Property prices and sales volumes have risen in a number of mining towns in Queensland and Western Australia over the past 12 months boosted by the upswing in commodity prices.
Speaking to Realmark Group Managing Director, John Percudani he said, “The latest Core Logic reports show significant values and sales volume uplift from what was extremely low levels, prices have fallen a long way off where they were in the boom, making for cautions future investment. The new resource mining projects will boost the local economies aiding these figures.”
Investors who held on to their properties in Port Hedland are now enjoying an impressive 12.5 per cent gross rental yields.
Vacancies have also seen a dramatic fall, pushing rents higher and setting the foundation for the markets to recover. Said, John.
Speaking with Realmark Karratha Associate Director, Jordan James he stated, In the Karratha based market tenant inquiry has been overwhelmingly strong and we are leasing properties before they become vacant from the previous tenancy or without advertising the property for rent. In the sales market, we are noticing more buyers enter the market as rents and the costs of living increase which is creating more competition and opportunity for sellers to secure higher sale prices. Its become less about how can we get the property sold and more about ensuring we achieve maximum return for the vendor”
The rental markets in Ravensthorpe and Kalgoorlie are also recording low vacancies and relatively high returns.
There's also a strong push in Western Australia for mining companies to avoid FIFO workers and to increase their requirements for permanent residents.
If this is successful the mining towns may see some transition from the rental market to property purchase.