CLIENT RELEASE
“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.
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 here 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. It forecasts that commodity export earnings will grow from $210bn last year to $480bn by 2030, shoring up the nation's revenue growth.
The number of workers employed in the mining industry is expected to more than double from 693,000 to 1.45 million.
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.
“The scale of investment required is unprecedented.”
"Australia is currently experiencing the kind of 'problem' that makes us the envy of the rest of the developed world," Mr Smith writes.
"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.
"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 company 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.
Someone needs to supply this accommodation. It may as well be you.
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