Mining towns boast highest property growth
Those looking for a profitable property investment should look no further than the resource-rich regions of Western Australia and Queensland, with the states trumping the nation in real estate growth.
According to data from the RP Data Buy vs Rent report, mining towns in Western Australia and Queensland are the strongest players in the residential property markets, recording the highest growth in house prices than any other region.
Dysart in central Queensland and Moranbah in the Bowen Basin are two stand-out performers, revealing a 3,992 per cent and 1,919 per cent increase in property prices respectively between 2002 and 2012.
The staggering growth rates may attract the interest of investors who are looking to accumulate wealth through real estate, with the profitable properties delivering high yields for their owners.
Mining regions in Western Australia revealed a similar trend, with house prices in Baynton spiking 900 per cent in the last decade, 500 per cent in Port Hedland and 250 per cent in Dampier.
There are however a number of considerations that property investors interested in capitalising on real estate opportunities in resource-rich regions should take into account before signing on the dotted line.
The lifespan of mining projects is one such consideration, with demand in an area's real estate likely to dissipate with the demise of employment opportunities in the region.