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Strength in Mining Drives Property Prices

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The latest mining boom is pushing up house prices in Orange, Karratha, Townsville and Port Hedland as workers, first-home buyers and their families make the move.

Regions with economic growth closely tied to strongly-performing minerals, aside from coal, are having a flow-on to house price growth, according to the REA Insights Regional Australia Report 2020.

The strength in mining is being driven by Chinese government stimulus as well as Covid's impact on other mineral-producing countries such as Brazil, which has been significantly impacted by the pandemic.

The strongest house price growth in the past three months is the Western Australian wheatbelt, which has had an 11.7 per cent increase likely driven by the Caravel copper project, gold and iron ore.

REA chief economist and report author Nerida Conisbee said enquires are also flooding in for Townsville and Orange boosted by the performance of nearby mines.

“Mining towns such as Orange and Karratha are seeing strong demand off the back of a resurgence of the mining sector, while areas such as the New South Wales Mid-North Coast appear to be benefitting from people looking to make a lifestyle change,” Conisbee said.

The report shows regional areas are gaining attention from people attracted to mining towns for work or beach locations such as Byron Bay in work-from-home settings.

An Australian Construction Industry Forum report shows mining activities which have been able to continue through the crisis have kept job losses at a minimum during the pandemic.

Work done in heavy industry including mining has been on a six-year downtrend, having reached a peak of more than $70 billion at the height of the mining and resources development boom in 2013-14.

However, it has now stabilised and government infrastructure funding is boosting the sector as it waits for the next mega-project to start, according to the ACIF report.


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Article originally posted at: https://theurbandeveloper.com/articles/mining-boom-boosts-property-prices