With the changes implemented to the Australian Mining Industry taking effect, urban land prices in Queensland are seeing a drastic decline. Mount Isa, a city situated in the north-west on Queensland, is experiencing the brunt of these changes. Land prices in Mount Isa have fallen by 44 percent and land prices in Thangool by 49 over the last 4 years.
Australia is a global giant when it comes to the mining industry, thus the primary sector provides for the majority of the Australian workforce. When mining company Glencore decided to withdraw a third of their zinc from the market, this caused the demand for zinc to increase, thus boosting the trading price of the mentioned commodity. Overall, the cuts made to zinc production has benefitted Australian in a sense that Zinc is currently trading at more than $US3,000 a tonne on the London Metal Exchange. However, due to the ongoing factors such as the coronavirus and falling consumer confidence, the stock prices of Glencore have dropped severely. From a 52-week high of 357.12 USD/ per stock in April 2019 to a 52-week low of 142 USD/ per stock. The fall in stock prices has reduced Glencore’s market capitalization by more than half. Conversely, pulling back on production also meant that less labor was required.
As a city that was heavily reliant on the mining industry, Mount Isa was heavily impacted by the cuts imposed upon zinc and copper production. With more than 500 jobs lost, Mount Isa’s population declined quickly, straining the real estate market in the Northern territory. Along with the drop in share prices, mining cities are definitely under pressure as some enterprises begin to devalue.
This turn of events has negatively impacted real estate agents and property owners residing in these mining cities. As demand continues to decline while government fee increases, many real estate agents fear that these factors will drive buyers away from the city. As the cost of living is also higher in urban areas, these unattractive conditions will cause investors to look towards rural properties.
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Year 11 MHS Economics 2020 
wow i love Queensland! 🐱🚀😍
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