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The Suburb Next To A Booming City
Gracemere is experiencing a ripple effect from the economic growth and profile of the Rockhampton Region.
Finding Investment Suburbs For Under 450K
Gracemere is experiencing a ripple effect from the economic growth and profile of the Rockhampton Region. All indicators are showcasing that right now is the best time to enter the market.
Suburb Details:
Suburb | State | Postcode |
|---|---|---|
Gracemere | Queensland | 4702 |
Gracemere is next to a booming suburb Rockhampton and with it only being a 10 minute drive from Rockhampton it is primed for strong capital growth in the next 3-5 years. This suburb has low supply, high owner occupier levels and a decreasing days on market metric indicating that it is primed for growth. Rockhampton has seen growth over the past 3 years and that is having an interesting effect on a suburb like Gracemere called the “Neighbour Ripple Effect”. In addition to that there are micro trends that indicate that an investment property bought in this suburb is a “set & forget”.
A Few Properties Available Under $450k
Key Data Metrics
Metric | Actual | State Metric |
|---|---|---|
Days On Market | 48 | 54 |
Stock On Market | 0.91% | 5% |
Vacancy Rate | 0.48% | 2% |
Current Population | 12,604 | - |
Online Interest | 77 | 97 |
Vendor Discounting | -3% | -6% |
Proportion Of Renters | 38% | 10% |
Location & Infrastructure
Gracemere is only 10 minutes from Rockhampton by car making it an extremely small distance away from the region’s central hub. This connected by one main highway “Capricorn Highway”. There is a reasonably large shopping complex in Gracemere which has the main goods like Woolies, Pharmacies, Post Office otherwise “Stockland Rockhampton” will be the option for all other essentials. The suburb has primary schools in the area however it does not have a secondary school and it has very poor public transport to and from Rockhampton. There also appears to be congestion sometimes on the main road towards Rockhampton. In addition to this Gracemere does not have a major hospital, that means you will have to travel to Rockhampton hospital for any major incidents (which isn’t too bad 10 minute drive). A lot of the strong infrastructure remains in Rockhampton and has not flowed down to Gracemere however it is the infrastructure in Rockhampton which makes Gracemere appealing. Note there is also an Airport about 20 minutes away which can be great for accessibility!
Other Important Factors:
Building approvals remain incredibly low as suburb demand continues to increase. Despite having large amounts developable land in Gracemere the number of houses actually being built will not curb the demand for the foreseeable future.
Rockhampton’s region’s Gross Regional Product (how much wealth businesses generate) has been steadily increasing with healthcare, agriculture and mining sectors having the biggest growth. Construction and manufacturing are also driving the economic centre of the suburb.
Rockhampton's business community is thriving, with a record number of nearly 6,000 businesses registered. This surge reflects strong confidence in the city's economic climate and market potential.
Vacancy rates are incredibly low sitting at 0.48%, meaning demand will remain high and with extra interest in towns. And the “Days On Market” is trending downwards meaning that the market is starting to heat up.
Nearby Major Projects:
Alliance Airlines New $60M Repair Centre
Rockhampton Ring Road Underway In 2023
Fitzroy to Gladstone Pipeline $983M Project
Australia - Singapore Military Training Initiative
Why Buy Under 450K?
The reason I started I looking for properties under $450,000 is because it takes forever to save enough cash for the average worker. With about $45,000 (10% Deposit) and paying Lenders Mortgage Insurance (LMI) you can enter the market today in a regional location. And when you pick the right property in the right location you make some serious equity!
Example Property:
Metric | |
|---|---|
14 Kerrie Meares Crescent, Gracemere QLD 4702 | |
Purchase Price | $375,000 |
Stamp Duty | <$20,000 |
10% Deposit | $37,500 |
Expected Rental Price | $450-500/Week |
Expected Rental Yield | 6.24% |
Potential Growth Per Year | 6.8% |
*Note: These calculations are purely estimations, but overall numbers will vary depending on your deposit, interest rates and other factors.
Pro’s Of Investing In Gracemere
Days On Market is trending down.
Strong high quality investment properties available (double brick homes).
10 minutes from the CBD off the region.
Severe undersupply and low building approvals → strong demand.
Strong rental yields with strong future capital growth.
Out of the flood zone unlike other suburbs in Rockhampton.
Con’s Of Investing In Gracemere
No secondary schools in the area
Poor public transport can reduce liveability of the area.
There isn’t much online search interest.
Ultimate Verdict
Back in 2020 Gracemere faced a massive oversupply of properties due to developers. You can see that on SQM Research that property prices stalled and even dropped by a little bit while other suburbs experienced high growth during the Covid Boom. However today this is no longer the case, there is a serious undersupply with almost all trends pointing in the right direction. DOM is trending down, supply is incredibly low and there aren’t enough building approvals to kerb demand. In addition Rockhampton’s economic growth is trending upwards with great infrastructure projects. The number of businesses being registered is increasing meaning stronger job growth attracting more people to the region. This will have a ripple effect and flow down to Gracemere causing prices to grow. The suburb is trending upwards and now is a good time to get into the market, this time next year the minimum price to enter will be $500k.
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Disclaimer: The information provided in this article is for educational and informational purposes only. It is not intended as financial, legal, or professional advice. Always do your own research and consult with a qualified professional before making any decisions. The opinions expressed here are solely those of the speaker and do not reflect the opinions or views of any other organization. By using this information, you agree that the creator of this content is not responsible for any financial or other losses you might incur.
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