Boring old shed creates major bidding war in CQ town
FROM the outer, it looks like a boring old shed on a vacant block of land.
It is in a sense. Yet this industrial shed in Blackwater created a swarm of activity via a bidding war between two southern buyers last month.
The 450sqm shed at 14 Jarrah St, was sold at auction for $550,000.
With a healthy amount of interest pre-auction, the two bidders went neck and neck for the package, pushing the price upwards.
The first to crack went immediately on to purchase a neighbouring package at 4 Jarrah St, for $690,000.
Ray White Emerald agent Mark Muldrew said "without a doubt” the sales showed good signs of things to come for the region.
"The auctioned one had quite a few registered bidders, it was pretty healthy,” Mr Muldrew said.
"The purchasers bought it to operate out of. So clearly there is stability coming back to the industry.
"Confidence is returning, we have had a good month of sales and have seen an increase right across the Highlands.
"Two years ago it was very up and down but the boom and the bust is behind us.
"I know BMA Blackwater is going very well... the demand for coal is still as strong as ever. I think the next couple of years will see similar growth.”
It is no coincidence the timing of the two sales is linked to the national buzz happening just hours north.
Heron Todd White property valuer Kym Des Jardins said the sheds went for higher prices than she anticipated.
"It is good to see the confidence returning, those two buyers were very keen to acquire something,” Ms Des Jardins said.
"The bids were hotly contested ones and the loser went straight over to buy the other one.
"I have been told that one of those buyers was out in Blackwater for the last boom and has returned.
"If they're buying here they must have a reason. We hear about companies around town re-hiring and there is a general feel of some renewed confidence in the market. It is not necessarily due to Adani.”
After speaking with various agents, Ms Des Jardins, who covers Rockhampton to Emerald, said there was a lot of activity for quality investment - those with strong tenants.
"Agents are saying there's been plenty of southern investors buying up as they can't get the same return as big cities,” she said.
"Those sales are definitely coming through. Investors are not looking at vacant properties as there is too much risk about getting a good tenant. But quite a few owner-occupiers.
"The increased market activity has a lot to do with the increase in coal prices, and we consider that market conditions still remain volatile in Emerald and the coal fields.
"Some of the sales have gone to locals but the auctions definitely attract southern investors.
"There is opportunity in the region in the sub-$2 million for locals to get their hands on.”