Where's this happening??
Freckle wrote:Where's this happening??In glorious Mount Isa!
Available rentals continue to increase.
RE.com now lists 74 up from 52
For sale listing remain the same at around 259 with 18 new listing suggesting there is some turn over at least. There's a swag of new one bedders listed. Mainly new multi story apartments. I would hate to have bought one of those off the plan.
Wow that's gotta hurt. I know I don't have the kind of personality to withstand the stress of investing in a high risk sector like that. I'd have had a heartattack from stress by now!
Jacqui Middleton | Middleton Buyers Advocates
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There are 63 for rent in Hedland and surrounding areas and 202 for sale, I agree the market has softened but I think it's important to quote numbers which omit properties under contract/offer/application. I've lived and breathed the Pilbara for many years now and kicking myself I missed purchasing in the original pre boom prices, ironically now that I have relocated elsewhere and the prices have come down I've been able to afford an IP in Hedland. There's definitely a lot of trepidation in the market at the moment which makes it a buyers market IMO. Currently negotiating on a less than 12 month old 4×2 in a new subdivision returning $2700/wk in the next rent review which in my book isn't bad – even if rent prices dip the return will still solid and better than what I could find elsewhere in what I see as an area with a long term future. We'll see where negotiations land but looking like 1.1m with some conditions. I would definitely agree with some of the comments on a few other Pilbara threads on this forum – investors have to be careful to stay away from any OTP properties or Transportable homes posing as new builds, the latter unfortunately look new and shiny initially but deteriorate very quickly and local buyers tend to stay away/pay less for these, unfortunately investors continue to be sucked in. Also, if considering buying, question your REA about all the details of the property (including whether it was build on site or is a transportable), I won't mention names, but there is a particular agency in the area that is known to locals as misrepresenting properties for example advertising them as having a company lease when in fact it's rented by private individuals or listing with additional features (eg 6 park spaces etc) when this is not the case.
Sorry to come off so preachy in my first post I've been reader for some time but have only just taken the leap to post given this is a topic/area of investing I believe I have some first hand insight into (more so than reacting to news reports ore prices etc). Admittedly I'm probably somewhat defensive of the Pilbara having been a 'local' for so long and seen the area go through many ups and downs and grow enormously. Personally I think the current conditions make it a good time to buy into the market but that's just my humble opinion – time will tell if I'm right (or wrong) I guess!
As a logistics coordinator for a few small transport operators I'm seeing things hit the wall rather quickly. Definitely faster than I thought. In the last 8 weeks the brakes went on big time. I dove tail in with many of the big transport operators and their stories are starting to get scary. We're all wondering if the current state of play is just a lull or a sign of things to come.
One operator just dropped 5 subbies and parked up 4 of his own trucks. A few weeks ago they couldn't keep up. Two large construction companies we deal with are winding up in the Pilbara due to contracts finishing and one who has had 3 camp projects canned in the last 2 months.
Jan De Nul are pulling out of Hedland along with many other large operators. The work is starting to dry up and gas projects won't be enough to fill the gap I suspect.
I suspect the writing's on the wall and we'll simply see a continued slow down as projects complete or are canned.
Rentals have jumped to 84… ouch!
For Sale are slightly down at 247. That's still historically high but its still holding. It'll be interesting to see how the increasing rental availability will pressure the For Sale properties.
I'm getting anecdotal evidence that businesses are starting to struggle. Caterpillar (Westrac) apparently is putting reps on the road to chase maintenance work. That dovetails with direct info that machinery and equipment is being parked up as contracts complete or are canned.
We just had a big hut move from Geraldton to Onslow canned after we got started. Trucks where turned around at Carnarvon and sent back. What a balls up that's turning into. The excuse was the receiver had condemned the huts and wouldn't accept them.
We're chasing work with another mob to demob and shift a major contractor leaving Port Hedland. Things are slowing faster than I anticipated. It'll be interesting to see if any panic sets in over the next few months.
