Regional WA property markets have been amongst the worst performing in our nation over the last year, casualties of the mining boom winding down.
The REIWA recently updated its figures for the Western Australian regional markets and produced the following video summarising what’s been going on in these very fragmented markets.
What surprises me most about this video is how the presenter smiles as she explains how property values in some regions have fallen over 20% in the last year.
I’ve always warned of the risks of investing in mining and regional towns which:
- comprise of transient populations that are almost solely reliant on resource project employment and therefore experience large swings in demand.
- are driven by investors buying properties rather than owner occupiers
And many of Australia’s worst property markets over the last few years have mirrored the ups and downs of the mining sector.
You may also want to read: Learn From These Towns Where Prices Boomed Then Busted