The resurgence of the resource sector in Western Australia has increased the number of first-home buyer fly in, fly out (FIFO) families. These consumers buy affordable coastal housing, according to Jarrod Rendell, project director for Atlantis Beach Estate in Two Rocks.
The latest state government figures showed that Western Australia has now an estimated $108 billion worth of resource projects in the pipeline.
“Recent announced resource projects include FMG’s $1.7 billion Eliwana iron ore mine, the start of construction at BHP’s $4.2 billion South Flank iron ore mine, a $9.7 billion expansion of the Pluto LNG project, $28 billion for Woodside’s Browse LNG development and a further $516 million expansion at the Greenbushes lithium mine,” Rendell said.
The boost in the resource sector’s investments has resulted in the rise of employment in the mining industry over the last two financial years. The increasing employment opportunities, meanwhile, led to a surge in the number of younger FIFO families buying house-and-land packages at Atlantis Beach Estate in Two Rocks, located in the northern coastal strip of Perth.
“This is part of the general trend of growing first-home buyer activity in Western Australia, with first-home buyers now accounting for 34% of all owner-occupier finance commitments in WA, which is the highest rate for any state in Australia,” said Rendell.
Rendell also said that FIFO-families who purchase land at Atlantis Beach are commonly in their late twenties and are entering the property market for the first time.
“During the first two months of 2019, these FIFO families accounted for over 90% of lots sold at Atlantis Beach, compared to just over 60% this time last year. Back in 2017, FIFO families accounted for just 33% of lots sales at the estate over the same two-month period,” he said.
Lot sales to FIFO families have nearly tripled over the past two years at Atlantis Beach due to the leading employment recovery in the resources sector. This trend is expected to accelerate in 2020 as more new resource projects enter the state market.
Surveys found that FIFO families move to Atlantis Beach because of the area’s affordability, lifestyle, and security. Lots prices in Atlantis Beach start from $135,000, and the community’s features include swimming and fishing beaches and recreational facilities.
