Published on October 22nd, 2012
Mining town receives accommodation funding
A Western Australian mining town has received funding to relieve the pressure on the real estate market in the area. The influx of mining workers into Coral Bay has created difficulties in the rental market through limited accommodation.
But the regional development minister Brendon Grylls has announced a $17.375 million housing project which will see 35 homes house up 75 workers to ease the pressure on the local real estate sector.
Grylls said that this investment will have far-reaching effects, including tourism.
"This project has provided more accommodation options for workers and will take the pressure off accommodation designed for tourists to the area. To attract and retain staff, particularly in the peak tourism season, it is vital to provide seasonal workers with affordable, quality accommodation.
"This initiative will benefit Coral Bay's economy and have positive effects on the wider community, and importantly will help to keep accommodation rents in the town affordable," he said.
Another benefit of this campaign, Grylls said, is that there is an opportunity for jobs in construction of this project, including roles for people with an indigenous background.
It comes as reports suggest the current economic conditions mean that with an anticipated interest rate cut in November, there could be a flood of investors and home buyers entering the market.
The Herald Sun reports that current economic conditions such as low interest rates mean that the income from rental yields is similar to mortgage payments. As a result, there could very well be a surge in demand from buyers trying to take advantage of the economic climate.
With recent unemployment figures showing that the number of jobless has risen, analysts say it's likely that the Reserve Bank of Australia will lower the cash rate from 3.25 per cent on Melbourne Cup Day (6.11.12).