Why invest in Gladstone

Why INVEST in GLADSTONE

 

“Australians do not comprehend what is coming to our economy through CSG / LNG.”

Populaton Growth

The area is growign by 3,000 new residents per year, Gladstone supports 100,000 full time local residents

 

Employment

Just over 24,500 people are employed in Gladstone with a 13% growth in the labour force over the last 5 years. Local unemployment below the Queensland average of 5.8% and is only at 3.8%.  Salaries earned are 50% above the the typical Australian worker.

 

Housing Demand

There is a need to build 1,800 new homes each year in Gladstone due to continued demand

 

Investment by Industry

Over $100 billion dollars worth of new projects are planned in Gladstone, its economy continues to grow and strengthen

 

Fundamentals underpinning Gladstone

Ask any astute investor and they will all say that Investing in any Property must meet the following criteria :

  • Continued population growth
  • High demand for housing
  • Investment by industry
  • Investment by government
  • Strong job market with low unemployment
  • Good infrastructure to meet demand
  • Strong rental demand for housing
  • Capital Growth Potential
  • Positive Geared Investment Property

 

Gladstone has been highlighted by market experts as a top investment location! Tipped to deliver capital growth and positive geared investment opportunity in the medium to long term

Gladstone is one of the few Australian Cities that meet every one of these investment objectives and is widely known to have a massive resource industry (10 major industries) and an impressive population growth being driven by job availability. High Capital Growth prospects, low vacancy rates and low risk profile underpinned by high per capita incomes compounded by a drastic shortage of housing

Diverse regional centres are proving very popular amongst expert investors largely due to their lower buy-in values and higher rental yields plus the real potential of strong capital growth underpinned by strong fundamentals

Terry Ryder of Hotspotting says “I have a conviction, one that is confirmed everywhere I go, that Australians do not comprehend the scale of what’s coming to our economy!”

Australia is factually on the threshold of the greatest period of prosperity in our history and there will be mega repercussions for real estate … and few people actually get it?

Just because Federal Government are not selling the message, it does not mean it is not happening. Are you aware that in Queensland almost 90% of homes are receiving CSG and 18% of homes use electricity from gas fired power stations

How do Australians continue to have a recession mentality when the Resources Industry is incredibly strong with over $500 Billion Dollars of investment?

LNG is our new export frontier – get in on the action … most people don’t know that royalties from CSG-LNG are expected to increase from $120 million in 2014/15 to $985 million in 2031/31. Helping to fund community infrastructure and services including roads, hospitals and education

Think about the multitude offshoot industries that are and will be required throughout Australia to support CSG and LNG projects, this will amount to hundreds and millions of dollars in business opportunity

Gladstone alone has 7 very large projects under construction, in fact out of the 10 largest in the world, Gladstone has 3 of them! Total current investment is around $55 Billion Dollars with around $60 Billion committed … creating at least 17,000 new jobs

Another 9 projects are regarded as committed to start in the coming years totaling around $25 Billion Dollars and a further 11,000 new jobs … that is 28,000 new employment opportunities now through to the coming years

During the GFC Gladstone had an upsurge in real estate demand resulting in Capital Growth and ongoing rental increases with an expected increase of a further 20% during 2013 based on a surge of demand with an expected 2,000 workers under the Santos Project and around 4,000 under Bechtel who are constructing the 3 LNG projects on Curtis Island, Gladstone

 

Housing

Demand for housing requires 1,800 new dwellings per annum, with around only 500 homes currently under construction, the demand for housing is exacerbated by the undersupply forcing rental increases. Most new homes in Gladstone will thus be positively geared

If $20 Billion investment in Gladstone from 2004 to 2008 created a 30% increase in median house prices, ask yourself what will $100 Billion Dollars of investment do to the value of property in Gladstone which is currently under pressure as it is. The Gladstone property market cannot satisfy the current demand for accommodation a trend that will continue to be an issue for years to come as the Population of Gladstone moves towards doubling in size

In the meantime dwelling prices and rents continue to rise unabated … an investors dream coming true. Gladstone affords every opportunity of the median house price doubling in the coming years, so any talk of Gladstone already peaking are completely false. All one has to do is look at what has and is occurring in Western Australia in Karratha and Port Hedland and in parts of the Surat and Bowin Basins

Having recently been in Gladstone, Rockhampton, Mackay area I was pleasantly surprised to experience the positive electric alive feeling one gets in a city that bustles with activity, spending, happy people who have job security and a home to live in. Why the rest of Australia is depressed remains a mystery? I guess it is a direct result of inaccurate journalism and gullible readers

Dick McIlhattan, manager of Bechtel’s LNG projects says “The total world production (of LNG) at the moment is 200 to 220 million tonnes per annum. Our 4 Australian LNG projects under construction will produce 45 – 51 million tonnes per anum.” “What is going on in Curtis Island is unprecedented work, I have never seen anything like this in my 40 years in the company. This is unique.”

“There will be a lot of work for a lot of years to come in Gladstone”, he says with the first ounce of LNG yet to be mined or delivered, Gladstone is only in its fledgling phase but is already a “super infrastructure city with 10 major industries in place”. Where else in Australia does one city have 10 major industries?

 

 

House and Land Package Gladstone

Population increase in Gladstone is putting upward pressure on house prices and rental yields

Did you know …

 

Current Industries include : Aluminium, Power Plants, Coal, alumina, water plants, rail lines, steel production, airport, massive harbour, nickel, port dredging, gas pipeline, LNG and CSG

Established world class Major Industries made up of : Boyne Smelters Limited; Rio Tinto Alcan Yarwun; Queensland Alumina Limited; Cement Australia (QLD) Pty Ltd; Orica Australia Pty Ltd; QR National; Gladstone Ports Corporation Limited; Transpacific Industries

Are you now ready to acknowledge that “Gladstone is growing rapidly!” and Gladstone is still in its early phase of residential investment potential for you?

