Mining towns show significant slowdown in dwelling sales activity: RP Data

There were 53 council areas across the country where the number of dwelling sales over the year to March 2013 was tracking more than 25% lower than the five-year average, according to research by RP Data.

Nearly half (47%) of these regions were located in Victoria and almost 20% were located in Tasmania.

This highlights the relatively sedate housing market conditions in these states compared with their five year average.

The three Councils recording the most significant slowdown in sales over the year to March 2013 compared with their five-year average are all key mining regions:

• Shire of Roebourne which includes the suburbs surrounding Karratha recorded 144 sales over the year to March 2013; 45% lower than the five year average.

• Queensland’s Isaac Regional Council, which is home to the coal mining towns of Moranbah, Clermont, Dysart and Nebo (amongst others), recorded 252 sales over the year to March 2013; 45% lower than the five year average.

• Port Hedland – the heavyweight of the mining towns showed that transactions have slowed from a five-year average of 243 sales down to 137 over the year ending March 2013.

The slowdown in these mining regions shouldn’t come as a great surprise considering weaker commodity prices and a slowing of infrastructure projects associated with the mining sector.

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A hiatus for property sales over the past half decade is beginning to show signs of change with some regions showing substantial improvement in transaction volumes.

Tim Lawless

Tim Lawless

Tim Lawless is national research director of CoreLogic RP Data.

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