Home News Mining towns doomed with falling housing prices, study says

Mining towns doomed with falling housing prices, study says

Font size :
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”.
 

Whether you are looking to buy your first home, move home, refinance, or invest in property, a mortgage broker can help. Access loans from all the major lenders, get help with paperwork – plus there is no charge for this service. Get help from a local mortgage broker

Mortgage News and Articles

House prices return to more affordable levels in mining towns House prices return to more affordable levels in mining towns

While the end of the mining boom has had a negative impact on property prices, homes in the region have become more affordable Read more

Borrowers should anticipate a possible rate hike Borrowers should anticipate a possible rate hike Some experts advise borrowers to look for a fixed loan that allows extra repayments so that they can whittle down the balance sooner ... Read more

Why choosing the right mortgage is hard for first-home buyers Why choosing the right mortgage is hard for first-home buyers Many feel overwhelmed by the sheer range of products and interest rates on offer, a new survey reveals ... Read more

Mortgage applications drop in second quarter Mortgage applications drop in second quarter This marks the “beginning” of a downward trend, says Equifax executive ... Read more

More mortgage news and articles

Sponsored Links

Thursday, Jul 27, 2017
Top Featured Rates
Top Bank Rates

Get help choosing the right home loan

Whether you're a first homebuyer, looking to refinance, or investing, it's important to have the right loan for your needs. Just fill in a few details below and one of our trusted mortgage advisers will contact you.

A quick & easy way to find the right home loan
  • Purpose of mortgage
  • Household Income
    $
  • How much do you want to borrow?
    $
  • How much deposit do you have?
    $
  • How much is your house worth?
    $
  • How much do you still owe on your mortgage?
    $
  • What type of mortgage do you have?


  • How much is your new home?
    $
  • How much do you want to borrow?
    $
  • How soon do you want a mortgage?
Next
  • First name
  • Last name
  • Where do you live?
  • Phone number

Special Offers

Related Keywords