Mining crunch stress and house prices

Mining crunch stress and house prices
Mining crunch stress and house prices
Strewth, you know things haven't been hunky dory for housing markets in your region when the central bank starts profiling financial stability risks in its bi-annual Review. 
Housing loan arrears continue to deteriorate in the mining regions of Western Australia and Queensland.
I have actually heard much about this already from various sources - in some small mining towns the situation is beyond chronic - but now it's starting to feed through to the official data.
Interestingly, nationally applications for property possession are still declining as a share of the total dwelling stock. 
But clearly this is not the case in mining hotspots. 
High vacancy rates, falling rents, and falling prices are hammering property investors in mining regions, reported the Reserve  Bank of Australia (RBA).
Banks have reported that in some regions even with big price discounts properties can't be sold.
The only minor consolation or "cushion" for households in aggregate is that in some of the worst-affected regions mining companies own a high proportion of the dwelling stock, so personal administrations, while rising in mining regions, nationally remain close to 15-year lows.
Though I doubt this feels like much of a consolation if you're the one stuck with an illiquid and depreciating asset.
The RBA profiled the Pilbara and the Kimberley region in coastal Western Australia. 
And in Queensland, the RBA took a shufti at Townsville, Mackay, the Bowen Basin, Central Highlands.

Mining crunch stress and house prices

PETE WARGENT is the co-founder of AllenWargent property buyers (London, Sydney) and a best-selling author and blogger.

His latest book is Four Green Houses and a Red Hotel.

Pete Wargent

Pete Wargent

Pete Wargent is the co-founder of, offering affordable homebuying assistance to all Australians, and a best-selling author and blogger.

Mining Residential Investment

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