The proposed gas hub slated at James Price Point, north of Broome, will impact the local housing raising prices and increase rents says the president of the Real Estate Institute of Australia.

Local authorities have assessed the project in a reports saying that that while accommodation is already tight in the area, it would have limited effect on prices and demand.

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The president of the Real Estate Institute of Australia, David Airey, says the Western Australian Government is downplaying the impact the gas hub would have on the local housing market. "With this sort of pressure on housing there is no question that prices and rentals will go up," he said. "The people who own properties in the north-west tend to be more affluent and can hold out for higher prices. So I think the report on housing needs some correcting there. Minimal effect? I can't see that. It'll be a maximum effect."

"These things do need to be examined very carefully. The impact on housing, how they're going to supply the houses, and where they're going to get the labor to build these houses and properties that are required," he added. "These issues need to be addressed and I would suggest pretty soon, rather than waiting to see all the things that could go wrong."

It was in 2009 that Western Australian authorities signed an in-principle agreement to build a liquefied natural gas precinct near Broome. The project has attracted a wave of opposition from residents afraid the gas hub will change the character of the area and turn it into a mining town.

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