The downturn in mining in Western Australia has seen property prices plunge in areas like Karratha and Port Hedland, leading property market watchers to refocus their attention on growth areas like Busselton in the state's south west, the latest quarterly data from the Real Estate Institute of Western Australia shows. In the 12 months to March 2015, Karratha’s median house price has dropped a staggering 33.8 per cent from $650,000 to $450,000 currently.

Port Hedland saw a downturn of 11.4 per cent, with its median down to $753,000. Meanwhile, down south Busselton experienced 5.7 per cent growth in the year to March, once again being the best performing regional area in the state.

With a median house price of $460,000, Busselton was well ahead of all other regional centres, most of which went backwards. Busselton was more affordable than Perth, but there was no one particular reason as to why the region was doing well, said REIWA spokesman for the southwest, Joe White. After Busselton, Albany saw the next largest growth of 4.1 per cent to a median price of $385,000.

The only other regional centres to experience growth were Mandurah/Murray with 1.3 per cent growth to a median of $405,000, Bunbury with 0.3 per cent growth to $380,000 and Kalgoorlie/Boulder with just 0.1 per cent growth to $343,000.

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Mining town Karratha has turned the corner