Surging demand has pushed the price of gold to new highs, triggering renewed mining investment and boosting economic activity in key mining towns.
Rising gold prices amid heightened geopolitical uncertainty, inflation concerns and increased central bank and retail buying have improved the profitability of many gold mining projects around Australia.
The gold price is sitting at almost US$4300 per ounce after rising about 58% in the past year – price growth that has vastly outperformed other asset classes such as property, shares, bonds and cryptocurrency.
ABS data shows expenditure on gold mining exploration rose by 7% in the September quarter, and was 20% higher in the year to September compared to the previous 12 months.
Separate ABS data shows mining is the highest-paid industry in Australia, with median weekly earnings of $2593 equating to about $144,000 per year – almost double the national median of $74,100.
Gold is expected to overtake natural gas as Australia’s second-biggest export after iron ore by the end of this financial year, according to a report from the Department of Industry, Sciences and Resources.
Several major gold miners are now scaling up production or extending the life of mines to take advantage of higher gold prices, with employment growth and increased economic activity during both construction and operational phases potentially influencing property prices in nearby towns.
Are properties in mining towns good investments?
REA Group senior economist Anne Flaherty said property prices in mining regions can rise substantially when increased investment in new mines leads to a sudden increase in demand for homes from workers.
“Generally we see an uplift in values when a site is announced and when it's being constructed,” she said.
“But once it’s in that operational phase, that’s when we see that big upswing in values.”
“In some mining towns we actually see home values more than double once those mines become operational.”
Port Hedland is known as the export point for most of Australia's iron ore, but a new gold mine nearby could boost demand for housing. Picture: Getty
Properties in mining towns can also have significantly higher rental returns than is typical, which Ms Flaherty said reflected the risk of investing in an area where demand was driven by one industry and in many cases one specific project.
Despite the potential for big gains, prices can also be volatile, and in some areas values have come crashing back to earth once a mining boom ends and conditions normalise.
“It's one of those investment classes that’s a little bit speculative,” Ms Flaherty said.
“When a project is announced there’s the capacity to make some incredible capital gains, but at the same time if the demand for the resource falls away or the mine is wound down, that correspondingly is going to lead to a decrease in values.”
With that in mind, there are several towns around Australia where increased investment in gold mining could potentially boost housing demand and drive property price growth.
Kalgoorlie-Boulder, WA
Kalgoorlie was originally established during Western Australia’s gold rush in the 1890s, but has gone through multiple boom and bust periods since then.
The recent gold price surge has triggered the latest upswing, with Australia’s largest gold mining company, Northern Star Resources, investing $1.5 billion in a new production facility at the Super Pit, a massive open-cut gold mine in Kalgoorlie.
The mine is forecast to produce 900,000 ounces of gold per year from 2028 onwards, with an estimated 14.4 million ounces remaining to be mined.
Mining is the key industry in Kalgoorlie, where rental yields of up to 9% are common. Picture: Getty
House prices in the suburb of Kalgoorlie itself rose about 8% in the past year and 21% in the past three years, but stronger house price growth has been recorded in other suburbs such as South Boulder (up 30%) and Boulder (up 11.9%)
Rental yields range from about 7-10% in most Kalgoorlie suburbs, which is well above the national rental yield of 4% for houses and 4.9% for units.
| Suburb | Property type | Median sale price | 12-month change % | Median asking rent | Rental yield |
| South Boulder | House | $325,000 | 30.0% | $550 | 8.9% |
| Boulder | House | $350,000 | 12.9% | $600 | 8.9% |
| West Lamington | House | $430,000 | 9.0% | $680 | 8.2% |
| Kalgoorlie | House | $375,000 | 7.9% | $670 | 9.0% |
| Hannans | House | $510,000 | 5.7% | $800 | 8.2% |
| Piccadilly | House | $411,500 | 3.7% | $650 | 8.2% |
| South Kalgoorlie | House | $370,000 | 3.6% | $650 | 9.1% |
| Somerville | House | $595,000 | 1.0% | $810 | 6.6% |
| Lamington | House | $420,000 | -0.5% | $680 | 8.4% |
| Somerville | Unit | $337,000 | 9.6% | $600 | 9.3% |
| Kalgoorlie | Unit | $282,500 | -2.2% | $550 | 10.1% |
Port Hedland, WA
While Port Hedland is best known for exporting iron ore from the Pilbara region, a major gold mine being developed by Northern Star is expected to create a further 1700 jobs during construction and operation.
