After the Mining Boom
People need not fear the end of the mining boom, with forecasts suggesting that the other side of the boom won’t look all that bad after all. BIS Shrapnel says that dwelling investment is poised to take off across the country, which will help the situation of the mining boom stopping. “Mining investment will soon stop growing,” said senior economist Tim Hampton. “It should remain high but it will stop growing. In its place we will see an upswing in residential property investment from later this year.”
Mr Hampton said that with people seeing the carbon tax hasn’t been the end of the world, they’ve ended up with more money in their pockets and, hence, housing investment and home loan boosts was likely. BIS Shrapnel is forecasting economic growth of 2.9 per cent a year for the next five years. NSW is expected to lead the new housing investment boom.