Thanks to Scott No Mates for the old listing website I ran quick search on Port Hedlands neighbor Karratha. A sample property with a rent history indicates how hard investors are having it. The property below shows how far property rentals have come back since the heady days of 2011. Down 32%
http://www.oldlistings.com.au/
9/2 BUCHANAN CIRCUIT, KARRATHA
Category: UnknownBedrooms: 2 Bathrooms: 2
May 2013$950
May 2013$950 Weekly
May 2013$950 per week
May 2013$950 Weekly
May 2013$950 per week
May 2012$1,300 per week
May 2012$1,300
November 2011$1,400 per week
November 2011$1,400 Weekly
November 2011$1,400
Jeez 4Sale now at 341. That's gotta be hurting. That's a lot of properties for a place the size of Hedland
rentals are creeping up ever so slowly at 215… strange.
So to recap. Inthe last 11 months 4sale has gone from 52 – 341. Roughly an average increase of +26 properties per month.
4Rent has gone from 33 – 215 in the same time. Roughly +16.5/month
4Sale – 328
4rent – 219
We seem to have stabilised for the time being. I don't by any stretch of the imagination think this is the end. Boom Logistics has just lost the Nelson Point contract (Freo's have won the new contract) and is pulling their crane division out of the Pilbara altogether. Gravity cranes has announced its first round of redundancies.
Cranes are a good indication of activity both construction and maintenance. Booms used to be the largest cranes services provider by far in the Newman Port Hedland region.
I small mining services friend of ours is sitting on $250k in outstanding accounts and is having to finance the business from personal savings as she tries to recover outstanding debt.
I see this as just the tip of the iceberg at this point. My guess is that many of these mining centric WA towns could revert back to pre 2000 activity levels over the next 18 months.
Our friend is now closing their business (D&A testing) in Nov and leaving town. Her client base has dwindled to just a few companies. In contrast other friends of ours are expanding (auto electrical). Go figure.
Our son is plastering houses and says there is 6 months work there… interesting
4sale = 329
rent = 201
Not a lot of change
I was actually talking to an agent up there and he said he has seen this cycle 3 times in the last 10 years. He believes demand is still very strong.
Corie wrote:I was actually talking to an agent up there and he said he has seen this cycle 3 times in the last 10 years. He believes demand is still very strong.I was there from Apr07 and the market was simply up, no real cycles at all. He/she is simply talking the market up because its as dead as a dodo at the moment.
I was there from Apr07 and the market was simply up, no real cycles at all. He/she is simply talking the market up because its as dead as a dodo at the moment.
The Freckle LOL Hopefully it's chances of rising again are greater than those of the poor Dodo
South Hedland (6722)
Source SQM Research
I wouldn't assume this data is absolutely accurate but the trends are noteworthy.
interesting…
Still 325 for sale and 196 to rent…..
Young fella has left. He's back in Malta and his boss is hunting work in NZ. How the worm has turned.
Friends business is still functioning ….just… but now they have physically left the place she's FIFO. Her husband's business collapsed (light fab engineering and maintenance). It's been bought out by the other part but they'll take a $100k loss which is a small miracle. The partner will go broke eventually but he's a 1st class a'hole anyway so no loss there.
Freckle how’s the economy in Malta? Would love to go back one day.
jmsrachel wrote:Freckle how's the economy in Malta? Would love to go back one day.I wouldn't mind living there for 3 months of the year. That may happen in a few years once I get a few things out of the road here in NZ.
The economy there is OK I in local terms. Wages are extremely low but cost of living is cheap by anyone elses standards. There are a lot of beautiful places in the world that are dirt cheap by antipodean standards.
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