{"id":2933,"date":"2022-06-29T05:05:06","date_gmt":"2022-06-29T05:05:06","guid":{"rendered":"https:\/\/royabhishek.in\/urbanbuyer\/mining-for-real-estate-gold-in-the-resources-regions\/"},"modified":"2022-06-29T05:05:06","modified_gmt":"2022-06-29T05:05:06","slug":"mining-for-real-estate-gold-in-the-resources-regions","status":"publish","type":"post","link":"https:\/\/royabhishek.in\/urbanbuyer\/mining-for-real-estate-gold-in-the-resources-regions\/","title":{"rendered":"Mining for real estate gold in the resources regions"},"content":{"rendered":"<p> [ad_1]<br \/>\n<\/p>\n<div itemprop=\"articleBody\">\n<p>Resource-based property markets around Australia, including the Pilbara region in Western Australia, <a rel=\"noopener noreferrer\" href=\"https:\/\/www.apimagazine.com.au\/research\/suburb-profile?id=417&amp;text=Gladstone%20Central%20QLD%204680\" target=\"_blank\">Gladstone<\/a> in northern Queensland and <a href=\"https:\/\/www.apimagazine.com.au\/research\/suburb-profile?id=12176&amp;text=Broken%20Hill%20NSW%202880\">Broken Hill<\/a> in New South Wales, have seen substantial growth in property values and rents over the past two years.<\/p>\n<p>While the increase in property values is welcome news for homeowners and investors, low vacancy rates in these locations are impacting employment and stretching the finances of locals.<\/p>\n<p>Investors are now eyeing off mining towns around Australia.<\/p>\n<div style=\"width: 33.333%; height: auto; float: left; margin-right: 20px;\"><img fetchpriority=\"high\" decoding=\"async\" style=\"width: 100%; max-width: 266px; height: auto; max-height: 355px;\" src=\"https:\/\/www.apimagazine.com.au\/media\/misc\/Zeta-Bennett-fnbh.jpg\" alt=\"Zeta Bennett, First National Broken Hill\" width=\"266\" height=\"355\"\/><\/p>\n<p class=\"caption mtn\">Zeta Bennett, Director, First National Real Estate Broken Hill<\/p>\n<\/div>\n<p>Among them is Broken Hill, a frontier mining town in the far west of New South Wales\u2019 outback, which is seeing an outstanding 8.1 per cent gross rental yield for houses and 4.4 per cent for apartments.<\/p>\n<p>House weekly rents are sitting at $333, up a massive 22.9 per cent compared to twelve months ago. Houses are king in this part of the bush, with apartments setting <span>renters back $201 per week, which is up a mere 1.5 per cent in the same time.<\/span><\/p>\n<p><span>Zeta Bennett, Director of First National Real Estate, rental prices have taken off in the past year.<\/span><\/p>\n<p><span>\u201cBroken Hill has always been identified as having strong rental returns.\u201d<\/span><\/p>\n<p><span>\u201cDue to low vacancy rates, rents are going up on both re-lets and renewal of leases.<\/span><\/p>\n<p><span>\u201cTenants tended to stay during covid, so we had fewer people vacating while still having the normal amount looking to relocate to the regional city for work or a tree change.<\/span><\/p>\n<p><span>\u201cLow vacancy rates are putting pressure on rental values,\u201d Ms Bennett said.<\/span><\/p>\n<p><strong><span>Covid cure or curse<\/span><\/strong><\/p>\n<p><span>According to new CoreLogic data, dwelling values within the Australian resource-based markets increased an average of 3.0 per cent during the first quarter of 2022, which contributed to a boost in profit-making resales. The number of properties listed for sale or rent has also decreased. <\/span><\/p>\n<p><span>COVID has positively impacted Broken Hill\u2019s property market, Ms Bennett told <em>Australian Property Investor Magazine. <\/em><\/span><\/p>\n<p><span>\u201cOur sale market is very active and has been for several years, but especially in the past twelve months with prices increasing around 15-20 per cent.\u201d<\/span><\/p>\n<p><span>\u201cIncreases have been due to strong rental returns, positive conditions in the mining sector, low-interest rates, increased investment, an affordable housing market, and covid-related tree change activity.\u201d<\/span><\/p>\n<p><span>\u201cThe past 12 months have been positive overall, with no tenants experiencing hardship or vacancies increasing due to hardship.\u201d <\/span><\/p>\n<p><span>\u201cRenovator properties are in high demand across all price ranges.\u201d<\/span><\/p>\n<p><span>\u201cOverall, the pandemic has been very good for local real estate, although we acknowledge this has not been the same for all industries.