Hedland continues strong showing
Perth’s rental squeeze and rambunctious homebuying activity is being felt up north, with property in the Pilbara and Kimberley also cheaper to buy than to lease.
Banking giant NAB named Port Hedland, South Hedland, Newman and Broome as locations which have bucked previously boggy market trends in regional WA and shown the strength of the northern tip, led by booming growth in Hedland’s CBD.
According to REIWA, South Hedland has seen a 64 per cent jump in the average price of a home, with values now sitting at around $330,000.
Port Hedland has logged another strong showing, clocking 39.6 per cent in annual growth and $590,000 in median home price.
Buyers in Newman are paying an average of $290,000 for a home, with sellers enjoying a 28.9 per cent spike in the amount they will fetch for their property.
Meanwhile, popular tourist destination Broome recorded a 10.3 per cent annual growth showing and a $480,000 median home value, numbers Hutchinson Real Estate Sales Consultant Shama Vanvaria put down to a rise in population.
“There’s a shortage of rental property in Broome at the moment due to an increase in population,” she said.
“Low interest rates mean more people can afford to buy, so every time we sell a rental property an owner-occupier is moving in.
“There hasn’t been much built here in the last seven years either and prices are still well below their 2008 peak.
“It’s a great time to buy, as the market will continue to move up due to low interest rates, the tourism boom and some infrastructure projects like the new Kimberley Mineral Sands mine at Thunderbird.”
Port Hedland’s property market has also exceeded expectations, with observers previously predicting eastern states fly-in, fly-out limitations would throw a spanner in the works for the Pilbara port town.
However Hedland Property Shop Sales Representative Victoria Thoegersen said a lot of over east FIFO workers moved their families to Port Hedland to avoid quarantine, putting pressure on the property market.
“Rental prices increased rapidly in a very short amount of time,” she said.
“We saw multiple applications for our rental properties, offers above the advertised rental price and a vacancy rate below one per cent.
“So people that had purchased a property for say $400,000 were now able to lease it out for $1000 per week or more.
“Following that, tenants realised they were able to buy a property and pay a mortgage well below what they were currently paying in rent.
“We are still seeing strong demand for purchasing in the area and, even though the property market has increased significantly throughout the past 12 months, it is not too late to get into the market.”
Though prices have surged up north, Ms Thoegersen said buyers should remember that values had been sitting at the bottom of the market for quite some time and Port Hedland was still wandering down a long road to recovery.
Properties were still selling below replacement cost and while land was being sold cheap, homebuilding was more expensive than Perth due to the price of trades, materials and the work needed to make property withstand cyclones.
Meanwhile in the metropolitan area, NAB named Armadale, Greenfields, Port Kennedy, Clarkson and Baldivis as suburbs where homebuying was cheaper than renting.
In the unit market, Perth CBD, East Perth, South Perth, Rivervale, Maylands and Fremantle were also dubbed cheaper to buy than rent, based on the median unit value.
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