Which infrastructure projects are best for housing?
Date：2017/06/20
By Nerida Conisbee
15 JUN 2017
[REA Group Ltd] In the most recent Federal budget, infrastructure was a key focus, with more than $70 billion committed to different projects.
Such a major investment will have an impact on housing in those areas, so which markets will be most affected, either for the better or the worse?
Western Sydney Airport
Sydney needs a second airport and the proposed Western Sydney Airport at Badgerys Creek got more than $5 billion in funding in the Federal budget, with the aim of getting it up and running by 2026.
Having an airport nearby generally doesn’t do a huge amount for property values in a positive sense, but there’s no doubt the location of the airport in the outer west of Sydney will encourage employment in that part of the city. More jobs means stronger demand for housing, so overall, for house price growth in western Sydney, the airport will be a positive.
Inland Rail Link
Regional areas are far more affordable than many capital cities, but one of the biggest barriers for people to move there is a lack of jobs. The new Inland Rail Link, from Brisbane to Melbourne, which received $8.4 billion in funding, is expected to start construction this year.
The new rail line will provide jobs during initial construction, expected to be around 16,000 at its peak, however it’s also expected to lead to greater jobs growth in key regional hubs such as Toowoomba, Parkes and northern Victoria. More jobs means greater population supporting house price growth in these areas.
National Rail Program
The Perth residential market is one of the toughest in Australia with prices going backwards and low levels of demand. In total, $1.6 billion was committed to improving infrastructure in WA with a key focus being the Metronet rail line. The Metronet will better connect Perth’s suburbs so that when that state’s economy starts to fire again, the city will be well prepared for growth.
Perth is not the only city expected to benefit from the National Rail Program with $10 billion allocated to projects around Australia. Others include the rail line to Tullamarine Airport in Melbourne, the AdeLINK light rail in Adelaide, the Cross River Rail in Brisbane and a rail line to the new Western Sydney airport. Prioritisation of these projects will be dependent on business cases put forward, but they will all improve mobility around our capital cities.
Perth is not the only city expected to benefit from the National Rail Program with $10 billion allocated to projects around Australia. Others include the rail line to Tullamarine Airport in Melbourne, the AdeLINK light rail in Adelaide, the Cross River Rail in Brisbane and a rail line to the new Western Sydney airport. Prioritisation of these projects will be dependent on business cases put forward, but they will all improve mobility around our capital cities.