Kar­ratha af­ford­able for hous­ing: sur­vey

Pilbara News - - News -

Kar­ratha is one of the most af­ford­able hous­ing mar­kets in the world, ac­cord­ing to an in­ter­na­tional snap­shot of mid­dlein­come af­ford­abil­ity.

The an­nual De­mographia In­ter­na­tional Hous­ing Af­ford­abil­ity Sur­vey rated Kar­ratha as the sixth most af­ford­able hous­ing mar­ket among an anal­y­sis of 406 ur­ban mar­kets in nine coun­tries in the third quar­ter of 2016.

The coun­tries probed were Aus­tralia, Canada, Hong Kong, Ire­land, Ja­pan, New Zealand, Sin­ga­pore, United King­dom and the United States.

Cities in the USA oc­cu­pied the top five spots and eight of the top 10. Monc­ton in Canada was the only other non-US city to make the list. Real Es­tate In­sti­tute of WA Kar­ratha branch chair­man and Ray White Kar­ratha li­censee Richard Naulls said prices had dropped 55 to 60 per cent in the past four-and-half years.

Mr Naulls said buy­ers were mak­ing use of the bar­gain prices on of­fer at the mo­ment.

“Buy­ers don’t be­lieve or feel the price will con­tinue to drop or that if it does, it won’t be sub­stan­tial,” he said.

“We are see­ing a lot of young cou­ples and fam­i­lies buy­ing, es­pe­cially in Bul­garra and Pegs Creek on those 650-750sqm blocks.

“With a bit of ren­o­va­tion, it is in­cred­i­ble how nice some of those houses are com­ing up and that means the value goes up.”

Mr Naulls said the rental and sale prices would start to go back up in 2018, but not to the same “un­sus­tain­able” heights of the boom.

Of 54 Aus­tralian hous­ing mar­kets sur­veyed only Kar­ratha, Port Hed­land, Kal­go­or­lie and Glad­stone in Queens­land were iden­ti­fied as af­ford­able.

In the re­port, New Zealand Ini­tia­tive ex­ec­u­tive direc­tor Oliver Hartwich said the ef­fects of un­af­ford­able hous­ing on so­ci­ety were be­com­ing more vis­i­ble by the day.

Mr Hartwich said high house prices should be seen as a sign of a city’s fail­ure, rather than that of suc­cess.

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