" China's latest announcement just pricked Australia's property bubble.
News for the Australian Property Market raises concerns as China announces a new energy conserving policy that will cut demand of coal dramatically after 2015.
Speaking about the Chinese Government Energy Conservation plan Mr Jiang Kejun, as spokesperson for the Chinese Government told the media ''Coal consumption will peak below 4 billion tonnes,'' by 2015.
Over last 12 years demand for coal from china has increased 2.4 billion tonnes, or 163 per cent, the news from China makes it clear that future demand will a return to much more moderate levels.
Commenting on the news, Mr Antonio Santolo, CEO of The Property Advocacy Group of Australia and founder of the popular free advocacy website mypropertycoach.com.au states “that this news will send shock waves throughout our mining regions” indicating a lot of smaller players and start up projects will struggle to find demand for their product at a price that will make it viable to dig the stuff out of the ground” Santolo further explains how there is already strong evidence of a more balanced property market in the regions, “the money was made in these areas over the last 5 or so years, the people that had the foresight or the luck to hold property at that time done very well, however like any Real Estate purchase the profit is in the buying, so everyone that saw the rise and jumped on the band wagon most likely brought at prices that were not fundamentally sustainable. This is going to leave a lot of people in financial stress if markets start returning to the more sustainable areas”
Santolo predicts a large decrease in demand for long term Rental accommodation with a shift to portable accommodation in regional areas over the next 2 -5 years with miners looking for a flexible workforce, Santolo explains “When guys like Gerry Harvey are getting involved in temporary mining accommodation units there is a reason why, They obviously feel the money is to be made in supplying the accommodation as a business and are not relying on the local market to dictate prices”
Santolo recommends anyone who is holding property as an investment in these areas needs to speak to an independent advisor now, “like any problem, tackling it head on will make the outcome a lot better that sticking your head in the sand”Free Property Advice & Help