Over the last few years, Gladstone, the mining port town of north Queensland has shown unprecedented growth. Both from a rental perspective and from a capital growth perspective as well.

But is that growth due to slow down?

As any smart property investment advisor will tell you, growth in investment property all comes back to supply and demand.

Demand

While the demand for Gladstone still remains strong, it could soon be falling with many mining companies starting to focus on more fly in/fly out employees when the projects turn from the construction phase into the production phase. With a fall in demand and not reduction in supply both rents and prices of investment properties will slow.

Supply

If we can can couple a reduction in demand with an increase in supply, then Gladstone investors may be facing hard times. It is from the supply side the greatest negative threats could come. Devine’s $1.4 billion housing projects is now in its’ second stage and is due to bring almost 3 000 new houses onto the market. While this is a positive for buyers looking to living in the area, this may be a future problem for property investors as it could lead to a reduction in rents and values.

The above highlights the importance of research and getting the right property investment advice.