If you’ve been following the news, you’ve likely heard the grim reports about Australia’s mining losses due to the steep decline in major commodity prices.
A recent CoreLogic RP Data Pain and Gain report indicated that property in major mining regions is being sold for a loss as the mining industry lays off thousands of people and jobs move or disappear completely. Mining is still a highly important Australian industry, but it would seem the property market is suffering in these regions.
What does the downturn in the mining industry really mean for rural real estate?
Well, it could be that people are improperly determining that the property market in those regions is more heavily dependent on the mining industry than it really is and are looking at it from the wrong perspective.
Despite job losses in rural mining regions, people aren’t necessarily moving out of the areas to look for work. Many people who live in rural real estate or who are looking to purchase rural real estate are outside of the mining industry and the retiree demographic; many live in or are looking for rural real estate for a hobby farm or lifestyle plot for a rural weekender.
Rural Australia Offers More than Mining Jobs
With a more connected world and workplace, more and more people have the flexibility to work from home or are creating lifestyle businesses in which they can work from home or anywhere in the world.
While the decline in the mining boom may be decreasing buyer demand as the jobs dwindle, it’s important to remember that rural Australia has so much more to offer than just mining jobs.
A Quick Look at City Migration to Rural Areas
According to data released by the Australia Bureau of Statistics, 16,000 people moved out of Sydney over a single year (possibly due to rising property prices). Rural communities are often just as connected and offer a more affordable place to live and work.
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