Australia’s mining industry is surging and it is expected to create over 69,000 jobs and majority of these is in Queensland. Queensland’s mining boom will deliver more workers and surely will expand the state’s economy.

So what does this have to do with property investment? The mining boom is increasingly affecting the rise in the property market. As more and more workers arrive at Queensland to take advantage of the surge in the mining industry, the demand in properties, especially residential properties also rise. This is the best time for residential property investors to make an investment in the property market and enjoy positive rental returns.

While other states across the country struggle with the listless flow in the property market, Queensland’s housing market is increasingly showing a different result. The continuous climb in housing demands results to residential property shortage within the mining centers. And shortage means more properties that need to be built to accommodate more new residents.

The mining boom is existent and existing at its best. The regions are benefiting from very strong demands which also causes for the house prices to rise up. This is a great opportunity for residential property investors.

Growth in Mining Towns

The mining towns in Queensland are expected to see continuous growth. The Liquefied Natural Gas industry development in Gladstone has grown strongly and the median house prices also kept with the pace. LNG raised the median house price by 8.9 per cent to $478,000 over the quarter and was up to 15.6 per cent over the whole year of 2011.

Its neighbor Mackay’s median house price has grown 2.5 per cent to $408,000. Toowoomba increased 2.6 per cent to $297,000 last year. Rockhampton is also showing the same positive results and on to moving forward.

Not only are the median house prices seen to be rising. The rental yields are also on its feet reaching for high returns for properties. Cloncurry has the gross rental yield of 11.4 per cent and Isaac with a gross rental yield of 11.1 per cent. Both have the second and the third highest indicative gross rental returns around Australia.

Moranbah aso shows strong rental yields of 15 per cent as the pace of mining activities speeds up. Moranbah median house prices also rose at 5.2 per cent in the past year to $463,000. According to RP Data, Moranbah sold 109 houses out of 131 properties sold last year. According to REIA Gladstone and Isaac shows the highest rise in median house prices in any regions outside of South East Queensland and are almost in equal growth with Brisbane.

While there are already high surge in mining towns such as Gladstone and the rest, there is still expected rise in the following years. The Global Financial Crisis was not something to fear about as the mining sector continues to lift up the Queensland economy. As a matter of fact, new multi-billion dollar mining projects are anticipated as this will not only benefit the mining towns but the state as a whole. Goonyellah and Peak Downs coal mines are some of the coal mining projects and developments on track.

Brisbane also benefits from the developments of the mining industry. Although Brisbane is far and the mining centers are a flying distance, it also experiences strength in its property market. This is due to the fact that mining companies create a market for rental properties for their short term professionals.

Contractors are also creating abodes within Brisbane to have easy access to the airport every time they go for work in the mining towns. The demands for more rental accommodations and new residential developments is still rising as the Queensland government required 80 per cent of its BMA workers across operations to live within the region where they work.

400 homes will be built as required of the BMA. 160 homes will be built in Moranbah in June 2013 and the other 240 will be built across the Bowen Basin in the next four years.

Queensland Rising

Queensland has been a performer ever since. With over $50 billion dollar planned projects, it has already grown at 3.5 per cent on the third quarter of 2011.

Brisbane’s commercial market continues to lift the property sector as it shows the significance of the role of the property market linked with the rapid mining boom towards the economic development of the whole state.

Although there is a surge in the mining industry, the property sector is one vital component in achieving the desired and continues economic growth of the state of Queensland. Both the mining industry and the property market are needed to achieve the economic goal. The solid link between the intense resource boom and the property market are the key to achieving more expansion and reaching the economic growth.

The increasing and expanding companies that lead the resource sector continue to demand more office spaces especially for large work space users for their employees. The ever increasing business activities attract more job offers, more employers, more members of the population and demand for more rental and new dwellings.

So when you ask when the best time to invest in residential property is, there is no better time than now. The mining boom and further expansions and developments within the state are the keys for higher rental returns for residential property investors. Queensland’s mining shows no sign of turning back. The only way to go is forward and that’s how the state’s status is currently taking.