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.
Leith van Onselen is Chief Economist at the MB Fund and MB Super. He is also a co-founder of MacroBusiness.
Leith has previously worked at the Australian Treasury, Victorian Treasury and Goldman Sachs.
