Published on August 30th, 2012
Mining behind success of WA property market
Despite claims that activity in the mining and resources sector is winding down, it seems that the news has done very little to dampen property investment in key towns.
New research from the First National Real Estate 2012 Property Market Outlook Mid-Year Update shows the state's mining towns are continuing to underpin growth in the local real estate sector.
According to the survey of 400-plus local property agents, the WA market will improve in the months leading to Christmas as vacancy rates trend downwards and home prices start to pick up.
Buyers who may have otherwise delayed taking out a mortgage might also have been encouraged to enter the property market after a string of interest rate cuts earlier this year.
And with further cuts predicted for later in the year, it is understandable that greater feelings of optimism are starting to creep into the local property market.
Other factors such as population increases and more work opportunities are also helping to boost consumer confidence and encourage new buyers to take out home loans.
The results from this study are welcome relief for many in the sector who have been concerned about the long-term impact of a steadying market on rental yields and returns.
While Perth is still a worry to some investors, it seems that mining towns are continuing to offer strong returns and attracting strong interest from buyers both locally and abroad.
For those who are considering buying in WA, the chance to increase your wealth with a property in one of the state's many mining towns is still a real possibility. However, it may be slightly more difficult to make the same returns that have come to characterise these areas in recent years.