Latest buyback figures reveal 2019 valuation rates preferable

Transport Minister Rita Saffioti says the terms of the West End buyback scheme are ‘fair and reasonable’ as the latest figures reveal 2019 valuation rates are more favourable then any growth reflected over the past two years. In June, the Minister was requested to compare properties already purchased under the scheme with the alternative policy at current market valuation. Her insights reveal the growth rate applied to an August 6 2019 valuation is more favourable than the growth reflected by the increase in median house prices since that time. Ms Saffioti said terms of offer were ‘fair’ with property values strongly correlated to rental demands and investment in the area. “Port Hedland’s cyclical property market is directly related to the success of the Mining Industry and commodity prices,” she said. “While the mining industry has been performing exceptionally well in recent years, the property market in regional mining towns have also been improving. “However, historical sales evidence reveals large variation in property values commensurate with such cycles. “The last 12 months has seen increasing rental returns, with yields driving investment demand from often distant buyers. Lending banks are aware of the property cycles in such townships, therefore they are more conservative to lending on a speculative basis. “They often factor in premiums into their interest rates in addition to requiring additional security for financing purchases in regional towns such as Port Hedland.” The report also showed the fly-in fly-out industry influenced the level of owner occupation demand. A total of 46 properties have been settled since the start of the scheme with the initiative accepting 97 offer letters.