Mining towns start to suffer
One mining area has seen drops of $25,000 over the September quarter, according to recent sales results.
On the back of negative media publicity and resulting subdued buyer sentiment, the Pilbara saw the average median price plummet to $825,000, according to latest sales figures from Crawford Realty.
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This correct has, however, been “expected”, according to Ryan Crawford, director of Crawford Realty.
He pointed to a similar trend in 2008 when negative publicity about the GFC resulted in a temporary decline in the Pilbara’s prices. They then saw a rebound in 2009.
“The reality is that there will continue to be huge investments in the state’s resources sector, but the decision making process of property investors is influenced in the short term by negative media sentiment,” Mr Crawford said.
“We expect a similar trend [to that seen in 2008] to occur during the coming term with market conditions to remain subdued in the Pilbara property market for a number of months until new resource infrastructure projects begin construction in early 2013 resulting in an upswing in the local property markets.”
Sales numbers also dropped, from 75 on Crawford Realty’s books over the June quarter, to 69 over this quarter. Median weekly rents have also stabilised after a rapid growth phase in both Hedland and Newman.
