There is a silver lining to Metro Builders collapse
THE collapse of local building company Metro Builders has left contractors out of pocket and customers with incomplete houses.
But one coastal real estate agent says there may be a silver lining despite the storm.
Principal of @Real Estate, Natalie Gesler, who has her finger on the pulse of the Capricorn Coast property market, says established homes for sale were being compared to the unsustainable low house and land packages advertised by the recently closed Metro Builders.
But now, under new circumstances, building prices should hopefully return to a sustainable level, allowing the established home market room to grow without having to compete against the lure of a new home for less, she said.
Mrs Gesler felt for all of those affected by the closure of Metro Builders.
She said she could see that while many would be struggling with the flow-on effect of the closure, there was a positive upside for the local property market and building sector.
"We have been talking to a couple of local builders who are working with the Queensland Building and Construction Commission to take over projects and see them through to completion,” she said.
"This should be a great boost for local builders, their contractors, trades and suppliers and will hopefully keep the local construction industry strong.
"However, the biggest benefit is likely to be the local property market.”
Mrs Gesler said over the last six months the mid-range $350,000 to $450,000 market has shown signs of improvement, fuelled by a shift in supply and demand.
"Buyers now have significantly less homes to choose from under $400,000 and are having to broaden their search and look at a higher price range,” Mrs Gesler said.
"For example, in Lammermoor in January 2018, the median house price was $442,700 and in June 2018 it is now $561,800. Average rent has also increased by $10 per week and the average days of market decreased from 96 days to 77 days during this time in Lammermoor according to RP Data.”
Another example was the median house price in Pacific Heights going from $448,750 in January to $543,000 in June this year, she said.
However, there has been a limit to the level the mid-range market could grow as established homes for sale were being compared to the unsustainable low house and land package prices that were widely advertised by the now closed Metro Builders, according to Mrs Gesler.
"This is great news for property prices on the Capricorn Coast.
"The closer of such a prominent business has a huge effect on the local community and economy, resulting in tough times for many, however something positive is coming from it at the same time.”