Australian boom towns
Thursday, 13 March 2008
Marko Barosevic
Property investors are keenly watching the pipeline of major mining projects in hope of spotting the next boom town.
A new report, by property commentator Terry Ryder titled National Top 12 Boom Towns , reported in The Australian Financial Review today, has found house prices in Broken Hill NSW rose 35% last year. Other prospective boom towns include;
- Ceduna – west of Adelaide
- Wonthaggi – in Victoria’s Gippsland region
- Wandoan – Darling Downs, Queensland
- Geraldton – Western Australia
- Gladstone – Queensland
- Newman – Western Australia
- Zeehan – Tasmania
- Whyalla – South Australia
- Mt Barker – South Australia
- Cloncurry – Queensland
Record investment is being poured into the resources sector, with billions spent on exploration, project expansion and heavy infrastructure. That all goes hand-in-hand with workers, families and services. In turn it is a boon to forgotten and distant towns, sitting near tonnes of iron ore and precious metals.
The potential high returns in these towns is offset by notable risks. The investment is highly reliant on big mining or infrastructure projects going ahead. And no boom lasts forever.
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