Advice on Selling or Keeping a property

Hey guys, quite a long post to come, any help really appreciated. For your info, I am planning a buy and hold strategy, I also have just bought a property in Townsville.

I have a property in Gracemere, QLD, it is quite an old property (as in no depreciation claimable for building costs.). This was a pushed decision before I had a clue on property investing. It is a 4 bedroom split level weatherboard/Hardiplank home on 1000m2, I bought it in September 2005 for $272,000 (I had to pay around 9,000 for stamp duty and solicitors fees, and 16000 deposit and LMI), it was valued in November 2007 for $305000, and just recently before buying my second property it was valued at $295000. Oh, and it is just about to go up in rent to $250 a week.

You can now buy Brand new 4 bedroom brick homes for around $350k to $370K getting 340 to 370 a week rent, on over 600m2.

In Gracemere they have just started building a Shopping centre which isn't too far away from my property. There is supposed to be other development going on around there but I don't think any of it is confirmed.

My question is this, I am considering fixing for a year until the shopping centre is built, but I am not sure if I should keep it because I can't get depreciation and I don't believe it will rise to say 330K in the next year. I don't know if I should sell it and cut my losses, save up for another better investment or wait for the 12 months to be up. At the moment it has cost me $327000 to date (including stamp duty, interest on loan etc) and total value (including rent etc) is about $322000.

Because I believe it won't grow all that much, I am considering taking the advice of the seasoned investors and cutting my losses for a better investment.

Any help?

Thanks,
Sizygy.

P.S I have no trouble servicing both debts, it is purely a question regarding to whether it is worth keeping or buying a better property.