We’ve all heard about how the mining boom is “over.” We’ve all heard the predictions of gloom and doom from the more pessimistic commentators in the media. While the mining boom may indeed be “over,” WA is still reaping a lot of benefits from the presence of the resource industry. The post-mining boom economy is doing just fine, despite what you may have read.

Mining in Australia has become competitive and mining companies have had to tweak their operations to cut their costs. This has involved cutting some of their labour. However, don’t think for a minute that the resource industry doesn’t still have a major presence in WA and don’t think for a minute that they aren’t exerting a positive influence on our economy.

What the Statistics Say

Opinions may vary but cold, hard facts don’t. A survey conducted in late 2013 by RP Data showed that the top 10 towns in Australia for rental yields were all mining towns. Newman topped the chart at 14.0%, while South Hedland produced yields of 9.5% for third place. Kambalda came in fourth and Port Hedland came in fifth.

Newman’s yield of 14.0% for houses came in first. Pilbara had the highest rental price for houses with $2,165 per week and the highest price for units at $1,300 per week.

Our Humble Opinion

The mining boom is “over.” We get it. However, that doesn’t mean that the mining industry is dead, nor does it mean that the mining companies have taken all of their jobs elsewhere. There are still enough jobs in the mining industry to produce the top ten rental yields in all of Australia.

The mining industry has spent a lot of money on buildings and equipment. There are still a lot more resources available to mine in WA—mining companies won’t be leaving anytime soon. In addition, the transport industry has grown around the mining industry, as have many smaller market segments.

Also, infrastructure construction in mining towns and along shipping routes has been increased.

There are still plenty of great jobs and investment opportunities in WA. Our economy is alive and well.

Call (08) 9527 1800 to learn more about investment opportunities in Rockingham, Kwinana and Baldivis or if you’re interested in getting a home loan.