Louis Christopher of SQM Research has spent some time recently highlighting that, since the middle to 2012, a number of mining towns are going through a property downturn.
It's something both he and I discussed on Commonwealth Bank's Living Space blog here:
“A number of mining towns around the country are in the middle of a downswing,” says SQM managing director, Louis Christopher.
It started in the second half of 2012 and as time has gone on conditions in these real estate markets have progressively got worse. There are examples where rents and house prices have fallen by 30 per cent-plus."
There are a number of reasons why this might be the case, though with mining towns you often have to treat them on a case by case basis.
As the labour-intensive construction phase of the mining bboom has now peaked, some mining towns have entered their transition phase.
The other thing to watch out for is towns where employers take matters in to their own hand and begin to provide their own accommodation for FIFO workers.
On other occasions, land is released for new suburbs and developments.
Living Space continues:
"One of the factors behind this is that Australia’s mining boom is moving into a new phase, says Pete Wargent, co-founder of AllenWargent property buyers, and a former Group Financial Controller for an ASX-listed mining company.