Real estate valuers Propell predict housing prices will continue to fall across the country’s mining towns.
The study saw significant losses in the housing markets of Queensland, Western Australia and New South Wales over the past few years.
The towns hit the hardest were Blackwater, Moranbah, Emerald, Muswellbrook and Gladstone, Mining Australia
reports. These towns suffered halved property sales since 2011.
For instance, Blackwater’s listing was around 200 houses last year, but only 12 units were sold. Prices in the area were also down by 36%. A further 8% to 15% is expected to fall this year for Blackwater’s real estate.
Despite being on the top six losers, Gladstone, along with Mackay and Townsville, are expected to have steady prices this year. WA’s Geraldton is also not expected to shift.
The Propell report only named Kalgoorlie with the potential to show growth among its mining-rich counterparts, with 5% improvement to median housing prices expected due to the anticipated recovery of the gold price.
“Buying a house in a mining town is not so much a real estate decision, as a futures play on the global commodities market,” Propell said, adding that property investment in mining towns is “a high risk play over factors well beyond the control of the freeholder”.
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