Focus on Dalby

In 2008 local farmers produced a record grain harvest. The new Dalby Bio-refinery has become one of Australia’s first grain to ethanol plant and one of the nation’s largest consumers of grain. The new Mort & Co 50 000 head feedlot at Grassdale is now operating and will add significantly to local demand.

The energy sector is forging ahead with two new gas fired power stations located at Braemar near Dalby and in a world first, Carbon Energy P/L recently demonstrated its green credentials by producing ‘SynGas’ – an extremely versatile, low emission fuel for power stations which can be further transformed into a zero-emission hydrogen for use in fuel cells, turbines and transport.

Coal seam gas production from local gas fields is also expected to supply Asian markets through an $8 billion LNG plant to be constructed near Gladstone.

A Nice Problem to Have

As a result of investing millions of dollars on growing their business and ramping up their workforce, a gap has appeared in the local housing market. Energy companies are renting houses and units on a year to year basis for their employees and are happy to pay a premium for quality rental properties which meet their high standards.

This increased need for housing shows strong growth for 2009 with serviced residential house blocks now selling from $149,000 and it is these energy companies that are driving the market.

And with demand for labour in the energy and mining sectors high, call for investment properties should remain strong for many years to come.

The Future is Bright

The face of Dalby is also changing with a main street refurbishment being completed and commercial developments underway around the town.

A further milestone in Dalby’s growth will be the expected completion in 2012 of the 210 km Wandoan to Banana railway which will see Surat Basin towns linked to the port of Gladstone providing a transport corridor for a new wave of coal mining in the Dalby region.

This potential for the transport industry, combined with the explosive growth in mining and agriculture, has the potential to more than triple the gross regional product within the Dalby region which already produces almost 10% of the gross domestic product for Queensland.

As the region’s economy builds, residents and investors are expected to benefit from the opportunities and development occurring within local communities and industry.

Opportunity and Lifestyle

Within this growing economy, increased pressures on the labour market are reflected in low unemployment figures. The Dalby region's unemployment rate for the June Quarter 2008 was 3.1%, well below Queensland (3.7%) and Australia (4.2%) averages. The median house price was $225,000 in the year to June 2008, an increase of 7.7% and vacancy rates are at all time lows with average rental returns of around 5.3%. Despite increased median value of 176.3% over the past five years, the region's median house price is approximately 54.5% below those in the Brisbane metropolitan area and compare favourably with median house prices in Toowoomba, Lockyer Valley, Goondiwindi and South Burnett.

The region's residents enjoy the benefits of relaxed country living, friendly and active communities without the pressures of time or traffic congestion experienced in city centres.

Adam Gilbert is an accredited Property Advisor with the Property Investors Association of Australia (www.piaa.asn.au). For more information visit http://www.residualwealth.com.au.