Australia’s pipeline of major infrastructure over the next 10 years will be a significant driver of property market demand, says an expert.
InvestorKit head of research Arjun Paliwal said Australia is currently experiencing an infrastructure boom that will not only provide a huge boost to local economies but also enhance connectivity and liveability of their locations.
“Infrastructure projects are a key player in economic prosperity, and improvement in the economy is a stimulator of property markets by enhancing housing demand,” he said.
“By boosting economic growth, creating jobs, and enhancing liveability, infrastructure projects are a key influencer to increase demand in our property markets.”
These projects are also slated to support the growth in population, which is expected to reach 49 million by 2066.
Mr Paliwal said while the property market is currently experiencing fluctuations due to the impacts of rate hikes and some economic uncertainties, it is still best to take a medium- to long-term approach.
“For property investors, it's important to understand how infrastructure projects influence their surrounding areas and spot the locations benefiting from them in the long run,” he said.
Here are the major infrastructure projects in major states that are poised to influence demand their respective property markets:
New South Wales
New South Wales has a $112.7bn budget expenditure on infrastructure, representing a 3.9% increase from last year.
Infrastructure construction accounts for 62.7% of the value of all projects being planned, followed by residential at 18.4%, commercial (11%), and industrial (7.9%).
- WestConnex motorway will connect western and south-western Sydney with the city, Western Sydney Airport, and Sydney Metro to the new airport.
- There are regional hospital redevelopment projects in Shellharbour, Shoalhaven, and northern NSW regions of Tweed Heads, Lismore, and Albury in the south.
- The Inland Rail will also connect the regional hubs of Albury, Wagga Wagga and Dubbo to the rail line.
Victoria
Victoria is set to spend around $85.3bn in overall infrastructure over the next four years. Around 77.3% of the budget will be spent on infrastructure projects.
- The major projects in the state capital include the Melbourne Metro Tunnel, Melbourne Airport Rail Link, North East Link motorway tunnel, West Gate Tunnel, Melbourne South East International Airport, and Melbourne Arts Precinct Transformation.
- The local economy of Geelong will benefit from the development of Geelong Fast Rail, Geelong Convention and Exhibition Centre, and Barwon Women’s and Children’s Hospital.
Queensland
The Sunshine State allocated $37.6bn towards infrastructure projects over the next four years, a 17.9% increase from last year’s budget expenditure.
- The underground heavy rail project, Cross River Rail, is one of the major projects in the states.
- There is the Gabba Stadium redevelopment for the Brisbane 2032 Olympic and Paralympic Games.
- Brisbane Live, which is set to be the CBD’s new home of entertainment, is set to deliver 1,000 jobs at the peak of its construction.
- Other notable projects include the Queen’s Wharf resort development, and Brisbane Metro transit system.
South Australia
South Australia reported a 3.9% increase in infrastructure budget expenditure to $18.6bn. Almost the whole budget is for all projects under construction or in the pipeline.
- The major projects are in the health and lifestyle sector, including the Women’s and Children's Hospital, $400 million Flinders Medical Centre upgrade and expansion, Flinders Village residential student offering, and Adelaide Aquatic Centre.
- There are also transport projects such as the North-South Corridor, Adelaide Airport expansion, $685 million Fleurieu Connections Main South Road, and Victor Harbor Road duplication project.
Western Australia
Western Australia’s budget expenditure increased 10.4% to $33.9bn for the next four years.
- Perth will benefit significantly from METRONET, a 72km new passenger rail with 23 new stations.
- Other projects include new Women and Babies Hospital, WA Comprehensive Cancer Centre, Edith Cowan University city campus, and Curtin University CBD knowledge and innovation precinct.
ACT
For the next four years, the ACT has a $7.05bn budget expenditure on infrastructure.
- Some of the major project underway are the ACT Light Rail Stage Two project, UNSW Canberra Campus, Canberra Institute of Technology (CIT) Woden campus, and the redevelopment of the Canberra Technology Park Education Precinct.
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Photo by Borko Manigoda on Pixabay.