The vacancy trend seems coming down now and only 62 properties now available for rent. Do you think this trend will continue? So far seems to me that China demand is picking up again and the expansion still there only slightly less agressive.
SethBill wrote:The vacancy trend seems coming down now and only 62 properties now available for rent. Do you think this trend will continue? So far seems to me that China demand is picking up again and the expansion still there only slightly less agressive.???? I get 105. Did you include surrounding suburbs?
For sale – now 278… up from 247
For rent – now 105… up from 84
A definite trend.
I'm currently working a short term contract in Hedland and after an absence of several months (Jun – Nov12) the place seems much less frenetic. The pace has definitely slowed.
Yeah that figure 62 rental properties is with no surrounding suburb and 105 with surrounding suburb.
For sale holding at 241 but if you look at sales it's obvious the market is dead. I don't know any agent can survive here/there when TO is a paltry 1-3 properties per month.
For Rent just jumped again to 114. At this rate rentals are crashing yet asking prices are still insane. Reality hasn't sunken in yet.
For rent now 123.
For sale properties have mysteriously dropped 278 to 223 – some 55 properties. There have only been a few sales in Nov and half of them look like deposits for off-the-plan properties listed as sales.
Is this just sloppy listings/data lag etc from realestate.com.au or are we seeing properties pulled from the market?
Rent now 130.
It's an obvious trend
For sale has locked in at 223 it appears. To be expected over the Xmas period??
Freckle wrote:As a logistics coordinator for a few small transport operators I'm seeing things hit the wall rather quickly. Definitely faster than I thought. In the last 8 weeks the brakes went on big time. I dove tail in with many of the big transport operators and their stories are starting to get scary. We're all wondering if the current state of play is just a lull or a sign of things to come.One operator just dropped 5 subbies and parked up 4 of his own trucks. A few weeks ago they couldn't keep up. Two large construction companies we deal with are winding up in the Pilbara due to contracts finishing and one who has had 3 camp projects canned in the last 2 months.
Jan De Nul are pulling out of Hedland along with many other large operators. The work is starting to dry up and gas projects won't be enough to fill the gap I suspect.
I suspect the writing's on the wall and we'll simply see a continued slow down as projects complete or are canned.
Hi Freckle
Are you seeing any indications of an improvement in business conditions as a result of recent increases in iron ore prices? What about the Roy Hill project? Any indications of that reversing the downward trend, perhaps as the year progresses, assuming a stabilization of iron ore prices at or near current levels?
moxi10 wrote:Hi Freckle
Are you seeing any indications of an improvement in business conditions as a result of recent increases in iron ore prices? What about the Roy Hill project? Any indications of that reversing the downward trend, perhaps as the year progresses, assuming a stabilization of iron ore prices at or near current levels?
At this stage steadily down as the big projects wind down. Might but it's a big might see a few delayed projects get going again. Roy Hill's still a 50/50 proposition as far as I can see. I tend to think there'll be a lot more caution this year even though ore's bounced back. I don't think too many see it holding for too long but nobody really knows if it'll settle above $120.
I fluked a good contract (4 weeks) on the end of last year and I've sold all my gear now so I'm cruzing with a pocket full of cash.
Rent at 138 with 21 listed as new listings.
Supply is definitely outstripping demand and the number of properties listed in Port Hedland (as opposed to Sth Hedland) is massive. Port is more expensive so I suspect a migration from Port to South to find cheaper rentals may be occurring. Rental churn?
For sale is sitting on 213. Where did all those listings go from back in mid Nov 12 ??? There doesn't appear to be any sales since Nov 12.
Rentals just took a massive jump to 157 (up from 138)
For sale have dropped to 209 (down from a high of 278) Must be a heap of properties taken off the market. There sure as hell haven't been many (if any) sales. RPData list the last sale in Nov12
Rental vacancies have been rising at the rate of 17/mth… ouch!
Is rent decreasing? Surely with higher rental vacancies means reduced rent.
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