According to Christopher Joye, Director of Property Research for Rismark, “For Australia’s capital city and regional markets, this was the single best monthly result since December 2010, and augurs well for housing activity during the first quarter of 2012, which are we project will rebound solidly.” The house price rise will urge some hope that housing market is stabilizing and have mild resurgence in 2012 in which the interest rates dropped this previous month and have continuous income supported by the mining boom.

“Despite warnings from the major banks that funding pressured meant they will have trouble passing in all the RBA”s rate cuts to customers, they in fact have done that, “Mr. Joye said. The mortgage market in Australia lead by the big four banks in which they needs to become competitive and have sustainable flow of credits. The RP Data-Rismark figures that capital city home value index rose by 0.1% November from October and its first increase since 2010. Because of the full employment, it very difficult to walk away from  mortgage because of the solid income growth and regulations. Global investors view considered that Australia’s economy is a strong economy but they cite that property market is the weakness.

Based on the Statistical Bureau, Australia Gross Domestic Product (GDP) rose 2.55% in the months till the end of September from the same period a year earlier. Australia’s economy grew more than expected in the third quarter because of the building and mining activity. Aside from that, Analysts expected a gain of 2.1% and the Australian dollar rose slightly, there was also second rate cut and expected the next inflation.

According to Brian Redican from Macquarie, “We see solid growth right through next year, which is diametrically opposite to what the most of the developed world can look forward to.” Analyst expects that Australia’s Economy will be better placed compared to many others. One of the contributors of having good economy is the continuing health of the resource industry and that is the mining industry. The data showed that business contributed 2.5% to GDP growth, engineering construction rose 31% and household consumption grew 1.2%. Therefore, Economy’s growth should continue into next year and the followings years.


According to Property
Investment Specialist, Rick Otton, “such growth
in our mining sector has lifted work opportunities across the board for
Australians willing to relocate and the associated demand for housing in many
areas has become unprecedented. Australia is expected to experience a mining
boom which brings out huge opportunities for the property investors and Perth
identified as the home base and put pressure in both purchase and rental market
however it attracts opportunities in Australians Property Investment. Mining
boosts construction in Australia driven by a lift in engineering work in the
mining and energy sectors.

According to RP Data
figures, “Mining outposts dominate the nation’s list of most expensive rentals,
with remote rural dust bowl on par with Sydney’s elite suburbs.”  Housing demand has affected rental prices in
mining towns to such a degree that it cost almost five times and the outrageous
housing costs in mining towns are widespread. Mining companies boost the
economy of Australia and makes opportunities for property investors but the
house prices and rents are going to rise and renters or home buyers are not
able to afford the rent. Mining in Australia gives a clear indication that the
Australia is expected to experience a mining boom creating huge opportunities
for the property investors to take advantage of the property rents and house

According to the
latest quarterly report by CommSec, “Western Australia leads the nation in
overall economic growth and is strong in retail spending, construction work and
population growth. WA is clearly the nation’s strongest economy, underpinned by
Asian demand for mining resources”. Because of the rapid expansion in the
resources sector has put WA “head and shoulders above” and WA has the lowest
unemployment rate.

Western Australian’s
Economy is judged as the strongest in the nation because of the continued
strength in the mining and engineering sectors, soft job market, and WA has
done everything to secure the best-performing state. There is still hope with
the state should grow and more developed, more benefited in coming months
particularly in high population and firm home lending. It is the start that all
business will grow and more people will visit and stay in WA to make the Property
market rise.