property prices

How the Next Infrastructure Boom Could Boost Property Prices

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A record level of infrastructure spending indicates that now is the time to identify long term property investment opportunities.

Research from the OECD and the ABS highlights Australia’s rapid population growth, which is among the highest of all developing nations. Along with the population boom, as much as $288 billion has been assigned for infrastructure projects across the country over the next decade. Given this, DPN advises that areas with infrastructure on the rise bode well for long-term property investment.

Infrastructure Investment

Quality of life in Australia is reliant on good infrastructure, particularly transport links and access to utilities and health services. Therefore, areas with existing and planned infrastructure are logical choices when looking for an investment property. According to Infrastructure Australia, the unprecedented boom has a significant focus on transport. Furthermore, 56% of projects are located in the metropolitan and regional town centres in New South Wales and Victoria.

Population Growth

Australia’s population is growing at 1.6% per annum. Last year, Melbourne saw the third-highest rate of growth in all English speaking cities across the world. High demand on the east coast has supported property prices for a number of years and the data shows that infrastructure will need to continue improving. This means jobs will be created, the property market will require additional housing and outer suburb growth corridors will represent opportunities for long-term investors seeking to leverage the infrastructure boom.

Identifying Investment Opportunities

As an example of infrastructure leading to increased property prices, Sydney’s Cherrybrook has seen an increase in prices thanks in part to new rail infrastructure, despite a subdued market. The government is now investing in south western Sydney, with the development of Badgerys Creek airport. Therefore, surrounding suburbs with affordable house and land packages are poised for long-term price growth.

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On a backdrop of infrastructure spending like this across the country, property investors have opportunities for long-term price growth.

For further information, see DPN’s article: How the next infrastructure boom could boost property prices


Disclaimer: Chan & Naylor take no responsibility for the accuracy of any research material of contributors to our newsletter. Contributions to our newsletter such as this article, “Units or houses: the eternal investment question”, are meant to be educational only and Chan & Naylor does not endorse any promotional material promoted in their articles. Readers should do their own research to determine the accuracy of their material.

 
 
 
 

Warning

The material on this website has been prepared for general information purposes only and not as specific advice to any particular person. Any advice contained on this website is General Advice and does not take into account any person’s particular investment objectives, financial situation and particular needs. Before making an investment decision based on this advice you should consider, with or without the assistance of a securities adviser, whether it is appropriate to your particular investment needs, objectives and financial circumstances. In addition, the examples provided on this website are provided for illustrative purposes only.

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