Karratha Short-Term Rental (Airbnb) Market
Karratha WA Investment Analysis
HOLD
— vacancy at 0.8% and $1,600/wk rent puts this in the top tier of WA yield suburbs.
THE MARKET
Median house price in Karratha sits at $276,112 with 54 days on market and a 0.8% vacancy rate. This is a tight rental market right now.
- **Median house:** $276,112 | **Units:** $172,634 - **Gross yield:** 30.1% | **Net yield:** 28.6% - **5yr price CAGR:** -1.4%/yr | **3yr forecast:** -1.6%/yr - **Population:** 2,755 | **Owner-occupier rate:** 28% | **Affluence:** High
- **Supply pipeline:** Moderate — Development activity consistent with long-term averages
RENTAL SNAPSHOT
- **Vacancy:** 0.8% (worsening) | **Rental demand:** Very High - **Median weekly rent:** $1,600/wk | **Days on market:** 54 (worsening) - Landlord market — rents likely to keep rising.
SHORT-TERM RENTAL
- **Median nightly rate:** $165/night | **Occupancy:** 66% - **Estimated annual STR gross:** ~$39,748/yr - **vs long-term rent:** $83,200/yr (comparable — LTR offers simpler management)
INFRASTRUCTURE & CATALYSTS
- No major confirmed infrastructure projects on record. - **Transport:** Well-connected inner-city location
BULL CASE
If Karratha maintains 3%+ annual growth and vacancy stays below 0.8%, median prices could reach $317,529 within 3 years with yields compressing slightly as capital values rise.
BEAR CASE
A market correction or interest rate shock could see prices in Karratha pull back 10-15% from $276,112, with vacancy rising to 1.4% and rental yields softening as tenants gain leverage.
KEY RISKS
- Negative price growth suggests a softening market
COMPARABLE MARKETS
- **Carnarvon** (WA): $284,169 median, 8.5% yield, 2.0% 1yr growth
THE PLAY
Karratha offers balanced fundamentals but does not present an urgent buying signal. The market is in a correction phase with low vacancy risk. Monitor vacancy trends and price movements over the next 6-12 months. Only enter if a property can be acquired at or below median pricing with yields exceeding 30.6%.
- Entry range: $248,501 – $303,723 - Minimum gross yield to target: 30.4% - Watch signal: vacancy staying below 2% and days on market falling below 35
This analysis is for informational purposes only and does not constitute financial, legal, or investment advice. Seek professional advice before making investment decisions.
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Analyse a Property →Data sourced from ABS, state government property sales, and Airbnb market analytics. For informational purposes only — not financial advice.