Property sector to slow with mining industry
Residential property markets of the country's mining hotspots may be impacted by falling commodity prices, on report has suggested.
A data analysis by RP Data revealed some resource-rich regions had enjoyed the flow-on effects of the thriving industry, experiencing real estate price increases averaging more than ten per cent a year in the last decade.
However, one expert has tipped the effects of falling commodity prices may trickle through to the property sector, Fairfax Media reported.
RP Data research analyst Cameron Kusher expanded on the idea: "The point with the mining regions is a lot are not very diversified so they are completely reliant on the one sector of the economy.
"Maybe some of the more diversified areas will hold up better, and areas like Gladstone where they have new mining sectors like coal seam gas will do better."
However, he said with slowing demand from China pulling down commodity prices, the effects would impact those with property investment in mining regions.
Queensland's Isaac Council area experienced the most property growth in the last 12 months, with the average house fetching $572,000 - 30.7 per cent up on the previous year.
In comparison, the less remote area of Gladstone saw a 13.4 per cent increase in median house prices, with the average dwelling selling $465,000.
Mr Kusher said global trends combined with consumer demand would mean it was unlikely property price growth would continue as it has.