\u201d <\/span><\/p>\n<p><strong><span>Commodities in demand<\/span><\/strong><\/p>\n<p><span>CoreLogic\u2019s <em>Pain and Gain Report<\/em> revealed that mining-specific employment also surged\u00a0<\/span><span>across parts of Queensland and Western Australia. This has had a positive impact on towns such as Port Hedland in northwest WA and Gladstone in northern Queensland. <\/span><\/p>\n<p><span><a rel=\"noopener noreferrer\" href=\"https:\/\/www.apimagazine.com.au\/research\/suburb-profile?id=2061&amp;text=Port%20Hedland%20WA%206721\" target=\"_blank\">Port Hedland<\/a>, more than 1,600 kilometres north of Perth within the Pilbara region, is known for its intensive mining industry and has the highest tonnage port in the country. <\/span><\/p>\n<p><span>Over the last 12 months, the town has seen a 16.8 per cent property value growth rate, with the median selling price currently sitting at <\/span>$627,868, while apartments are a more affordable option at $339,838.<\/p>\n<p><span>REIWA Deputy President, Joe White, described how international demand for commodities has impacted the town. <\/span><\/p>\n<p><span>\u201cThe Pilbara\u2019s thriving commodity market has had a positive impact on house prices in Port Hedland, particularly as the pandemic has shifted the mindset of mining companies towards favouring a more localised workforce<\/span><span>\u00a0<\/span><\/p>\n<p><span>&#8220;Another key contributor was the success of the Voluntary Buy-Back Scheme in Port Hedland\u2019s West End, which the WA Government agreed to back in June 2020,\u201d Mr White said. <\/span><\/p>\n<p><span>The scheme gives eligible residential property owners the opportunity to sell their property for a government-guaranteed premium market price.<\/span><\/p>\n<p><span>\u201cWith more than 100 properties sold through the scheme in 2021 alone, this has had, and will continue to have, an impact on median house price growth in the Port Hedland regional centre,\u201d Mr White told <em>API Magazine<\/em>.<\/span><\/p>\n<p><span>\u201cREIWA anticipates that WA\u2019s strong economy and the forecast of 1.2 per cent population growth, coupled with the state\u2019s housing shortage, will maintain demand for properties in the regions and continue to drive price growth.\u201d<\/span><\/p>\n<p><span>Mr White added that the <a href=\"https:\/\/www.apimagazine.com.au\/news\/article\/housing-key-target-of-nsw-budget-but-overlooked-in-queensland\">stamp duty reform introduced in NSW<\/a> would encourage people to take advantage of mining, nursing and teaching opportunities in regional centres\u00a0without being effectively fined\u00a0by stamp duty every time they moved.<\/span><\/p>\n<p><span>\u201cThe whole idea is based on the idea of a mobile labour force,\u201d he said.<\/span><\/p>\n<p><span>\u201cInvariably they&#8217;ll move up while a mine is in the construction phase, but they&#8217;ll only be there for two years.<\/span><\/p>\n<p><span>\u201cFor the <a rel=\"noopener noreferrer\" href=\"https:\/\/www.apimagazine.com.au\/news\/article\/busselton-was-best-performing-regional-centre\" target=\"_blank\">bigger regional centres like Busselton<\/a>, <a rel=\"noopener noreferrer\" href=\"https:\/\/www.apimagazine.com.au\/research\/suburb-profile?id=4935&amp;text=Geraldton%20WA%206530\" target=\"_blank\">Geraldton<\/a> and Port Hedland it will encourage people to live in the centre in which they work rather than just fly-in fly-out of Perth.\u201d<\/span><\/p>\n<p><span>On the other side of the country in north Queensland, the coastal city Gladstone, home to the world\u2019s fourth-largest coal-exporting terminal and a large multi-commodity port, is seeing excellent price growth within the apartment market and amidst a <a rel=\"noopener noreferrer\" href=\"https:\/\/www.apimagazine.com.au\/news\/article\/queensland-puts-up-the-no-vacancy-sign\" target=\"_blank\">very tight rental market<\/a>. <\/span><\/p>\n<p><span>Real Estate Institute of Queensland\u2019s CEO, Antonia Mercorella said among the top five growth performers for apartments for the quarter was Gladstone, leaping 18.4 per cent to a median price of $290,000. <\/span><\/p>\n<p><span>\u201cWhat\u2019s pleasing about the latest results is that, again, it\u2019s not just our capital city performing \u2013 our regional centre property markets continue to benefit from a growth uplift.