Karratha Property Market Update 1st Half 2025
Karratha is a vibrant town located in the heart of the Pilbara region of Western Australia. It is known for stunning red desert plains, rugged coastlines, and mining and energy industries. Karratha offers a unique blend of natural beauty and modern infrastructure.
Property Trends
In Q4 2024, Karratha recorded a median house price of $635,000 and a median unit price of $390,000. This represents annual (Q4 2023 - Q4 2024) growth of 13.6% for houses and a -3.7% price softening for units. Comparing Q4 2023 and Q4 2024, sales surged by 47.2% (to 131 sales) for houses and 45.0% (to 29 sales) for units. This confirms a highly demanded housing market, which created a buffer against high interest rates (hence price growth). This suggests now is an ideal time for owners to capitalise on their investments in the housing market. The unit market has become slightly more affordable, which creates a unique and immediate opportunity.
Project Development
Karratha will see approximately $174.4M of new projects commencing construction in 2025. The Former Balmoral Caravan Park Hotel & Beer Garden Redevelopment – The Bayview ($120.0M) is one of the largest projects due to commence. The Judura Cresent Apartments & Grouped Dwellings (20 Apartments & 17 Dwellings) is the only residential project planned. With very little new ready-to-sell stock commencing construction in 2025, a further undersupply for houses is highly possible, which will push prices higher.
Rental Market & Growth
House rental yields in Karratha was 10.4% as of December 2024, above that of the City of Karratha (7.3%) and the Perth Metro (3.9%). Furthermore, median house rental price increased by 9.1% in the past 12 months to Q4 2024, at $1,200 per week. In the same timeframe the number of houses rented decreased, by -43.8% (to 72 houses) in Q4 2024, which suggests an undersupply. There is a highly demanded and competitive house rental market in Karratha, which is beneficial to investors.
Vacancy Rates & Property Investment
Karratha recorded a vacancy rate of 1.0% in December 2024, slightly above the City of Karratha average of 0.6% and Perth Metro’s 0.7%. Vacancy rates have fluctuated in the past 12 months, but overall showed a declining pattern, which indicates an even tighter rental market. Furthermore, a 1.0% vacancy rate is well below the Real Estate Institution of Australia’s healthy benchmark of 3.0%, indicating quicker occupancy of rental homes in Karratha. This creates a conducive environment for investors, especially with a more affordable unit market in Q4 2024.
