Property values in an investment hotspot have shot up by $50,000 over one quarter, a leading real estate group claims.
The June 2012 quarter recorded a record result for the Pilbara region, which saw prices shoot up to an average of $850,000, according to Crawford Realty.
Over the quarter, 75 properties were sold throughout the region, including in South Hedland, Port Hedland, Karratha and Newman.
As the ‘hottest property market in Australia,’ according to managing director Ryan Crawford, investors are seeing rents in South Hedland of up to $2,000 on a $700,000 property.
Pointing to surging rents, due to a zero vacancy rate and a constant influx of workers, Mr Crawford said that the area is a ‘pressure cooker’.
“For astute property buyers wanting to lock into a future growth area in the Pilbara, then Karratha is the standout location.
“Weekly rents and property values have eased over the last six months in Karratha due to a temporary lull in construction activity in the area. It is now a buyers market in Karratha,” he said.
“However, the Karratha market is expected to bounce back strongly during the coming year due to the expansion of Cape Lambert and other new resource projects coming so buyers have a short window of opportunity to secure a well priced property.”
Properties in South Hedland, the ‘epicentre’ of home sales in the Pilbara, are taking just five days to sell on average, he said.