Despite recent negative media coverage of the Pilbara area, one leading Western Australian principal insists rental yields in the area are the highest in the country.
Recent data by SQM Research reported rental vacancies in Hedland and Karratha had risen over the past 12 months, while the Pilbara Development Commission released its latest quarterly housing market update - based on data from Real Estate Institute of Western Australia (REINSW) - observing decreases in the average advertised prices for rentals and properties for sale in Hedland, Karratha and Newman.
However, Ryan Crawford, director of Crawford Property Group in Western Australia, said rental yields in the area appear to be some of the best in the country.
“While recent reports should not be ignored, it is equally important to consider that these towns remain some of the best locations to build property wealth - with the highest yields in the country, investors continue to average 10 per cent to 13 per cent rental yields from Pilbara property,” he said.
According to Mr Crawford, investors in the Pilbara region can experience several property cycles in a single year.
“Long-term investors in these markets will have experienced several cycles over the years and will know that regular market movements and seasonal fluctuations are commonplace; understanding these markets’ unique characteristics and how market data correlates is the key to maximising returns and minimising risk,” he said.
“Property markets in these mining town markets differ significantly from capital cities. They can turn a full cycle in 12 to 18 months and downturns, lasting from three to 12 months, have occurred regularly over the past decade. In contrast, capital cities generally experience a full market cycle every five to eight years."