14 Nov Infrastructure unlocks suburban pockets – John McGrath
There are many factors that affect a suburbs value.
Infrastructure is one of those.
In his regular column on Switzer John McGrath takes a look at the relationship between new infrastructure and rising home values.
Here’s what he said:
In preparing this year’s McGrath Report, we wanted to look forward and consider the game-changing trends we expect to see in the Australian market over the next five to 10 years.
This week, let’s look at how new infrastructure is bringing the outer and middle rings of our East Coast capitals closer to the CBD, which is vital for city workers looking to afford their own home.
Major projects in Sydney, Melbourne and Brisbane are shortening the city commute and unlocking affordable outer suburban areas previously dismissed by city families for being too far to travel for work.
In turn, this is providing growth stimulus for local property prices.
History shows that major infrastructure can have a direct and meaningful impact on property prices, so we see a dual advantage for buyers purchasing along new infrastructure routes today.
In compiling our report, we worked with CoreLogic RP Data to prove a definitive link between new infrastructure and a boost in property values.
We also identified the best new projects currently underway that we feel will have a big impact on local property prices.
WestConnex – 2015-2023
WestConnex is the biggest transport project in Australia today. It involves a 33km link between Sydney’s far west through to the city, airport and Port Botany precinct, bypassing 52 sets of traffic lights.
The project will result in significant travel time savings by car and bus. Commuters travelling by car from Parramatta will save 25 minutes to the CBD and 40 minutes to the airport. About 10km of new bus lanes will halve the CBD commute from Burwood. WestConnex will also divert 3,000 trucks off Parramatta Road per day.
M5 East Motorway – 1998-2001
Moreton Bay Rail – 2013-2016
Moreton Bay is home to 350,000 people, making it Australia’s third largest LGA and one of the fastest growing, with the population to tip 500,000 by 2031.
This $1.147 billion project involves a new 12.6km dual-track rail line, with every full train taking 600 cars off the road. There will be six stations at Kippa-Ring, Rothwell, Mango Hill East, Mango Hill, Murrumba Downs and Kallangur connecting to the existing Petrie to Brisbane city line.
* by car
Inner City Bypass (ICB) – completed 2002
Melbourne Metro Rail Project – 2018-Mid 2020s
Beginning at Kensington and ending at South Yarra, this $11.5 billion project will include a mix of new underground rail tunnels, stations and interchanges within the CBD.
It is designed to increase the capacity of Melbourne’s busiest train lines and should allow for an additional 20,000 passengers in peak hour.
Increased services resulting in the prevention of overcrowding will shave 10 minutes off the CBD commute.
Eastlink Freeway – 2005-2008
Source: House price growth from CoreLogic RP Data