\u201d <\/span><\/p>\n<p><span>If investors are looking at breaking into one of Australia\u2019s resource-based property markets, Gladstone could be a good choice, Ms Mercorella said. <\/span><\/p>\n<p><span>\u201cFor those looking to make their dollar go a little further, the quarterly median house price remained under half a million dollars in Gladstone, at $405,000.\u201d<\/span><\/p>\n<p><span>Beyond its mining stereotype, central Queensland also boasts thriving\u00a0resources, agriculture, education, health and tourism industries and <a href=\"https:\/\/www.apimagazine.com.au\/news\/article\/central-queensland-yields-growth-drawing-investors-further-north\">is proving a lure to investors<\/a> as rental income continues to rise rapidly.<\/span><\/p>\n<p><strong><span>Jobs available but housing scarce<\/span><\/strong><\/p>\n<p><span>Mining-specific employment is surging, however, the lack of access to housing in these regional areas is making it hard for companies to fill positions.<\/span><\/p>\n<p><span>New data shows that young, <a rel=\"noopener noreferrer\" href=\"https:\/\/www.apimagazine.com.au\/news\/article\/first-home-buyers-on-the-move-across-state-borders\" target=\"_blank\">first-home buyers are willing to move<\/a> and are doing so in large numbers if the opportunities present themselves.<\/span><\/p>\n<p><span>Currently in Broken Hill, the vacancy rate sits at a worryingly low 0.2 per cent. Conditions are slightly better in Port Hedland but still extremely low at just 0.6 per cent, compared to the 2.5 to 3.5 per cent regarded as a balanced market.<\/span><\/p>\n<p><span>Ms Bennett has been seeing the impact of the low vacancy rates first-hand.<\/span><\/p>\n<p><span>\u201cWe have good employment opportunities in the region and very low vacancy rates,\u201d she said.<\/span><\/p>\n<p><span>\u201cThere is a shortage of rental and sale properties and this is making it harder to fill jobs because those needing to relocate are finding it hard to get accommodation.\u201d<\/span><\/p>\n<p><span>\u201cRental accommodation shortages within Broken Hill are affecting projects, including Cobalt Blue\u2019s mining and processing operations, Hawsons Iron\u2019s iron ore project, battery storage operations, renewables and the film industry, and this is not set to change in the short term.\u201d<\/span><\/p>\n<\/p><\/div>\n<p>[ad_2]<br \/>\n<br \/><a href=\"https:\/\/www.apimagazine.com.au\/news\/article\/mining-for-real-estate-gold-in-the-resources-regions?utm_source=API+RSS+Feed&#038;utm_medium=rss&#038;utm_campaign=Latest+Articles\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>[ad_1] Resource-based property markets around Australia, including the Pilbara region in Western Australia, Gladstone in northern Queensland and Broken Hill in New South Wales, have seen substantial growth in property values and rents over the past two years. While the increase in property values is welcome news for homeowners and investors, low vacancy rates in [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2934,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[65],"tags":[],"class_list":["post-2933","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-residential"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v26.9 (Yoast SEO v27.3) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Mining for real estate gold in the resources regions | Urban Buyer: Buyers Agent &amp; Advocates | Best Property Buyers For You<\/title>\n<meta name=\"description\" content=\"Resource-based property markets around Australia, including the Pilbara region in Western Australia, Gladstone in northern Queensland and Broken Hill in\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/royabhishek.in\/urbanbuyer\/mining-for-real-estate-gold-in-the-resources-regions\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Mining for real estate gold in the resources regions\" \/>\n<meta property=\"og:description\" content=\"Resource-based property markets around Australia, including the Pilbara region in Western Australia, Gladstone in northern Queensland and Broken Hill in\" \/>\n<meta property=\"og:url\" content=\"https:\/\/royabhishek.in\/urbanbuyer\/mining-for-real-estate-gold-in-the-resources-regions\/\" \/>\n<meta property=\"og:site_name\" content=\"Urban Buyer: Buyers Agent &amp; 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