Mortgage re-possessions are in full swing in Port Hedland as the mining boom moves from the construction to production phases.
According to an article in the Australian Financial Review (AFR), distressed sales abound with older homes and units faring worst.
In an example of the downturn, the paper cited a property on a 928 square metre block in Trembath Street – a mortgage repossession – which has been put on the market for $330,000, a far cry from its 2008 sale value of $605,000 and estimated 2010/2011 mining boom-peak value of up to $1m.
The AFR article said that searches show 382 properties are for sale in Port and South Hedland, where shortages, +10% yields and stories of frustrated workers forced to live in caravan parks abounded a few years ago.
Real Estate Institute of WA figures say median home prices in Port Hedland are down 12.5% from already depressed prices of a year ago.
Not all is gloom, however. The AFR story said that buyers will still stump up for new properties. It cited healthy demand for Cedar Woods Properties’ South Hedland development, Elements.