Mylne St, West Gladstone, is for sale for $290,000, with an expected rental return of $320 a week, and a four-bedroom home on a big block in the suburb of Kirkwood is on the market for $349,000, with an expected rental return of $370 a week.

“The building alone would cost $300,000 to build — so you’re only paying $49,000 for the land,” Mr Allen said.

Bargains aplenty in Gladstone as prices drop and rents, yields rise 4

One of the state’s other tightest rental markets is Cairns, with a vacancy rate of 2.3 per cent, according to the REIQ.

Local property managers say the new development stock that’s coming onto the market is being snapped up by buyers, with fierce demand from tenants to lease them.

The consistent high demand has resulted in rent rises of $10 to $15 a week over the past year.

The median weekly rent for a three-bedroom house is now $390, while the median rent for a two-bedroom unit is $310.

Cairns investors continue to enjoy some of the best gross rental yields in the state.

The gross rental yields for houses is 5.1 per cent, while the yields for investors is an impressive 7.3 per cent.

Bargains aplenty in Gladstone as prices drop and rents, yields rise 5

It’s a different story in Townsville, where the property market has softened following the impact of Cyclone Oma.

The median house price in Townsville fell 4.7 per cent over the June quarter to $305,000, while the median unit price dropped eight per cent to $230,000.

But there is a silver lining, with rents and yields in the region both increasing.

The gross rental yield for houses in March was 5.3 per cent, but increased to 5.5 per cent in the June quarter, while unit yields have risen from 5.8 per cent to 5.9 per cent.

Queensland Premier Annastacia Palaszczuk said more than $245 million in disaster funding had so far been rolled out across 39 communities impacted by the cyclone.

“This includes more than $91 million paid to primary producers, small businesses and not-for-profits, $33 million paid in personal hardship assistance and more than $116 million paid to local governments and agencies to support the reconstruction of essential public infrastructure and other recovery programs,” Ms Palaszczuk said.

Bargains aplenty in Gladstone as prices drop and rents, yields rise 6

On the Gold Coast, house prices softened slightly in the June quarter as the median house price fell 1.6 per cent to $615,000.

Unit and townhouse prices rose over the quarter by 1.2 per cent to record a quarterly median of $430,000.

Four suburbs saw double-digit gains during the year to June: Paradise Point (20.6 per cent), Surfers Paradise (14.2 per cent), Tallebudgera Valley (12.4 Per cent) and Jacobs Well (10.9 per cent).

And the Sunshine Coast market also recorded softer conditions in the three months to the end of June, but solid price growth over the past year means that annual price growth remained some of the best in the state.

Bargains aplenty in Gladstone as prices drop and rents, yields rise 7

In the 12 months to June, Noosa was Queensland’s top performer with median house price growth of 2.6 per cent to $733,750.

Noosa’s unit market was the clear winner over the past five years as well — recording price growth of more than 50 per cent.

The Sunshine Coast’s rental market is also recording more demand than supply with its residential rental vacancy rate down to 2.3 per cent over the June quarter.

Median rents for three-bedroom houses, two-bedroom units and three-bedroom townhouses have also increased over the year.

 

 

 

Source: www.news.com.au

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