Karratha affordable for housing: survey
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.