Real Pain - Australian Mining Towns

I think the peak in mining was around 2012/13, slip slide since then.
Stats via google, median house stats.

I do know someone who purchased a commercial property at peak in Blackwater, cash cow, not sure what has happened now to this town??? Anyone

Karratha, WA
Median House Price 2012 - $1,000,000
Today - $440,000

South Hedland, WA
Median House Price 2012 - $889,000
Today - $370,000

Port Hedland, WA
Median House Price 2012 - $1,235,000
Today - $450,000

Newman, WA
Media House Price 2012 - $830,000
Today - $165,500

Moranbah, QLD
Median House Price 2012 - $740,000
Today - $200,000

Blackwater, QLD
Median House Price 2012 - $360,000
Today - $187,500

Gladstone, QLD
Median House price 2012 - $475,000
Today - $340,000

 

Hi MTR,

Thanks for posting these stats.. I've never really watched mining towns, but I was aware they had taking a decent hit in property values.. These figures really put it in perspective.. Just wow!!

Poor people getting burnt from this.. Life changing..

 

hard to recover when you take 50% hit in value, you can't sell, but the killer is that's rents have also dropped 40%+

 

Great post
Shown in this way ...did not realise the hit was so hard

 

Disaster for those who purchased at peak.

 

Looks like Newman is worst off?
Marg

 

This is why I am intrigued by Karratha. 60% drop in asking price, yields back up to 8-10% (apparently) and vacancy rates now dropping to 4%.

 

WOW. This really puts in perspective what people are talking about.
I really feel for those that bought at the top of the market.

 

Could be brilliant! Could also be a disaster.

I'd only do it if I could afford to lose.


Got a mate in Gladstone who bought a brand new mcmansion for 650k... .

He told me the other day that he'd be lucky to get 300 for it now. It's a PPOR so not the end of the world.....but not exactly fantastic either.....

Actually even in Darwin....I've got mates who bought for 550k and now would be lucky to get 350k.....

 

Did he buy in boom or gloom? I would only buy in gloom

 

Boom! What could possibly go wrong?

 

We painted this drill destined for a mine in Blackwater. House prices might be dead, but exploration there is alive and well.

Coal prices are at boom levels at the moment, just no positive sentiment after the last infrastructure boom. Adani is a go ahead, and mines are trying to pump out as much as they can taking advantage of lower cost production and decent pricing.

Companies that have survived until now are well poised to make decent coin. Id say investing in business will return far more than investment in property in these areas.

pinkboy

 

would need to consider how long it takes to rent property, seems to be plenty of choice, 140 properties for rent on realestate.com
totally different story to boom days.

also still reliant on one industry which has tanked, equates to high risk regardless of yield, and growth? won't be seeing this anytime soon...oversupply

 

I think that regardless of any upturn in mining activity, it will take a long time for confidence to return to investing in mining towns.
The events of the last few years have shown just how badly, and how quickly, things can go very wrong, and memories will be slow to fade.
Marg

 

Any one been to one of these towns to give a first hand info

 

I'm having a lot of difficulty trying to summon up any feelings of sorrow. Mostly I see this as being a result of either greed or ignorance. Even a 9 year old can google "pitfalls of investing in mining towns".

 

I wonder why ppl would pay a million on a house back in 200 when it's only 200k several year prior

 

Yes which is exactly why I believe buying in the gloom could be a good investment. Human nature will repeat and you could easily sell out at a multiple of purchase. The question is when though.

 

Newman looks like it has had the biggest dip, but upon checking I believe most of the houses that are currently for sale in the 100-200K space were built recently and are on small plots of land. (200-250sqm)

Thus, they aren't really much value compared to similar houses in other rural towns.
(ie : In Mildura you could get a house a few years old on 400sqm for $230Kish on the bad side of town)

 

I know it may be silly, but buying anything with the name blackwater is probably worse than backwater.

Looks like Gladstone is not so bad.

I wonder if it is time to buy in on some places, commodities rising.