No Go Zone Kalgoorlie drops 5%
The Western Australia mining town of Kalgoorlie has confirmed its rating as one of our No Go Zones. House prices dropped 5% in the June Quarter, according to figures from the Real Estate Institute of Western Australia.
Local agents report buyers are cautious because of high interest rates and petrol prices, but we have rated Kalgoorlie a No Go Zone for property investors because its market has peaked, its rental returns are no longer attractive and the town has serious environmental and social problems.
Even with the fall in values, Kalgoorlie still has a median house price around $330,000, which means its previous appeal as a boom town with affordable prices and high yields has dissipated somewhat.