Again, the GFC had an impact on house prices in WA but that impact was softened greatly by mining capex spending.
You answer that yourself
So if it wasn't for the mining capex spend in WA, Perth would have taken a real beating during the GFC.
Yes Perth would have taken a much worse beating if it were not for Capex spending. However the GFC is over and people are no longer afraid of an major crash here, most of the market has returned to a normal buying and selling market, with the exception of the top end. Even the top end is moving away from the lows that were available in 2012, it just has a long way to go to get back to 2007 prices so most people are not selling.
Guest
10 Sep 2014, 10:26 AM
You don't think these things mentioned above may have a further impact on iron ore prices resulting in further cost cutting measures and job cuts skamy ?
What is your outlook for china skamy ?
I actually get a lot of good insights on China from people like MIW who post here.
Why did Perth house prices not boom when Chinese house prices boomed between 2007 and 2014?
TED why not sign in ? are you banned or something?
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
Yes Perth would have taken a much worse beating if it were not for Capex spending. However the GFC is over and people are no longer afraid of an major crash here, most of the market has returned to a normal buying and selling market, with the exception of the top end. Even the top end is moving away from the lows that were available in 2012, it just has a long way to go to get back to 2007 prices so most people are not selling.
The GFC is not over.
If it was over, the USA would not still be doing QE and running ZIRP. Europe would not be contemplating QE and running rates of 0.05%.
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
Yes, anyone can point out that there are still projects in the pipeline - I have said so myself - but unless there is a remarkable turnaround, the number of jobs created by the new projects will be swamped by the number that dissapear as the investment boom winds up.
The amount of money that mining is currently spending employing people to do stuff is going to plummet - it takes a vivid imagination to see no negative impact arising from that.
Leftie you know that I was not pointing to the fact that there are still projects in the pipeline. I was pointing out the fact that the large number of long term jobs that have been created by this boom are very valuable for the local economy. House prices in Perth peaked in 2007 and have not returned to these prices in many areas. Yet we have all these extra well paid long term mining jobs.
The FIFO construction workers will return to their home states to a growing residential construction sector which has much better jobs growth potential. Some people claim that these FIFO guys are all stupid and thought the big money was never going to end but this is just not true. Most of my daughter's colleagues know fine well they will return to normal wages and a normal life and they are saving like crazy. Most are normal people trying to get a head start for their families.
Have you not one comment on the Edwards paper? It would appear that you prefer to follow some right wing hack for the Murdoch press, selling you drama and dreams, than even read a piece by a left wing economic thinker who has delivered on long term prosperity for working people.
Elastic
10 Sep 2014, 03:01 PM
So where is Gore Hill? I can understand that doom and gloomers would be referring to Roy Hill in that way, but Skamy? Disappointing.
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
If it was over, the USA would not still be doing QE and running ZIRP. Europe would not be contemplating QE and running rates of 0.05%.
skamy, that's the danger period my love. I hope you are still on here for Xmas new year. I would hate you to jump at the first sign of trouble. You will be needed to convince the few remaining bulls that it's not real. Might take some convincing.
Whenever you have an argument with someone, there comes a moment where you must ask yourself, whatever your political persuasion, 'am I the Nazi?'
Leftie you know that I was not pointing to the fact that there are still projects in the pipeline. I was pointing out the fact that the large number of long term jobs that have been created by this boom are very valuable for the local economy. House prices in Perth peaked in 2007 and have not returned to these prices in many areas. Yet we have all these extra well paid long term mining jobs.
The FIFO construction workers will return to their home states to a growing residential construction sector which has much better jobs growth potential. Some people claim that these FIFO guys are all stupid and thought the big money was never going to end but this is just not true. Most of my daughter's colleagues know fine well they will return to normal wages and a normal life and they are saving like crazy. Most are normal people trying to get a head start for their families.
Have you not one comment on the Edwards paper? It would appear that you prefer to follow some right wing hack for the Murdoch press, selling you drama and dreams, than even read a piece by a left wing economic thinker who has delivered on long term prosperity for working people. Oopps
WA unemployment remains at 5% for trend and has returned to 5% seasonally adjusted and there were 3500 new jobs created.
No sign of any crash here, this is still one of the lowest unemployment figures in the country.
Definition of a doom and gloomer from 1993 The last camp is made up of the doom-and-gloomers. Their slogan is "it's the end of the world as we know it". Right now they are convinced that debt is the evil responsible for all our economic woes and must be eliminated at all cost. Many doom-and-gloomers believe that unprecedented debt levels mean that we are on the precipice of a worse crisis than the Great Depression. The doom-and-gloomers hang on the latest series of negative economic data.
We all heard the stories about tradies heading West to make the kind of salaries normally reserved for senior executives. But Eslake points out that employees in plenty of non-mining industries benefited too, because the tight labour market forced bosses to pay higher wages to keep their staff. Now, however, the labour-intensive part of the resources boom is over, so this extra source of wage pressure has faded. More and more of the projects are in "production" – which means they're delivering profits to their largely foreign shareholders, but employing far fewer people
Quote:
But it's also true that trade-exposed businesses do face significantly higher labour costs than they have in the past. And a key reason for these cost pressures is – you guessed it – the mining boom.
Quote:
It would certainly make life a lot easier for bosses and workers in the trade-exposed sector if the Aussie dollar would simply fall further than it has. That's why the Reserve is constantly trying to talk down the currency. But failing that, slower wage growth and gradual improvements in productivity will also help to bring down the real exchange rate. In the long run, this can make these businesses more internationally competitive, even if the dollar stays high. All of which is good news for trade-exposed industries that we'll need to help fill the void left by the fading mining boom. For wages, though, all signs point to soft growth persisting for a while yet.
Looks like we are moving to the next stage of due diligence of acquiring a WA business located in Henderson.
I have a funny feeling that I know who you are talking about.
Anything to do with submersibles?
Matthew, 30 Jan 2016, 09:21 AM Your simplistic view is so flawed it is not worth debating. The current oversupply will be swallowed in 12 months. By the time dumb shits like you realise this prices will already be rising.
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