Property prices tank in mining towns

House prices in towns built around mining, manufacturing and car-making are likely to remain flat for a decade, an expert has warned.

Speaking to the Australian, Residex chief John Edwards warned prices in Perth are also likely to nosedive after six years of rising prices, although this may come as welcome news for first-home buyers looking to get on the ladder in the city.

Meanwhile, real estate agents from the mining town of Kalgoorlie also in western Australia, are already seeing prices tumble.

Ron Hunter, from the Elders Kalgoorlie estate agents, said that prices had sunk by as much as a quarter.

“There are instances where properties are being placed on the market at prices lower than they would have been this time last year,” added John Matthew and Sons agent Allan Pendal.

On a more positive note, the Australian Associated Press has reported that the bevy of new low-interest home loans on the market could help lift OZ’s weak economy out of the dirt in the next few months and allow the country to sidestep a full-blown recessionADNFCR-1761-ID-18940096-ADNFCR