While the property market is currently experiencing fluctuations due to the impacts of rate hikes and some economic uncertainties, Australia’s pipeline of major infrastructure works planned for the next decade will be a significant driver of property demand.
Infrastructure projects are a major component of economic stimulation, and with the enhanced liveability, increased job prospects and amenities to become available, this will become a key influencer towards the performance of our property markets.
At AllianceCorp, we encourage the ‘buy and hold’ strategy for this very reason. Many expert investors refer to ‘time in the market’ as opposed to ‘timing the market’ and what it emphasises is that your returns will be generated over a longer period of time. For example, if you hold on to a property for 8, 10, 15 or 20 years, your investment properties will ride numerous property cycles, through the dips and highs and will gradually increase in value as time goes on as a result of factors like infrastructure projects, so it doesn’t matter so much as to when you buy – so long as you buy when you can next afford to.
To provide some insight into key locations tipped for major growth in the coming years, we have curated the major infrastructure projects expected to drive demand in their respective markets:
Western Australia:
While Perth remains one of the most affordable cities in Australia to buy property, figures from CoreLogic shows he median house price in Perth (as of February) was $561,700, less than the median price of a unit in Melbourne ($585,000) – however, the infrastructure works planned for the next five years is likely to make a considerable impact.
- The $1.5 billion Perth City Deal and $385 million Elizabeth Quay Projects will boost the Perth CBD and further project the capital’s appeal to interstate and international migrants alike.
These projects coincide with a range of other notable projects for the state, such as:
- The Perth Airport Upgrade, which will include constructing a third runway, multi-storey car parks and a new terminal amongst other upgrades throughout which will support forecasted growth in passengers and aircraft movements
- Edith Cowan University City Campus, a state of the art campus coming to the heart of Perth in late 2025
- Kings Square Fremantle, a major city development which will create more than 2,100 new local jobs for Fremantle once operational – injecting $358m into the local economy
According to new data, Western Australia’s population grew by a strong 1.8 per cent in the year to September 2022, helped by an unusually large increase in overseas migration into the state.
Queensland:
Queensland has allocated $37.6bn towards infrastructure projects over the next four years, which will largely contribute toward:
- The underground heavy rail project, Cross River Rail which will see a 10.2-kilometre rail line from Dutton Park to Bowen Hills
- The Gabba Stadium redevelopment ahead of the Brisbane 2032 Olympic and Paralympic Games
- Brisbane Live, which is set to be the CBD’s new home of entertainment, delivering 1,000 jobs at the peak of its construction
- The Queen’s Wharf resort development, a $3.6-billion demolition and redevelopment, will be a waterfront resort with hotels, apartments, restaurants and a casino
- Brisbane Metro transit system – the development of Brisbane’s first electric busway expected to make its maiden journey at the end of 2023.
Victoria:
Victoria is expected 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 including but not limited to:
- Melbourne Metro Tunnel, 9 km long twin train tunnels connecting the east and west of Melbourne with five new stations
- Melbourne Airport Rail Link, a train connecting Melbourne Airport to Victoria’s regional and metropolitan train network
- North East Link motorway tunnel, which will take 15,000 trucks off local roads every day and reduce travel times by up to 35 minutes
- West Gate Tunnel, a tunnel which is set to improve travel to and from Melbourne’s west and create a much-needed alternative to the West Gate Bridge
- Melbourne South East International Airport, an additional airport to better serve one third of Victoria’s population to international destinations
- Melbourne Arts Precinct Transformation, which will deliver 18,000 square metres of public parkland in the heart of Melbourne creating more space for outdoor art and performances
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.
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 largely within the health and lifestyle sector, including:
- The Women’s and Children’s Hospital, a $30.3 million upgrade to provide more space and facilities to the current hospital
- $400 million Flinders Medical Centre upgrade which will be a major a major expansion of the Margaret Tobin Centre for mental health; upgrade outdated wards; and increase the capacity of the facility by 136 beds
- Flinders Village residential student offering, a vibrant urban centre that will become a lifestyle focus for southern Adelaide inclusive of high-tech research facilities, cafés, shops and entertainment
- Adelaide Aquatic Centre, an $80 million dollar complex to be build on the existing centre in North Adelaide
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.
With so many infrastructure projects planned over the next date, this creates a prime opportunity for both prospective and existing investors to get into the market and secure an investment grade property before the market booms.
If you’d like to find out more about which location is the best choice for your investment portfolio, simply fill out the form below to request a no-obligation strategy session with one of our esteemed Senior Property Wealth Planners valued at $495 – totally FREE!