Unit rental rates have generally recorded quite strong increases over the past 12 months across the regions. This is likely due to the fact that unit rents are typically cheaper than those of detached houses and with many companies becoming more conscious of the costs associated with housing mining employees they are looking for more affordable alternatives such as units.
Overall, many of the major regions linked to the mining and resources sector have recorded increases in both median sales prices and rental rates over the year. With commodity prices seeming to have recently peaked, based on the RBA Commodity Price Index prices are down by -9.8% from their peak. Despite the recent fall, thanks to the surge in commodity prices since early 2009, the index remains 13.2% above the previous September 2008 peak. Whether the fall away in prices is enough to dampen the sector is yet to be seen.
A number of miners have already flagged that they are going to cut back on spending and some have already announced job losses. With the rate of growth in the Chinese economy slowing to a more sustainable pace it will be important to see what impact these factors have on mining communities over the coming year.
This article first appeared on RP Data.
