Investors have missed the boat on one current mining ‘hotspot’, according to multiple property experts.
Placing Queensland's Gladstone at between 9 and 12 on the property investment clock, Matusik Property Insights’ Michael Matusik recently told Smart Property Investment that while there is still some growth to be had, the major acceleration is over.
“Gladstone is a good example of a market that’s when everyone wants to buy now,” Mr Matusik said.
“Yes, you can buy a good asset in that cycle, but the generic push behind the market is probably exhausted and is slowing down the acceleration. You generally want to buy when the acceleration is beginning to happen.”
Hotspotting.com.au founder, Terry Ryder, also told Smart Property Investment that, despite many investors now showing interest in the region, the savviest of buyers were already in the market 12 to 18 months ago and are now selling up leading to high sales volumes.
“If you buy there now you may still get some growth, but really you’ve missed a lot of the growth that’s happening in Gladstone over a five year time span. For an investor who does proper due diligence and research, [they] would have identified Gladstone in advance of the growth we’ve seen over the last 12 to 18 months,” Mr Ryder said.
“I have included Gladstone going back six years, but certainly two to three years ago, in my reports,” he said, pointing to early indicators about the size of the mining projects as reasons for his quick identification and forecast of growth in the area.
“What a smart investor will be doing, such as in the case of Gladstone, is seeing the media is talking about it and that there’s been a 20 per cent price rise… and then looking for the next Gladstone instead of buying in,” he said, pointing to the size of Australia and the numerous upcoming mining projects as opportunities to get in ahead of this curve.
“But now it’s no longer a future hotspot it’s already hot.”