CoreLogic: Mining property bust has finally ended

CoreLogic’s head of research, Tim Lawless, has released analysis suggesting the epic mining property bust has finally ended:

Since conditions peaked in line with commodity prices and a wind down in infrastructure spending, dwelling values in these regions have moved through a long and deep downturn. Some suburbs have seen the median value of a house fall by more than 80% (WA’s Newman is down 84.2% since peaking and Qld’s Dysart is down 83.0% since peaking).

Although the recent trends can show some volatility due to low transaction numbers, many of the these mining regions have started to see housing conditions bottom out and commence what is likely to be a drawn out period of recovery. Most regions are showing housing values that are well below levels recorded ten years ago, which may be attractive to home buyers and investors. Rental vacancies have tightened substantially which is driving up rents, in fact some of the Bowen Basin towns have seen asking rents rise by more than 20% over the past twelve months.

Full report here.

Comments

  1. Random copy pasta ex SMH. [Against the wall with this git…Do your job you oxygen thief]

    “”. James Shipton, chairman of the Australian Securities and Investments Commission (ASIC), says there is one word that recurs in the Hayne royal commission’s interim report into misconduct in the financial services industry and that is “dishonesty”.

    “That word ‘dishonest’ … that is the diagnosis on our industry – it is a blight,” he told a finance industry conference in Sydney on Thursday. “We all need to have a single aim and that is … a fair, strong and efficient financial services sector for all Australians.

    “If we embrace the concept [that the industry manages] other people’s money, then hopefully we can get away from this horrible diagnosis of dishonesty to a diagnosis of professionalism.”

    He did not address the criticisms made in the interim report released last month by Commissioner Kenneth Hayne, in which much of the blame was directed at ASIC and the Australian Prudential Regulation Authority (APRA) for being too close to the banks and not taking them to court.””

  2. Jumping jack flash

    “Most regions are showing housing values that are well below levels recorded ten years ago, which may be attractive to home buyers and investors. ”

    Why?

    Booming industry? Employment opportunities aplenty?
    Debt-induced capital gains?

      • ^ this

        also those rental yields are BS, once you pay insurance for flood and cyclone cover and hefty council rate reflective of the relatively higher cost of running an isolated town, there isn’t enough yield to cover the depreciation , which is a problem because land values are near zero it’s all in the building values.

  3. Where prices lie in the housing cycle mean little in isolation.

    Regardless of location – housing values only rise when demand exceeds supply – any forecast about a market’s future needs to hold data about the new housing market – housing starts versus need to build and for the existing market – sales volumes versus number of properties for sale.

    In Queensland’s mining towns, for example, I know from our work , that in both cases (new market and resales) the ledger is stacked on the oversupplied side of things. So little change here for mine folks.

    PS I wish the RpData/core-logic would focus more on their data supply (and I can say as a 25+ year user, it has gone down the gurggler) and less on their media releases!

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