Monday 24 June 2013

Commodities Buzz: Mining Slowdown To Affect Australian Housing Market

The slowing of the mining boom and public sector cuts in Australia will lead to a dramatic drop in the number of new homes being built in parts of the country, according to a new report. However, localised population increases mean some pockets are set for a building boom, the report also found.

The BIS Shrapnel Regional Building 2013-2015 report identified the Coffs Harbour-Grafton area on the north coast of NSW as the No.1 growth area for new dwellings next year with a forecast increase of 52% for 2013/2014.

Alice Springs will experience the biggest slow-down in new buildings, with annual commencements expected to drop by 43% over the same period. Western Australia's Pilbara and Kimberley region will also slow significantly by 36% and 22% respectively.

Major investment in the Pilbara had driven strong employment and population growth until recently, the report found, however it said this was unsustainable. Building activity in the Pilbara and Kimberley regions is expected to remain high by pre-mining boom standards.

In Victoria, areas hit by recent factory closures such as Geelong and Hume will sustain a drop of a projected 11% each. The Australian Capital Territory (ACT) will see a 32% reduction in new dwellings as public sector jobs are cut, the report said.
Source by Commodity Insights

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