WA Mining Capital Expenditure figures released today are good news for the property market according to REIWA CEO Cath Hart.
“Mining has a strong link to the property market; the mining sector is a major employer and employment opportunities drive population growth, which then drives demand for housing,” she said.
“The figures released by the ABS today are the strongest since 2016 and the forecast expenditure is also rising, which is a positive indicator for the future of the property market.”
According to the ABS data, expenditure in the year to December 2023 was over $31 billion, the highest since September 2016.
Forecast expenditure for 2024-25 has also increased.
“The latest projections show mining capital expenditure for 2023-24 is expected to be 15.6 per cent higher than the previous financial year, and 32.4 per cent above the long-term forecast released just a year ago,” Ms Hart said.
“In addition, the longer-term forecast expenditure for 2024-25 is 8.9 per cent higher than what was originally forecast for 2023-24.
“While there is a lot of discussion at the moment about nickel and lithium, they are a small component of the mining industry. These figures indicate the confidence in the mining industry overall and are good news for the broader economy and the property market.”