New research has found that property prices halved in many mining regions over the past decade.
Property Investment Professionals of Australia (PIPA) chairman Peter Koulizos used CoreLogic data to calculate the best and worst performing areas over the past 10 years.
“West Australia – which benefited the most from the mining boom – has also suffered the most from the mining bust. There is a very long list of under-performing mining towns in WA, but the worst is South Hedland, a suburb in Port Hedland, where house prices fell 74.8 per cent.
“Newman came in a close second to South Hedland, where the median house price was $501,000 in 2008 and not it is only $147,000.”
Queensland mining towns and suburbs within those towns have also suffered, according to the data. “Property prices in the mining town of Dysart fell a whopping 77.4 per cent, while at the same time Brisbane house prices increased by 24 per cent.”
House prices in the mining town of Roxby Downs in South Australia fell by 36 per cent, according to the data, plus the number of sales has fallen significantly.
“It’s important to understand that buying property outside of capital cities still makes financial sense. In fact, there are many regional and country areas that are deserving of your investment dollars,” Mr Koulizos said.
“The moral of the story is that successful property investment is about long-term economic fundamentals, not supposed short-term financial gains.
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