While this piece of news presents a turn for the worse, the lower prices may actually prove to have a favourable counter-effect considering how, in the real estate world, one of the main principles to uphold is 'to purchase when prices are low.'
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Perth, WA (PRWEB) February 03, 2015
Indeed, the only constant thing in this word is change, and this apparently is the case in the real estate industry of Australia and all around the world. In Western Australia, specifically, the mining slowdown in the region has created a tidal wave effect in the region, hitting all the other industries within the business sector, as well as impacting the standard of living of the locals.
Clearly demonstrating the region’s economic decline is the town of Karratha. A report released by the Property Observer on the 26th of January 2015 shows that in 2013, Karratha was rated "severely unaffordable" for the middle class sector with a median price of $775,000, 4.9 times the then median salary of $156,700 (http://www.propertyobserver.com.au/finding/residential-investment/suburb-spotlights/39616-karratha-cheaper-but-one-of-australia-s-most-affordable-towns.html). These days, however, according to the latest International Housing Affordability Survey, which used the data provided by the Real Estate Institute of Western Australia or REIWA and other sources, Karratha is one of the 51 most affordable towns not just in the state but also in the entire country.
While this piece of news presents a turn for the worse, the lower prices may actually prove to have a favourable counter-effect considering how, in the real estate world, one of the main principles to uphold is “to purchase when prices are low.” The discounted prices of residential properties, stated in the same report, average at anywhere between 9.3% to 22% (http://www.propertyobserver.com.au/finding/residential-investment/suburb-spotlights/39616-karratha-cheaper-but-one-of-australia-s-most-affordable-towns.html) and will certainly prove advantageous to those who have the financial capability to make the purchase now. It is likewise worth pointing out that the current conditions can satisfy the insatiable desire of foreign investors, especially Chinese buyers who, according to the January 15, 2015 article of the China Spectator, remain to be the biggest investors and are perennially on the lookout for real estate provisions in the Australian market (http://www.businessspectator.com.au/news/2015/1/15/china/chinese-interest-australian-property-grow).
According to REIWA, Karratha property values may have taken a massive hit, but it remains to be an ideal community to invest in for it continues to reflect the high standards of living upheld by many of its original dwellers. Therefore, it is expected to still generate a great amount of interest from both local and foreign investors. The lower property prices can actually make it more desirable to buyers, creating the potential for the town to regain the glory it used to have.
For the latest real estate news in Western Australia, more information regarding current provisions up for sale in the region, and up-and-coming real estate developments, the Real Estate Institute of Western Australia’s website is a reliable source; visit http://www.reiwa.com.au.