Two WA towns devastated when BHP Billiton abandoned them at the height of the financial crisis are back in demand.
Real estate in Hopetoun and Ravensthorpe is once again hot property, lifting the black cloud after the closure of BHP Billiton's Ravensthorpe Nickel mine in January last year.
The mine closed its doors leaving a vacuum not just in the town’s economy but also in its real estate prices.
But Shire of Ravensthorpe president Ian Goldfinch said things were looking up for the two towns following the announcement by Canadian-based miner First Quantum Minerals to take over the operation.
Galaxy Resources is also at an advanced stage of developing its Mt Cattalin lithium project, also based in Ravensthorpe.
“Galaxy will start producing product around August/September and we are looking at a reasonable number of contractors coming in.
"All of a sudden the Hopetoun and Ravensthorpe housing is filling up," he said.
Mr Goldfinch said that shopkeepers were being careful and were not going overboard stocking up shelves just yet.
"We have learnt that mining goes up and down and we have had such a jolt and had to take that into consideration."
Elders Real Estate Hopetoun manager Terri Pens said the real estate market was looking much better than it had been for some time.
"There is no such thing as bad publicity because due to it we are now more on people's minds and people are hearing about us and coming to have a look.
"The Galaxy mine will employ about 150 people and a number of those are leasing and some are buying," she said.
"We have broadened the base and are not just relying on one company and mining.
"I have sold property to people from Perth and Victoria. The atmosphere is quite upbeat and positive.
Landmark real estate specialist for Ravensthorpe/Hopetoun Cindy Gordon said Galaxy's staff would not arrive until next month.
"The rentals have been taken up and we are getting to a point where rental prices are lifting. We have also seen a few sales," she said.
However, banks were still reluctant to invest in the area, hampering real estate growth.
"On the downside, people who want to take out loans from banks to buy in Hopetoun are only getting 50 per cent because the banks still see Hopetoun as high risk place, but that is not true anymore," Ms Gordon said.
It had been very busy for the past year, with property sales averaging $250,000 to $350,000, while top-end properties had sold for more than $1 million.
"Galaxy have taken out leases for six months," Ms Gordon said.
"It's looking much more positive than it has for a while - the prices are more reasonable and business is starting to show more activity."
A First Quantum Minerals spokesman said that 160 homes were bought for their employees, which was part of the BHP deal.
"The initial stages of building will have about 200 construction workers living in camps and a total of 600 workers once everything gets going," he said.
A Galaxy Resources spokesman would not confirm how many properties the company had leased in Hopetoun and Ravensthorpe.
"We will lease them then sub-lease them on to our employees," the spokesman said.
"It will peak to 150 staff in April during construction and then it will diminish a bit."
Email a friend