Aussies pump cash into US oil boom

Australian property investors have pumped more than US$2 million (S$2.53 million) into North Dakota just in the last six weeks, and are keen to further boost their portfolio based around the mining industry.

The mining boom in Western Australia has made it the strongest economy in the country. More than 1,000 migrants are reported to be heading into the area each week, set on making their fortunes from the incredible resource riches that the area has to offer.

The incredible growth has caused excitement amongst developers and investors alike and many are now looking to expand their portfolios through similar international opportunities, with the U.S. state of North Dakota tipped as the hottest area on the market.

North Dakota is currently building housing faster than any other state in America, in a bid to accommodate the thousands of migrant oil workers drawn to the region by the Bakken Formation oil boom. There are a number of parallels between the U.S. oil boom and the Australian mining boom, and savvy Australian investors are seeking out opportunities in North Dakota for serious investment.

Specialist commercial and residential developer North Dakota Developments LLC, which is building both executive hotel suites and single family homes in the town of Williston, at the centre of the oil boom accommodation crisis, is one company that is attracting a great deal of attention from the Australian market.

Sales from the company’s Brisbane-based partner have topped US$2 million in the last six weeks alone, according to Chief Executive Officer Robert Gavin.

He said: "The interest we’ve had from Australian investors has been incredible. The mining boom in Western Australia has triggered investors’ interest in resource booms across the globe and North Dakota is seen as the place to invest right now."

Andrew Batt, International Group Editor of PropertyGuru, wrote this story. To contact him about this or other stories email andrew@propertyguru.com.sg

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