House prices fall in Western Australia
House prices have continued to fall in West Australia, as demand for property continues to decline. House prices have fallen in Perth for the last 6 months, with prices now at levels seen back in early 2013.
For a long period of time, many in the mining industry enjoyed the riches generated by a booming Chinese economy. They spent big on building infrastructure and modern utilities, something iron ore is a key ingredient for.
Now, with demand finally falling below supply, the prices have tumbled. Within 12 months, over 20,000 jobs have been shed from the mining industry. And despite the unemployment figures suggesting more people are beginning to enter employment in Western Australia, those figures don’t consider those moving across from other parts of the country.
Many companies are opting to utilise fixed term contracts, as the supply of staff gives them good flexibility when larger projects become available. These leave little stability for those trying to settle a family in the area.
Analysts claim the industry needs to create 1,500 jobs a month to maintain the current unemployment rate. If this is to be achieved, Western Australia needs to diversify its employment sector to offer work outside of the mining industry. If nothing is done to attract new employers to the area, it could see much of the market destabilised beyond repair.