The Arrium collapse is not pretty for Whyalla property investors: Pete Wargent

The Arrium collapse is not pretty for Whyalla property investors: Pete Wargent
The Arrium collapse is not pretty for Whyalla property investors: Pete Wargent

 

With the future of Whyalla's steelworks remaining up in the air, the property market appears to be at risk of imploding.

With vacancy rates above 20 percent and rising, median asking rents appear to be dropping at a quite alarming pace. 

Asking rents down by about 30 to 50 percent over the last three years, with the pace of the decline having accelerated over the past year, and more so over the last quarter.

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The Arrium collapse is not pretty for Whyalla property investors: Pete Wargent

Source: SQM Research

This can be a pervasive risk for towns that are so heavily reliant upon one or two industries or firms for employment and for the local economy to thrive. 
 
The administrator's call for government assistance to support the Arrium steelworks was rejected by Prime Minister Turnbull.
 
The Labor state government has pledged support in the form of a $50 million funding facility for the prospective new owner of Arrium - were such a deal to be found. 
 

PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and blogger.

His latest book is Four Green Houses and a Red Hotel.

Pete Wargent

Pete Wargent

Pete Wargent is the co-founder of BuyersBuyers.com.au, offering affordable homebuying assistance to all Australians, and a best-selling author and blogger.

Tags: 
rental properties Steelworks

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