Easing of property values in the Surat Basin locations of Dalby, Chinchilla and Roma is likely to occur following recent news of approximately 1,000 job losses as Queensland’s gas boom gets wound back. News that representatives from Origin’s human resources department flew in to town this week to notify workers follows similar job shedding by Santos a couple of weeks ago.

Property markets in the Western Downs had already been easing over the last twelve months, especially in Chinchilla where the median value has declined by 7.1%.  Sales volumes have fallen and vacancy rates are already above the accepted ‘norm’ of 3%. It isn't that many years ago that people would regularly ask Propertyology about investing in Surat Basin towns of Roma, Dalby and Chinchilla. The gas boom was gearing up and the increased workforce in the area was expected to put pressure on housing.

Propertyology did concur it was likely that property values and rents would rise as a result of the increased workforce. And rise they did. Median house values over the last five years have increased by 14.3% in Dalby and Chinchilla and by 25.8% in Roma. Average annual growth over the last decade of 8.6%, 12.4% and 11.2% is spectacular!

The Western Downs’ $2.8 billion economy grew by 5.8% in 2012/13, more than Queensland’s 3.6%. Gross regional product per capita of $87,487 was also significantly higher than the state’s $64,593. Employment in the region has been very healthy. Propertyology’s reluctance to invest there was based on the fact that the nature of the jobs (drilling gas holes) was short-term and that there was an unhealthy reliance on just a couple of employers. 

Moreover, these communities are small in size, low on infrastructure, and have inherent challenges retaining their youth (essential for sustainable population growth). While many of the workers who get laid off will be living in accommodation villages, the will be a direct impact on local business. 1,000 job cuts will hurt these townships with a combined population of 40,000 people.