Mar­ket sta­bil­i­sa­tion seen

Pilbara News - - Pilbara Property - ■ Louise Alling­ham

Hous­ing prices in Kar­ratha and its sur­round­ing ar­eas have plum­meted by half over the past cou­ple of years, but ex­perts are re­main­ing pos­i­tive about the fu­ture.

Real Es­tate In­sti­tute of WA Kar­ratha branch chair­man Richard Naulls at­tributes the drop to an un­sus­tain­able mar­ket.

“It was too ex­pen­sive and the town couldn’t af­ford to have prices at that level,” he said.

Mr Naulls said the mar­ket had sta­bilised, which had prompted more ac­tiv­ity.

“Since prob­a­bly Au­gust last year, in 2015, we’ve seen a sta­bil­i­sa­tion so it’s been quite pos­i­tive, in the re­gard of the num­ber of leases be­ing taken up and also the num­ber of houses that have been sell­ing,” he said.

First Na­tional Real Es­tate li­censee Rita Pahl is pos­i­tive about the mar­ket sta­bil­i­sa­tion and said now was the time to buy.

“Prices are where they should be,” she said. “The mar­ket is great. Rents have come down, but rents are still good.

“Peo­ple are still get­ting good rental re­turns com­pared to Perth.

“In­stead of it be­ing a tran­sient pop­u­la­tion that Kar­ratha has been be­fore, it’s stabilising the town — with all the peo­ple that are buy­ing and with the fam­i­lies that are mak­ing their home in Kar­ratha — that’s great for the busi­nesses, schools, shops, work­places, ev­ery­thing.”

Al­though the drop is bad news for those sell­ing, the big­ger pic­ture re­veals the Pil­bara mar­ket is turn­ing into a more tra­di­tional one.

“I think we’re in a more tra­di­tional real es­tate mar­ket so I think we’ll just stay sta­ble and plateau for the next 12-15 months.

“Af­ter that time I think we’ll start see­ing some slow growth back up­wards,” Mr Naulls said.

Pic­ture: Getty Im­ages

Hous­ing prices in Kar­ratha and sur­round­ing ar­eas have fallen by half over the past cou­ple of years.

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