Current Projects and Future proposed large scale Industry Development include :

Balaclava Island Coal Terminal in Port Alma with $1.5 Billion investment; 800 construction jobs; 100 operational employees

Wiggins Island Coal Export Terminal with $2.5 Billion investment; 800 construction jobs; 120 operational employees; operational 2014

Gladstone Steel Pant Project (Boulder Steel) with $2.5 Billion investment; 2000 construction jobs; 1020 operational employees; commencing 2012

Moura Link – Aldoga Rail Project with $500 Million investment; 350 construction jobs; 550 peaking to 700 operational employees

Wiggins Island Rail Project : QR Natinal has signed an agreement to construct the $900 million rail project to Gladstone for first railings forecast mid 2014. Largest rail expansion in Australia requiring 3,000 construction jobs

Wiggins Island Terminal will transport an initial 27 million tonnes of coal with a project cost of $290 million for completion June 2013

Dredging International Australia is a joint venture to turn Gladstone Port into a world leading LNG export hub. Stage 1 is underway and worth $1.3 Billion and will secure the economic future of the port and of Gladstone itself. It will also deliver new channels and swing basins at the site over a 20 year period

 

Gladstone if planned properly can help you reach your retirement goals efficiently and a lot quicker than investing in Sydney, Melbourne, Adelaide etc. Why invest in negative geared properties when you have a factual opportunity of owning one that will be positively geared putting money in your pocket every week??

Gladstone region is a unique area of Australia, where tourism, major industry and quality of life co-exist. Gladstone manages to accommodate the needs of a modern industrial centre whilst still maintaining a great lifestyle for local residents and workers

 

Gladstone City and the rapidly growing communities of Boyne Island and Tannum Sands offer an appealing mix of quality country and city living and is served by a public and private hospital, 13 schools, the Central Queensland Institute of TAFE and Central Queensland University plus a diversity of retail, recreational, cultural, leisure and entertainment services and facilities, great outdoor and environment beauty … a truly energetic regional city that is alive and very well

With such a diverse range of environmental beauty and outdoor recreation at residents fingertips combined with a prosperous array of industry and jobs being plentiful … Gladstone is truly a unique location in which to live, work, play and invest

Gladstone is Australia’s 21st Century Industrial City and has a well planned approach to Sustainable Development with a 50 year Vision

 

Summary of Infrastructure :

Health : 12 Queensland Health Facilities including Gladstone Hospital and the private Mater Misericordiae Hospital

Schools : offering several primary schools and 3 high schools. A private school

Higher Education : University Campus and 2 Technical Colleges

Transport : Established and growing Road, Air, Sea Port and Rail infrastructure

 

LNG Industry Projects under Construction :

      Gladstone LNG (GLNG) Project

  • Consortium : Santos; Petronas; Total and Korea Gas Group
  • Investment $16 Billion
  • 5,000 new jobs for construction
  • 1,000 operational employees
  • First LNG deliver late 2015
    • Site could have up to 5 LNG trains if required

 

      Queensland Curtis LNG (QCLNG) Project

  • BG Group, Tokyo Gas and QGC
  • Investment $15 Billion
  • 5,000 new jobs for construction
  • 1,000 operational employees
  • First LNG deliver late 2013
    • A second train planned 6 – 12 months later

 

      Australia Pacific LNG (APLNG) Project

  • Origin, Conoco Phillips and Sinopec
  • Investment $14 Billion plus
  • 3,300 new jobs for construction
  • Operational employees TBA
  • First LNG deliver late 2014
    • Stage 2 under planning

 

 

Proposed Industry Projects under Consideration and Planning with $180 Billion Dollars across 42 projects include :

      Arrow Energy LNG Project

  • Shell and Petro China
  • Project status granted June 2009
  • EIS currently being prepared
  • 3,000 new jobs for construction
  • 300 operational jobs
  • Target for delivery 2016/7
  • 4 Trains

 

      LNG Limited

  • Capital $500 million
  • 120 Construction workers
  • 32 operational employees
  • Target for delivery early 2015

 

      Gladstone ‘Fisherman’s Landing’ LNG Project

  • LNG Limited
  • Construction commenced with feasibility study still underway

 

      Southern Cross LNG – Impel LNG Project

  • Impel Limited
  • Construction commenced with feasibility study still underway to supply late 2013

 

      Sun LNG Project (SLNG)

  • Sojitz Corporation
  • Feasibility study still underway

 

      Gladstone Iron and Steele Project

  • Value $2.2 Billion
  • 1,500 Construction workers
  • 1020 operational employees

 

      Gladstone Pacific Nickel Limited (GPNL)

  • 2,000 Construction workers
  • 530 operational employees

 

 Expected Population growth in Gladstone based on Medium Scenario :

Population growth in Gladstone

Queensland’s mobile army of workers looking to cash in on jobs in the resources sector has topped 35,000 and forecast to grow by another 25,000 … in what is being described as on of the biggest social and economic movements in the state’s history subjecting cities like Gladstone, Rockhampton and Mackay to growth pressures like never before. Think about the incredible long term sustainable impact these workers will have in the Region, if you still cannot identify the impact and your investment potential then you are one of those that always turn around and say “I should have!”

 

The housing industry is unable to deal with the demand!

 

Median House price in Gladstone in the year 2018 expected to be $928,000 based on expected population increases and the demand being placed on the ability to supply. Current supply levels are unable to keep up with demand and the gap between build and supply is set to widen as more and more people choose Gladstone as their home. The result is ongoing upward pressure on median house prices and rental yields

 

Gladstone Population Increase

 

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