The Hemi Development Project, about 85km south of Port Hedland, is estimated to hold about 11 million ounces of gold, which could make it one of the largest gold mines in Australia once it’s up and running.
Additional demand for housing for workers could bolster the property markets of Port Hedland and satellite suburb South Hedland, which are the nearest major towns to the mine.
The median rent in Port Hedland is $1200 per week – about 50% higher than in Sydney. Picture: realestate.com.au/sold
House prices in Port Hedland are up by about 6% in the past year and 15% over the past three years. Unit prices in South Hedland have grown by about 32% in three years.
Despite its remoteness, houses in Port Hedland aren’t cheap, with a median price of about $808,000. Gross rental yields range from 9.5% for Port Hedland houses to 11.4% for South Hedland units.
| Suburb | Property type | Median sale price | 12-month change % | Median asking rent | Rental yield |
| Port Hedland | House | $808,168 | 6.1% | $1,400 | 9.0% |
| South Hedland | House | $495,000 | -0.8% | $850 | 9.5% |
| Port Hedland | Unit | $441,901 | 3.1% | $863 | 10.3% |
| South Hedland | Unit | $315,000 | -2.5% | $725 | 11.8% |
Boddington, WA
Newmont Corporation, the world’s largest gold mining company, has proposed expanding operations at the Boddington Mine, one of the biggest in Australia.
That would extend the life of the mine to 2046, supporting jobs in the region for years to come.
The mine currently employs more than 2000 people, with about 30% of Boddington’s employed population working in the gold mining industry.
An expansion of a massive gold mine near Boddington in Western Australia could bolster housing demand in the area. Picture: realestate.com.au/sold
House prices in Boddington are up about 5% in the past year, and 72% in the past five years, with a typical house priced at $430,000. Buyer demand has more than doubled compared with a year ago, PropTrack data shows.
It’s worth keeping in mind that Boddington, located about 130km from Perth, is less remote than many other gold mines, which means drive-in-drive-out workers can be sourced from a wider area.
The mine is also modernising operations through automation, which may eventually reduce reliance on manual labour.
| Suburb | Property type | Median sale price | 12-month change % | Median asking rent | Rental yield |
| Boddington | House | $430,000 | 5.0% | NA | NA |
Bendigo, VIC
The Fosterville mine, about 25km from Bendigo, recently received approval for expansion that would increase production capacity and support more than 1000 jobs in the next decade, according to the Victorian state government.
Fosterville Gold Mine, the largest in Victoria, is situated just outside of Bendigo, where buyer demand has grown recently. Picture: Getty
The mine already employs about 850 people from across the region.
Like many regional Victorian towns, Bendigo has had a surge in buyer demand recently, and prices in the region are up about 9.4% in the past year, according to PropTrack data.
Real estate agent and Belle Property Bendigo Castlemaine Maldon principal Tim Noonan said more people had been relocating to Bendigo recently to work in the mining sector.
“The Fosterville mine has been bringing in extra management and professional staff, who are then in positions to pay good money for properties,” he said. “But what's pushing up property prices at the moment is the investors.”
Other early-stage projects are also underway across regional Victoria, including near Maldon, Castlemaine and Broadford, although these are yet to enter large-scale production.
