Emerald market bumps the trend in property downturn
EMERALD is worth your wage.
After months of uncertainty in the property market with slumps in house prices and low rental returns due to the mining downturn, Emerald has been listed as a prime investment spot.
It is one of the top 17 locations in Queensland, because of its population growth, long-term rental income and diversity of industries.
"Obviously we have gone through a slowing of the market in recent months in line with the mining industry, but the future of investment in the town and the market in general is coming back strongly," Emerald Real Estate principal Jason Campbell said.
"I've had investors here on Friday. They're not just looking for a quick positive cash load in return, but sustainable growth across the board.
"Emerald is a sustainable market.
"They're seeing the downturn as short term.
"Compared to coastal areas and larger cities, people are looking for the shining parts of the country, and Emerald is one of them."
Smart Property Investment's Jennifer Duke said regional areas were growth hotspots in its 2013 Fast 50 report.
"(Regional areas have) typically been overlooked by owner occupiers in the past who have historically bought closer to the cities," she said.
"Emerald's vacancy rate of .05% is also attractive in combination with strong population growth expectations and rental returns in excess of 8%, or $650 a week for houses."
The report focused on population growth, demand for housing, income levels and vacancy rates throughout Australia.
Ms Duke said the market was largely determined by the coal industry, but a deeper understanding of the specific market was important.
"Mining giants, such as BHP, have listed reasons why mining may slow, (such as the) high Australian dollar, high development costs and decrease in commodity prices, but have also said they will continue with existing projects."
Ms Duke said the Emerald market would continue to strengthen.
CD Adams owner Clinton Adams said this didn't mean prices would go through the roof again.
"That's the question we've been getting a lot at the moment and we've had a correction in prices because it was becoming overheated with rental prices which limited many opportunities for people," Mr Adams said.
"But the prices we're getting now, investors are saying it's still better than where they're living in larger areas.
"The reason we're on the list is because we've got diversity. We've got mining, our cattle and farming.
"People have realised regional areas like Emerald are worth taking a chance on."