What to expect from a Bowen Basin property investment
The Bowen Basin has become a hub of investment activity over the past few years, not least because of the opportunities presented by the mining boom.
Although the region may lately have experienced lows, hopes are building over the Abbot Point coal terminal, which could reinvigorate the market.
With investors still making their way to the area in search of Queensland rental property, they will no doubt be asking exactly what it has to offer and whether it is worth further investigation.
So where exactly is the Bowen Basin and what opportunities does it present to would-be property investors?
Bowen Basin – an overview
The Bowen Basin is an area that spans in excess of 60,000 sq km across Central Queensland, covering some of the largest coal reserves in the country.
It encompasses the area from Theodore in the south to Collinsville in the north, making it one of the most significant places for resources activity over recent times.
The major coal producing region is believed to have one of the biggest deposits of bituminous coal in the whole world, so it is easy to see why mining companies have been so keen to establish themselves in the area.
Within the Bowen Basin there are a total of 15 different communities, each offering its own advantages to anyone seriously considering property investing in the area.
Coal mining in the Bowen Basin
Estimates suggest there are currently around 34 coal mines in operation in the Bowen Basin, which are responsible for mining approximately 100 million tonnes of coal every year.
As a result, the region is responsible for around 83 per cent of Queensland's coal production, making this one of the most significant mining regions in the country.
Mining contracts are still being awarded to some of the largest companies in the world, showing that there is still plenty of life in the industry yet.
For example, in recent weeks, Leighton Contractors was awarded a three-year contract for the Isaac Plains open-cut coal mine close to Moranbah, which is expected to create around 160 jobs.
Meanwhile, a new coal mine located in the region is predicted to generate 100 local jobs thanks to efforts from Carabella Resources.
Property in the Bowen Basin
A number of areas throughout the Bowen Basin have seen property prices rise in light of the mining boom, with one example being Isaac.
Figures from RP Data released last year show that prices in the region increased 30.7 per cent in the year to May 2012, while the three-year rise was measured at 46.8 per cent.
This will no doubt have brought significant returns to anyone who has bought investment property in the region – and give others the incentive they need to make a purchase.
As the Bowen Basin goes from strength to strength, it is likely to make even more of a name for itself as a property hot spot.