Buying Property in Australia During the Mining Boom

Examining the real estate markets in Australia's booming mining communities

With thousands of Brits already living and buying property in Australia, the country is clearly a strong favourite for investors and would be expats.  The current climate in Queensland and Western Australia in particular might make this country even more appealing currently.  This is especially so for investors who want to make money from letting property...this article is about buying property in Australia during the current mining boom.

As the mining boom continues and interest in Australia rises, investors might find the time for buying Australian real estate is now.  Although prices have been traditionally high, the influx of activity in the west of the nation is worth taking note of.  In addition to mining-based activity, major financial companies are setting up shop in the Queensland region and are bringing workers with them providing even more scope for an investor in Australia.

According to Bloomberg, the office vacancy rate has dropped to a 19-year low - all types of offices are renting like wildfire as companies move in to take advantage of the mining boom.  In Perth and Brisbane for example reports have it that no office space is available at all…

So, what does this mean for residential property investors?

As the offices rent out and workers come in to staff them, there will be a need for living accommodation as well.  Buyers here who are looking to purchase and let their real estate assets will find the atmosphere is currently very ripe in Australia’s boom towns.  Add to this the likely influx of tourism to these regions as more people explore and get to know Perth, Brisbane and the natural draws of Western Australia and the equation adds up well for timing an entry now.

Buying property in the west of Australia is becoming a big trend for investors as the boom starts to come into full force – but the prices are starting to climb however.  The overall market saw a 7.7% increase in prices according to the RP Data-Riskmark Hedonic Index, but the Brisbane area is still considered more affordable than other markets like Sydney’s for example.

The average prices for Australian real estate in Brisbane fall in around AUD 424,000, compared with Sydney’s AUD 561,000.  Buyers in the Brisbane area will find it is more than possible to find reasonably priced single-family homes here too. prices in the AUD 200,000-300,000 range can still be had – for the time being anyway.

Although it is hard to gauge just how long the Australian economic and mining boom will continue, buyers in the west of the nation will find there are other sustainable draws for their investments.  The Brisbane area itself is home to a number of tourist attractions.  The city is located on the Brisbane River and Moreton Bay and the landscape also includes mountains and a climate that is considered envious by British standards!  Brisbane experiences hot summers, but very mild winters and this is proving to be a draw for increasing numbers of visitors and expatriates emigrating to Australia.

As Australia continues to draw international attention with its economic and mining boom, investors will find plenty of property based possibilities.  Between straight buys for resale and capital appreciation and the letting opportunities for rental yield, Australia is an interesting real estate market to explore.