End of Boom Doesn’t Equal Doom
What will happen when the boom ends? It won’t be the end of the world, according to BIS Shrapnel, with home loans to become the focus. They say the other side of the mining investment boom won’t be so bad, with dwelling investment about to take off in most of the country. “Mining investment will soon stop growing,” said senior economist Tim Hampton. “It should remain high but it will stop growing. In its place we see an upswing in residential property investment from later this year.
The carbon tax has come and gone and households have realised it isn’t the end of the world; in fact, they’ve more money in their pockets than they had.” Mr Hampton said the return to housing investment will be driven by a short supply in New South Wales, Queensland and Western Australia. BIS Shrapnel is forecasting economic growth of 2.9 per cent a year for the next five years.