Powered by MOMENTUM MEDIA
realestatebusiness logo

Breaking news and updates daily. Subscribe to our Newsletter!

Home of the REB Top 100 Agents
Breaking news and updates daily. Subscribe to our newsletter

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

rpm logo latest

Mining boom over, construction boom just begun

By Kylie Purcell
02 May 2014 | 1 minute read

Australia's mining boom has ended and been replaced by a housing construction boom, according to a report released by the Commonwealth Bank.

That said, mineral-rich Western Australia continues to be Australia’s best-performing economy and the strongest in housing finance. It is also second in economic growth and third on housing starts, according to the report.

Murray Brede from Perth firm Loans Café said it was not so much the mining boom that had ended but the construction phase of the mining boom.

“And that’s where a lot of people have left. So the vacancy rates in Perth are a bit higher now,” he told Residential Property Manager's sister title, The Adviser.

Mr Brede said rental prices had also fallen in the metropolitan areas of Perth. “So in some cases the mortgage holder might have lost about 20-30 per cent of their rent,” he said.

Future success in new housing in Western Australia would depend on how negative gearing was treated in the May 8 state Budget.

“It’s a really critical thing,” he said. “If they say you can only negatively gear on new property, that’s going to really help new housing, and perhaps stifle existing housing.

“So investors, I think, are holding off a bit now ... there might be a real change in the landscape next week.”

The report by the Commonwealth Bank placed NSW first in new housing construction, with Sydney coming out as the highest performing citiy, followed by Melbourne, Vic.

Mining boom over, construction boom just begun
default
lawyersweekly logo
Listen to other installment of the Real Estate Business Podcast
Rankings
rankings
JUST RELEASED
May 09, 2022

REB Top 50 Women in Real Estate 2022

REB is thrilled to present the Top 50 Women in Real Estate 2022 ranking, which sets t ... LEARN MORE

rankings
JUST RELEASED
May 04, 2022

REB Top 100 Agents 2022

Now in its second decade, the REB Top 100 Agents 2022 rankings are the most revered s ... LEARN MORE

rankings
JUST RELEASED
May 02, 2022

REB Top 50 Agents NSW 2022

Even a pandemic has not put the brakes on the unstoppable property market in NSW, whi ... LEARN MORE

rankings
JUST RELEASED
April 27, 2022

REB Top 50 Agents VIC 2022

The COVID-19 crisis has not deterred the property market in Victoria, which has been ... LEARN MORE

rankings
JUST RELEASED
April 25, 2022

REB Top 50 Agents QLD 2022

As the property market continues to roar in Brisbane and Queensland, the REB Top 50 A ... LEARN MORE

Coming up

rankings rankings

 

Subscribe to our RPM
mailing list

 

Do you have an industry update?

top suburbs

12 month growth
Mirador
103.33%
Bawley Point
98.13%
Walla Walla
90.7%
Byron Bay
86.67%
Kiama Heights
85.93%
Greta
84.14%
Nulkaba
81%
South Hobart
78.78%
Diddillibah
76.25%
Lennox Head
73.98%
SEE AREA REPORTS ON SMART PROPERTY INVESTMENT WEBSITE
Subscribe to Newsletter

Ensure you never miss an issue of the Real Estate Business Bulletin.
Enter your email to receive the latest real estate advice and tools to help you sell.