Infrastructure is critical in fostering a countries economic wealth and development. With 44 new priority infrastructure projects being proposed for our Australian cities and regions this year, it can be overwhelming trying to discern the information available and make solid investment decisions for your future.
With a pipeline injection of $59 billion worth of investment into communities over the medium to long term, the residential property market is looking to directly reap the benefits [1].
It is important to note that not all markets are created equal and the question still remains:
"Where should I look for my first or next investment property?"
The Research Model.
Utilising the Meridian Australia research model, our research team delve into due diligence across a macro and micro level, with infrastructure being one of the macro indicators reviewed. Infrastructure can have a great influence on supply and demand for any given city and suburb within the city or region.
Many different factors produce demand, including both planned and in-progress infrastructure. Some examples include:
New transportation links;
Major industry development;
Educational facilities;
Improved utilities;
The introduction of health services
All of these factors contribute to driving demand, therefore property prices are likely to expect increased potential capital growth in the long term.
The Infrastructure Statistics.
In early 2021 Infrastructure Australia released a priority list, noting that a priority for Australia is to recover from the economic impacts of the COVID-19 pandemic [1].
Projects included on the list are located around Australia and include projects such as:
Western Sydney Freight Line and Intermodal Terminal (NSW);
Rail access to Webb Dock (VIC);
Australian Marine Complex Infrastructure capacity (WA);
Port of Burnie capacity (TAS);
Hobart Port Precinct capacity improvements (TAS);
Common user infrastructure at the Middle Arm Precinct (NT)
Will All Projects Have An Impact On Property Values?
No, not all projects will necessarily have a direct impact on the value of a selected residential property. The National Infrastructure Construction Schedule is a great guide to understanding the major projects currently underway across the country [4].
With a base understanding of the current and planned infrastructure in an area, it is imperative analyse the market again on a macro and micro level to identify some of the factors driving demand.
Market Analysis.
Regional NSW
Many market jurisdictions nationwide entered 2021 poised for big growth, but few places more so than regional NSW. Sales activity has been rising in regional centres right across the state, markets outside Sydney are well-positioned to benefit from trends driven by lifestyle and infrastructure spending.
Victoria
Throughout Victoria lifestyle and infrastructure are the current big drivers and with the advancement of the Suburban Rail Loop and expansions in medical and education precincts in the vicinity, one to keep a close eye on.
Queensland
The capital of Queensland, Brisbane, is benefiting from interstate migration and spending on major new infrastructure. With the recent announcement as host city of the 2032 Olympic Games, we can expect to see further infrastructure investment continuing into the future. The inner northern ring regions are seeing rising momentum for home buyers and investors alike.
Western Australia
Western Australia's capital Perth has a growing list of infrastructure projects being boosted by lower vacancy rates and improvements made to the WA economy [5].
South Australia
South Australia's capital Adelaide's North-South Corridor is identified in the South Australian Planning Strategy as having one of Adelaide's most important transport corridors.
Key Takeaways.
At Meridian Australia, our team of research and investment specialists are ready to simplify the property selection and acquisition process for you. Taking into account Australia’s growing infrastructure projects utilising independent analysis, our team is committed to finding the right property, at the right time, in the right market, at the right price.
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The Next Steps
Looking to get the property investment conversation started?
Or, just looking to stay in the loop?
Lauren Soderberg – Business Development Manager
P: (02) 9939 3249
Disclaimer: When considering purchasing a property, it's always prudent to seek the advice of an appropriately qualified professional to determine which strategy is most appropriate for your individual circumstance.
References
[4] Money Magazine