Perth Property Boom predicted to follow Lithium Boom

Discussion in 'Property Market Economics' started by Alex P Keaton, 8th May, 2018.

Join Australia's most dynamic and respected property investment community
  1. Alex P Keaton

    Alex P Keaton Well-Known Member

    Joined:
    14th Nov, 2017
    Posts:
    458
    Location:
    Perth
    Hope this comes true!


    Perth property boom predicted to follow lithium boom - Smart Property Investment



    The announcement of a new lithium refinery is predicted to create a boom in the Perth market.

    The refinery, located in Kwinana, is expected to create hundreds of jobs and will transform the Perth market, according to Daniel McQuillan, managing director of Investwise.

    “Last year, property sales in Perth were the lowest in more than 25 years and even lower than during the recession of 1990 when the city was half the size,” Mr McQuillan said.


    This is because of a major crash in consumer confidence following the resources boom fuelled by the massive investment in iron ore.

    "Western Australia is now in the box seat to become the global supplier of lithium throughout the world and this will result in a new resources boom which will be sustained because the processing of lithium will take place in Western Australia, creating jobs beyond those in purely construction of the mine sites as occurred during the iron ore boom.”

    Because of this investment, Mr McQuillan claimed consumer sentiment would surge, especially due to major European countries turning away from petrol and diesel.

    “The recent announcement last week that the UK would ban the sale of new petrol and diesel cars by 2040 following a similar move by France is setting the stage for this huge boom in lithium mining in Western Australia,” he said.

    “There are already $2 billion in lithium projects in the pipeline in the state with more than 1,000 employed in the sector which is likely to more than double or treble in the next few years.

    “Not only will thousands of Western Australians be employed in mining lithium but also in the down processing of the mineral.”

    The refinery will be supplemented with the already-existing $400 million Tianqi processing plant, which will see lithium concentrate being turned into lithium hydroxide. Lithium hydroxide sells for ten times the amount of lithium concentrate.

    “This downstream processing will create thousands of new sustainable jobs in Western Australia which will have a major positive impact on the local property market moving forward,” Mr MQuillian said.

    “Lithium could have a similar impact on our economy during the 21st century as the discovery of oil, and the demand for petrol power cars had Saudi Arabia and the other oil rich Gulf countries had during the 20th Century.

    “Western Australia has still a relatively small population and [a] lithium driven economic boom will result in a huge demand for property as people move to the state to secure a better financial future for themselves.”

    Mr McQuillian said that he sees investment in the medium-to-long term paying off the most, and recommended they get in now before the effect of the lithium boom kicks in.

    “Property prices in Perth and the other major regional areas of Western Australia are now [at] rock bottom so astute property investors will be buying at the bottom of the property market and can look forward to a major increase in real estate values moving forward as the global green boom gains momentum,” he said.
     
  2. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    3,795
    Location:
    Perth, WA
    Nah, I'm not buying it.
     
    Perthguy and MTR like this.
  3. radson

    radson Well-Known Member

    Joined:
    4th Jul, 2015
    Posts:
    1,541
    Location:
    Upper Blue Mountains
    Totes agree. Hubris at its finest
     
  4. Alex P Keaton

    Alex P Keaton Well-Known Member

    Joined:
    14th Nov, 2017
    Posts:
    458
    Location:
    Perth
    Well I’m trying to keep optimistic :) fingers crossed
     
    Marg4000 likes this.
  5. Westminster

    Westminster Tigress at Tiger Developments Business Member

    Joined:
    13th Jun, 2015
    Posts:
    8,267
    Location:
    Perth
    Hundreds of jobs won't transform the market

    If 10,000 jobs could actually be created by it then it will be helpful. Otherwise it will just take up some of the people still needing work after the last peak resources/construction boom
     
  6. C-mac

    C-mac Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    1,321
    Location:
    Sydney
    Agree with these sentiments.

    Hard to imagine any new mining venture - even on a scale like this one - generating too many 'human' jobs, in any case.

    However if this project occurs in tandem with other economic prospects for the city of Perth, then perhaps this could assist a recovery?
     
    John_S likes this.
  7. Prendergast

    Prendergast Member

    Joined:
    8th May, 2018
    Posts:
    5
    Location:
    QLD
    180 jobs created in Kwinana. Where's the boom?
     
  8. Kangabanga

    Kangabanga Well-Known Member

    Joined:
    21st Jun, 2015
    Posts:
    1,446
    Location:
    Brisbane
    Problem is lithium prices are now on a downtrend as Chile the biggest producer is now massively ramping up production. So those new mines coming on this year may actually lose money right from the get go.
     
    mrdobalina likes this.
  9. Jess Peletier

    Jess Peletier Mortgages, Finance & Property Strategy Aust Wide Business Member

    Joined:
    18th Jun, 2015
    Posts:
    6,135
    Location:
    Perth WA
    Rockingham. ;)
     
    Prendergast and Perthguy like this.
  10. Aaron Sice

    Aaron Sice Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,588
    Location:
    Ocean Reef, WA
    Anyone know where you can get a job in Lithium? Asking for a friend.
     
    mrdobalina, Perthguy and JL1 like this.
  11. theperthurbanist

    theperthurbanist Well-Known Member

    Joined:
    5th Aug, 2016
    Posts:
    755
    Location:
    Perth
    Forget the job, just tell them to buy a property and retire... apparently there’s a boom coming!
     
    muller23 and Sasim like this.
  12. Aaron Sice

    Aaron Sice Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,588
    Location:
    Ocean Reef, WA
    *facepalm*

    Perf is gonna boom to the moon
     
  13. Rex

    Rex Well-Known Member

    Joined:
    12th Feb, 2018
    Posts:
    802
    Location:
    Perth
    Shut up guys! Let's get out stories straight.
    If anybody asks - Perth's gonna boom and now's the time to buy, ok? ;)
     
  14. AndyPandy

    AndyPandy Well-Known Member

    Joined:
    23rd Feb, 2017
    Posts:
    279
    Location:
    Sydney
    BREAKING NEWS: Perth is predicted to be the next Brisbane. Experts say the 'Hype Perth' thread is going to have a thousand pages on propertychat.
     
  15. highlighter

    highlighter Well-Known Member

    Joined:
    2nd Jun, 2016
    Posts:
    930
    Location:
    Australia
    It's hard to predict these sorts of booms, but I do think Perth has returned to being reasonably priced, and may well look like a bargain/oasis of stability in comparison if Sydney or Melbourne continue receding. I think this is one of the reasons Adelaide is also benefitting, and perhaps Hobart (being tiny it's harder to tell as a swathe of new supply can skew medians upwards).
     
  16. KrustyDaPizza

    KrustyDaPizza Well-Known Member

    Joined:
    13th Jan, 2018
    Posts:
    63
    Location:
    Earth
    You need many humans in the development phase. But in the production phase, it's just mostly machines.