Having good infrastructure is essential for a city and its suburbs. Decent transport links enable a higher rate of engagement and often cause housing prices to rise.
In the most recent Federal budget, infrastructure improvement was a key focus – with the government committing more than $70 billion committed to numerous projects.
With such major investment, there will surely be an impact on housing in areas receiving upgrades. Which markets will therefore be most impacted for better or for worse?
Western Sydney Airport
Sydney is in need of a second airport, which has been proposed as being Western Sydney Airport at Badgerys Creek. It has more than $5 billion in funding from the latest Federal budgets – aiming to get it up and running by 2026.
Having an airport near to properties unfortunately doesn’t push prices up too much. There is no doubt however, that having a second airport outside of Sydney will boost local employment. More jobs will mean a higher demand for housing, so in terms of the bigger picture, house prices in western Sydney will grow.
Inland Rail Link
Regional areas of Australia tend to be far more affordable than houses in the big cities, but one of the major downsides to this kind of lifestyle is the lack of jobs. The new Inland Rail Link between Brisbane and Melbourne, will attempt to remedy this.
The Inland Rail Link project has received $8.4 billion in funding, and is expected to begin construction this year.
This new rail link will provide jobs during the construction – with an estimated 16,000 at the height of construction. It is also expected to lead to greater job growth in key regional areas such as Toowoomba, Parkes and Northern Victoria.
A larger amount of available jobs means greater population support of housing price growth in an area.
The National Rail Program
The residential market in Perth is one of the hardest markets in Australia. It has consistently seen backwards-sliding house prices and a low level of demand for a number of years. In total, $1.6 billion has been committed from the latest budget to improving its infrastructure.
The key focus for infrastructure improvement in Perth has been the Metronet rail line. This line will aim to connect the Perth suburbs more effectively, so that when the state economy begins to boom again, the city will be ready for the expected growth.
Perth is not however, the only city expected to benefit from the National Rail Program. The $10 billion allocated to projects across Australia will ensure that other cities benefit from rail scheme improvements over the coming years.
Other service improvements include the rail line to Tullamarine Airport in Melbourne, the AdeLINK light rail line in Adelaide, and the Cross River Rail line in Brisbane. There will also be a rail link to the new Western Sydney Airport.
These projects will be prioritised based on the business cases put forward, but it is worth noting that they will improve mobility around all capital cities involved.
The spending on infrastructure outlined in the latest budget, has perhaps been the most ambitious for a number of generations. Australia will see long-term growth as a result of these improvements, and the capacity issues of the capital cities will be eased somewhat – especially with improvements to infrastructure in the right places.