Post Mining Boom… What’s Next?

The construction industry could be the hero that puts Australia’s balance sheet back in the black according to Herron Todd White, Australia’s largest Independent Property Advisory group.

After the mining boom has come to an end and is unable to provide the jobs and economic benefits it has in the past, where will Australia look to fill the gap?

The manufacturing industry? Many think not. Australia simply cannot compete with super cheap labour costs from developing countries.

“Well there is one thing that we do make that can’t be bought over the internet from low-labour-cost countries and that can’t be shipped to your address by a remote control drone – and that’s housing.”

“Bricks and mortar, literally, is once again the tangible asset class on which we may all end up relying. Plenty of pundits amongst our property markets are willing to step forward and highlight construction as the industry to pick up mining’s slack and keep the balance sheet in the black. It creates jobs, turns over cash flow and keeps a roof above everyone’s head.” The report stated

As the construction industry begins to gain momentum the big question now is; can it accommodate the rapid population growth that is inevitable in Australia over the coming decades and can the construction industry bring the same (or better) economic benefits as the mining boom?

Auction Results:

Sydney: 78%
Melbourne: 72%
Brisbane: 33%
Adelaide: 86%
(*Source APM)

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