There were signs of recovery in the Pilbara region in the June 2017 quarter, with preliminary data for the three months to June indicating that Port Hedland and the Karratha Urban Area experienced positive results across a number of key market indicators, according to the Real Estate Institute of Western Australia (REIWA).  

Data from Landgate showed that sales transactions in Port Hedland were up 18% in the June quarter, while the median house price in the Karratha Urban Area was up 7.1% to $300,000. 

Hayden Groves, president of REIWA, said Port Hedland and Karratha had faced their share of challenges as a result of the slowdown in the resources sector. However, the emerging signs of strength were encouraging.

“In Port Hedland, transactional activity improved across most price ranges, with the biggest spikes occurring within the $150,000 to $500,000 range,” Groves said. “Despite the increase in activity, Port Hedland’s preliminary median house price did soften in the June quarter to $220,000, which can be attributed to a reduction in sales in the over $600,000 price range.

“In the Karratha Urban Area, the lift in median house price was due to an increase in sales occurring in the $360,000 to $725,000 range, which pushed the regional area’s median up.”

Both towns also experienced significant reductions in the average time it took to sell a house in the June quarter.

“The improvement in sales transactions in Port Hedland had a positive effect on the average amount of time it took to sell a home, with the area’s average selling day figure reducing by 21 days over the quarter,” Groves said. “Similarly, the improvement in median house price in Karratha Urban Area translated into its average selling days figure, reducing by almost 30 days, which is very substantial.

“The Pilbara region will be one to keep a close eye on, especially considering planned investments in the iron rich province is strong. The proposed developments in port and rail infrastructure is estimated to create approximately 3,300 jobs, which would bode well for the region’s economic growth and ultimately produce positive flow-on effects to the property market.”                 

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