Posted on 7. February 2012 15:22 by qbentleym
“Decades of wealth from “once-in-a generation” boom as commodities exports forecast to hit $480bn” (The Australian, September 09, 2011)
AUSTRALIA stands poised to capitalise on an economic transformation unparalleled in the nation's history, with a resources and commodities boom capable of generating $480 billion of exports in the next 20 years and creating 750,000 jobs. Perth city is at the epicentre of this explosion, with Australia’s largest mining companies all having their offices in or near the city centre.
A landmark report by ANZ Bank and economic consultants Port Jackson Partners, released exclusively to The Australian, finds that almost $2 trillion needs to be invested in the Australian economy for the nation to capitalise on the mining boom caused by the developing world's march towards urban industrialisation This history making economic transformation has the potential to generate $480 billion worth of exports in the next two decades and create a staggering 750,000 new jobs according to a report in the Australian newspaper.
As developing nation’s race toward urban industrialisation, experts say demand for our resources will soar and the resulting mining boom will be monumental, causing a new economic climate to emerge in Australia with mining at its foundation. The report finds a new economy will be formed, based primarily on mining, but the benefits will flow through to the services, education and tourism sectors. The report urges our government to encourage investment, thereby increasing Australia’s economic output in the face of what ANZ’s chief executive Mike Smith calls a “major structural shift” that will see Australia enter a “supercycle”.
"This is not the stuff of a routine commodities boom but rather a more fundamental global process under way that will see billions more people achieve middle-class living, and it has decades to run," the report says. “Australia is currently experiencing the kind of ‘problem’ that makes us the envy of the rest of the developed world,” Mr Smith writes in the Australian newspaper.
The ANZ bank has forecast that the Australian dollar could hit $US1.25 because of sustained commodities prices and higher global infrastructure investment. “If Australia can expand capacity rapidly enough, export revenues from hard and soft commodities could reach half a trillion dollars in real terms by 2030. "Australia is currently experiencing the kind of 'problem' that makes us the envy of the rest of the developed world," Mr Smith writes.
"The scale of investment required is unprecedented." Both these developments owe a lot to rising demand from China and, to an increasing extent, India and Indonesia, as they continue their process of development, urbanisation, and strong growth of their middle classes, with rising disposable incomes to match.
“Our family has lived in various locations outside the US for 20 years. We had never seen a hot rental market like Perth, where property managers often didn’t return phone calls, using text messages to advise properties had already been rented. We were working full time to schedule and view even one property per working day. Our first and second applications filed against multiple applicants.”Alan and Linda.
Perth faces a crippling housing shortage that will leave it tens of thousands of homes short of demand, driving up prices beyond many people, according to the Housing Industry Association report into WA housing into 20201. They say Perth had 17,400 shortfall last year, with the shortage to reach more than 70,000 this decade.
How to take advantage of this once in generation resources Boom?
It’s obvious that as companies relocate to Perth, as they send their overseas executives and interstate staff to Perth, and as tens of thousands of jobs are created, and as migration explodes to keep up with demand, these people will need housing, apartments and accommodation.
Someone has to supply this, and with current and planned supply levels falling well below demand, prices and rents in Perth can only go one way. Mining and resource companies have the Head Offices in the Perth CBD, so it is logical people will want to live nearby. In fact, Agents are already reporting enormous demand for accommodation in or near the City centre.
Accommodation that simply doesn’t exist yet, as Perth has been the last city in Australia to embrace the inner city living.
It’s certainly here now. And someone needs to supply this accommodation.
It may as well be you.
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