The Advisor – Australia’s mining boom has ended and been replaced by a housing construction boom, according to a report released by the Commonwealth Bank.

However, mineral-rich Western Australia continues to be Australia’s best-performing economy and the strongest in housing finance. It is also second in economic growth and third on housing starts, according to the report.

Murray Brede from Perth firm Loans Café said it was not so much the mining boom that ended but the construction phase of the mining boom.

“And that’s where a lot of people have left. So the vacancy rates in Perth are a bit higher now he told The Advisor

Mr Brede said rental prices had also fallen in the metropolitan areas of Perth. “So in some cases the mortgage holder might have lost about 20 – 30 per cent of their rent, “he said.

Future success in new housing in Western Australia would depend on how negative gearing was treated in the May 8 state budget.

“It’s a really critical thing,’’ he said. “If they say that you can only negative gear property that’s going to really help new housing, and perhaps stifle existing housing.

“So investors, I think, are holding off a bit now… there might be a real change in the landscape next week.”

The report by the Commonwealth Bank placed NSW first in new housing construction, with Sydney and then Melbourne coming out as the highest performing cities.

John can be contacted on 0749722081 or 0410433919. You can also email him at jwhitten@ihl.net.au or look him up on the net www.ihl.net.au. John Whitten is a credit representative (CRN 399796) of BLASSA Pty Ltd (Australian Credit Licence No 391237