Karratha or South Headland
- Thread starter myrtle
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I've heard Karratha rents have dropped a bit now Gorgon construction is winding down. Still obscenely high rents though.
Don't know about sth headland returns, although have had family live in both south hedland and Karratha and they much preferred Karratha.
The govt is actively trying to ease the housing shortage in Karratha with more land releases and workers accommodation which might put more downward pressure on rents. Many rents are 3 yr terms and you might find on renewal the company/govt may not be willing to renew at old rate.
Don't know about sth headland returns, although have had family live in both south hedland and Karratha and they much preferred Karratha.
The govt is actively trying to ease the housing shortage in Karratha with more land releases and workers accommodation which might put more downward pressure on rents. Many rents are 3 yr terms and you might find on renewal the company/govt may not be willing to renew at old rate.
there is also alot of land being released in port hedland http://www.landcorp.com.au/project/atholstreet/ also hedland dependant on two main sources. iron ore (bhp fmg) and salt (rio).
where karratha has oil, gas, iron ore and salt.
pretty sure there is land being released in karratha as well. updated city center. gov target population of 50000.
pretty sure there has been a few threads on here about karratha or hedland.
where karratha has oil, gas, iron ore and salt.
pretty sure there is land being released in karratha as well. updated city center. gov target population of 50000.
pretty sure there has been a few threads on here about karratha or hedland.
The java van at the tourist centre (if its still there) does a decent coffee.
IIRC, Karratha rents have come off 20-25% from the peak and thus prices have probably come back a little less with the yields dropping back to about 8%.
The same will probably occur in both Hedlands.
We have property there and one currently rented for $1650 would go for around $1300 now on the open market, a drop of about 20-25%, so there is genuine downward pressure there.
However, that is in the 3BR range where there is plenty of vacancies this size on the market and thus plenty to pick and choose from. The 4x2 range are more in demand and less on the market and might drop 10-15%.
Might be an indication of younger couples moving out and families moving in, with the workforce shifting from construction to operations.
The same will probably occur in both Hedlands.
We have property there and one currently rented for $1650 would go for around $1300 now on the open market, a drop of about 20-25%, so there is genuine downward pressure there.
However, that is in the 3BR range where there is plenty of vacancies this size on the market and thus plenty to pick and choose from. The 4x2 range are more in demand and less on the market and might drop 10-15%.
Might be an indication of younger couples moving out and families moving in, with the workforce shifting from construction to operations.
Seems to be a common theme across the country at the moment Rod. I'm experiencing similar conditions on a couple of properties in CQ.....
All part of the cycle I suppose together with some changes in the respected industries....
Good lot of stats here for the NW property market:
http://www.pdc.wa.gov.au/index.php/download_file/view/522/
http://www.pdc.wa.gov.au/index.php/download_file/view/522/
Gold. Cheers.
I believe so.
This I am sure is old news however I read in the West this morning one of the big players BGC meeting the housing demand in NW, establishing a huge production line.
So how do you think this will impact on prices in the area, as we have already seen a 25% reduction in rents and plenty of properties on the market which do not appear to be selling, I assume the sale prices will continue to drop. Also, I expect older homes in the area will be harder to rent as the new homes will be much more desirable.
Is anyone brave enough to invest in this market at the moment?
Any thoughts on this
Cheers MTR
So how do you think this will impact on prices in the area, as we have already seen a 25% reduction in rents and plenty of properties on the market which do not appear to be selling, I assume the sale prices will continue to drop. Also, I expect older homes in the area will be harder to rent as the new homes will be much more desirable.
Is anyone brave enough to invest in this market at the moment?
Any thoughts on this
Cheers MTR
Thinking about it. South Hedland...
Exactly right aus prop - many people say the prices are too high and look at all the land around the pilbara.
Question - if you were a builder in the karratha would you want to build a house for half the money you could of made in the mines?
No - so as long as there is high paying mining jobs they can release all the land they want and it won't have an effect
Only thing that would worry me would be an influx of transportables - what do they cost to get trucked in and installed up there?
.....the cost is probably around $400 to $550K for a fully specced 4x2 house, the preferred size these days. Add the cost to buy a block (if you can) and there's a total build cost of anything up to $900K just to build. Add in a margin for some profit and the cost to buy is up to $1.0M.
The PH/SH market has historically rented on a 10 to 12% yield even from the early 2000s, so a specced out 4x2 should go for no less than $2000 pw and up to $2300 pw.
A low end 4x2 might get built and sold for $850K and thus rent for $1700 to $2000.
I think the market is in a state of flux, with companies rationalising work forces and lots of properties coming back onto the rental market at probably higher than realistic rents whilst venders trying to sell at unreasonable prices. The release of land with put further pressure on both, but the result is that the there will be a minimum build cost and there will still be a minimum rental price based on historical yields.
If the price of land come in at about say $250K and $500K for a nice house, plus a margin, the total cost may end up being $800 with rent being in the order of $1700 to $2000 pw or about a 20 to 25% drop in current asking for 4x2s.
The PH/SH market has historically rented on a 10 to 12% yield even from the early 2000s, so a specced out 4x2 should go for no less than $2000 pw and up to $2300 pw.
A low end 4x2 might get built and sold for $850K and thus rent for $1700 to $2000.
I think the market is in a state of flux, with companies rationalising work forces and lots of properties coming back onto the rental market at probably higher than realistic rents whilst venders trying to sell at unreasonable prices. The release of land with put further pressure on both, but the result is that the there will be a minimum build cost and there will still be a minimum rental price based on historical yields.
If the price of land come in at about say $250K and $500K for a nice house, plus a margin, the total cost may end up being $800 with rent being in the order of $1700 to $2000 pw or about a 20 to 25% drop in current asking for 4x2s.
they aren't much diff in price to locally built - they still need to be cyclonic, they still need to comply with the same over the top requirements e.g. the metre or so of concrete around the perimeter, they still need cyclonic fences, with a cyclonic store room, landscaped, multiple top spec air conditioners and fans etc etc - any savings get chewed up in the $25-40k freight bill.
Yup. Had a quote on a transportable.
IIRC, base cost was $300K.
After adding all the "options" a lot of which should be included for properties in the NW (AC/tiles/high specs/wash room/cyclone spec etc) the cost topped out at $450K.
Oh, you also wanted that shipped??? That'll cost ya.