| Suburb | Property type | Median sale price | 12-month change % | Median asking rent | Rental yield |
| Kangaroo Flat | House | $556,000 | 4.5% | $495 | 4.9% |
| Golden Square | House | $550,000 | 5.8% | $480 | 4.6% |
| Bendigo | House | $620,000 | 1.6% | $490 | 4.1% |
| Kennington | House | $602,500 | 3.9% | $480 | 4.3% |
| Epsom | House | $625,000 | 4.2% | $550 | 4.7% |
| Castlemaine | House | $751,250 | 0.2% | $480 | 3.5% |
| Strathfieldsaye | House | $745,000 | 8.0% | $600 | 4.3% |
| Eaglehawk | House | $567,500 | 11.3% | $490 | 4.6% |
| Strathdale | House | $663,000 | 8.7% | $530 | 4.2% |
| Huntly | House | $598,500 | 8.8% | $530 | 4.6% |
| North Bendigo | House | $515,000 | 8.8% | $480 | 4.9% |
| Flora Hill | House | $575,000 | 8.5% | $478 | 4.3% |
| White Hills | House | $590,000 | 11.6% | $493 | 4.3% |
| Long Gully | House | $480,000 | 7.3% | $460 | 5.0% |
| Broadford | House | $597,000 | 9.8% | $498 | 4.4% |
| California Gully | House | $488,500 | 6.5% | $470 | 5.1% |
| Heathcote | House | $528,750 | -6.4% | $460 | 4.5% |
| Maiden Gully | House | $780,000 | 3.0% | $595 | 4.0% |
| East Bendigo | House | $530,000 | -7.5% | $460 | 4.9% |
| Junortoun | House | $910,000 | -0.5% | $645 | 3.7% |
| Ascot | House | $642,500 | 4.9% | $550 | 4.5% |
| Quarry Hill | House | $600,000 | 0.0% | $475 | 4.2% |
| Jackass Flat | House | $625,000 | 13.8% | $550 | 4.6% |
| Spring Gully | House | $640,000 | 0.4% | $500 | 4.0% |
| Maldon | House | $739,000 | 7.9% | $460 | 3.2% |
| Kennington | Unit | $500,000 | 19.0% | $410 | 4.3% |
| Golden Square | Unit | $500,000 | 13.6% | $420 | 4.8% |
Orange and West Wyalong, NSW
Plans are underway to extend operations at Newmont’s Cadia mine, about 26km south of Orange in NSW, beyond 2031.
This would support continued employment in Orange, where more than 1300 residents work in the gold mining sector.
This West Wyalong house sold for $350,000 this year. Picture: realestate.com.au/sold
Meanwhile, Evolution Mining has secured approval to expand the Cowal Gold Mine near West Wyalong, about two and a half hours west of Orange.
The mine is West Wyalong’s major employer, and the project involves expanding the existing open-cut pit as well as digging three more, extending operations to 2042.
House prices in both towns have been relatively flat in the past few years, although the data shows buyer demand has risen significantly compared with a year ago. Prices in Blayney, about 30 minutes from the Cadia mine, are up almost 13% in the past year.
| Suburb | Property type | Median sale price | 12-month change % | Median asking rent | Rental yield |
| Orange | House | $699,000 | 1.3% | $560 | 4.2% |
| Blayney | House | $575,000 | 12.7% | $520 | 4.7% |
| West Wyalong | House | $369,500 | -1.7% | $550 | 7.7% |
| Orange | Unit | $493,500 | 5.0% | $450 | 4.7% |
Rosebery, Queenstown and Zeehan, TAS
While it’s smaller than many of the other mega-mines around the country, activity is ramping up at the Henty Gold Mine in Tasmania’s west, which has been mined since the 1990s and was recently acquired by mining company Kaiser Reef.
The mine has at least six years of reserves remaining, although further exploration is underway in the area.
The nearby towns of Rosebery, Zeehan and Queenstown have some of the most affordable home prices in Australia, with median house prices below $200,000.
Queenstown in Tasmania has a long history of mining, as well as some of the most affordable homes in Australia. Picture: realestate.com.au/sold
Prices rose about 7% in Queenstown an Rosebery in the past year, while values have tripled in Zeehan and Queenstown compared with a decade ago, when a typical house could be purchased for less than $70,000.
| Suburb | Property type | Median sale price | 12-month change % | Median asking rent | Rental yield |
| Rosebery | House | $190,000 | 7.0% | NA | NA |
| Queenstown | House | $187,500 | 7.0% | $290 | 8.9% |
| Zeehan | House | $175,000 | -12.5% | $295 | 8.9% |
English (US) · 