Karratha rents up 60pc this year

The cost of renting a residential property in the Pilbara jumped by about 20 per cent in the September 2023 quarter, highlighting the acute housing shortage in the region.

The median weekly rent in Karratha has reached $1,200 after soaring by 23 per cent in the September quarter and 60 per cent in the past year.

Port Hedland residents also faced a big increase in the September quarter, with the median weekly rent up 18.8 per cent to $950.

The annual increase in Port Hedland was 19.1 per cent, implying little growth earlier in the year.

The new data from REIWA shows the volatility in regional property markets.

The median weekly rent in Broome was unchanged in the September quarter but was up 33 per cent over the year to $1,000.

Conversely, there was a sharp 12.5 per cent increase in Geraldton during the September quarter, to $450.

The spike in rental rates in the north-west comes at a time of strong employment growth.

This has been driven by giant resources projects, like the expansion of Woodside’s Pluto gas plant and construction of Perdaman’s Ceres urea plant, and continued investment in iron ore and lithium mines.

REIWA president Joe White said the employment growth fuelled the need for rental properties.

“While building constraints are having an impact on all markets, they are greater in regional areas like the Pilbara,” he said.

“It is difficult to get trades and materials; the cost of construction has risen significantly and is prohibitive for many people.

“As a result, there is pressure on the rental market to meet the needs for housing.”

REIWA noted that Karratha’s median weekly rent is well below the peak of $1,750 in 2011, in the midst of the last resources construction boom.

There has been substantial growth in the region’s housing stock since then, helped in large part by Royalties for Regions funding.

The City of Karratha and Town of Port Hedland are both seeking more state government support to expedite further housing developments.

Coincidentally, the state government today announced new initiatives under its $200 million North-West Aboriginal Housing Fund.

These include $30.6 million for 28 affordable rental homes through the Pilbara Aboriginal Home Ownership Program, along with “wraparound engagement services” for Aboriginal workers and their families.

The government will also provide $15.9 million in funding for Kimberley and Pilbara based Aboriginal Community Controlled Organisations (ACCOs) to provide housing for their Aboriginal employees.

Housing Minister John Carey also said construction was progressing on a $10.5 million accommodation and training facility in Roebourne for apprentices and low-income trade employees.

The government is funding Yindjibarndi Aboriginal Corporation to construct the grouped dwellings.

Editor’s note: The next edition of the fortnightly Business News magazine will come with a special north-west supplement, which includes in-depth analysis of the region’s residential property markets.