Karratha's bid to stimulate the housing market hits a snag and leaves residents divided

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A local government housing program to combat skyrocketing rents in Karratha divides the city.

Letters of support were also received from Karratha Central Healthcare and disability organisation Empowering People in Communities .

"Typically we employ a lot of people working in community services as support workers who do not earn a high income."I don't think it's going to ruin the market in terms of rental [investments]; bringing it back to normalised levels is a great thing."All the necessary infrastructure of water, power and land development for more housing was delivered as part of the previous government's Royalties For Regions program.

It will be releasing a prime lot in the centre of town for mixed development, up to 35 dwelling lots in Baynton and Madigan Estates, and inviting proposals for more development at Tambrey Neighbourhood Centre. A new display village will be built at Madigan to show potential buyers the range of options for owner-occupiers.Real Estate Institute of WA president Damian Collins believed the $35 million would not affect house or rent prices.

"The best thing the government can do is make sure there's plenty of land available and get approvals through quickly." In a statement, the Department of Communities said it was conscious of the renewed growth cycle in Karratha stemming from increased activity in the resources industry.

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