Suburb Reports
State Reports
News & Insights
Investor Strategies
Finance & Tax
Investor Calculators
YIP Advantage
Home news
Investors taking the long-term approach must study the major infrastructure projects that would benefit the local markets.
By Gerv Tacadena
Fact checked by Harrison Astbury
Published 15 Mar, 2023
Australia’s pipeline of major infrastructure over the next 10 years will be a significant driver of property market demand, says an expert.
InvestorKit head of research Arjun Paliwal said Australia is currently experiencing an infrastructure boom that will not only provide a huge boost to local economies but also enhance connectivity and liveability of their locations.
“Infrastructure projects are a key player in economic prosperity, and improvement in the economy is a stimulator of property markets by enhancing housing demand,” he said.
“By boosting economic growth, creating jobs, and enhancing liveability, infrastructure projects are a key influencer to increase demand in our property markets.”
These projects are also slated to support the growth in population, which is expected to reach 49 million by 2066.
Mr Paliwal said while the property market is currently experiencing fluctuations due to the impacts of rate hikes and some economic uncertainties, it is still best to take a medium- to long-term approach.
“For property investors, it’s important to understand how infrastructure projects influence their surrounding areas and spot the locations benefiting from them in the long run,” he said.
Here are the major infrastructure projects in major states that are poised to influence demand their respective property markets:
New South Wales has a $112.7bn budget expenditure on infrastructure, representing a 3.9% increase from last year.
Infrastructure construction accounts for 62.7% of the value of all projects being planned, followed by residential at 18.4%, commercial (11%), and industrial (7.9%).
Victoria is set to spend around $85.3bn in overall infrastructure over the next four years. Around 77.3% of the budget will be spent on infrastructure projects.
The Sunshine State allocated $37.6bn towards infrastructure projects over the next four years, a 17.9% increase from last year’s budget expenditure.
South Australia reported a 3.9% increase in infrastructure budget expenditure to $18.6bn. Almost the whole budget is for all projects under construction or in the pipeline.
Western Australia’s budget expenditure increased 10.4% to $33.9bn for the next four years.
For the next four years, the ACT has a $7.05bn budget expenditure on infrastructure.
–
Photo by Borko Manigoda on Pixabay.
By subscribing you agree to our privacy policy.
Gerv Tacadena is a journalist writing for Your Mortgage and Your Investment Property, which are part of the Savings Media Group. With a keen interest in the mortgage industry and housing market, he aims to help inform and educate Australians on the latest property news and updates.
Read more articles by Gerv Tacadena
Whether you’re looking to buy or refinance, our advisors are here to help.
Driving the gains are the suburbs’ low inventory levels and days-on-market.
Driving the gains are the suburbs’ low inventory levels and days-on-market.
Join our exclusive property investor mailing list and receive property data and research before the public, exclusive resources, offers and more.
News & Insights
Strategies & Finance
Investor Calculators
Suburb Reports
State Reports
© 2023 Savings.com.au Pty Ltd ·AFSL and Australian Credit License Number 515843 · Privacy Policy · Terms of Use
The entire market was not considered in selecting the above products. Rather, a cut-down portion of the market has been considered. Some providers’ products may not be available in all states. To be considered, the product and rate must be clearly published on the product provider’s web site. Savings.com.au, yourmortgage.com.au, yourinvestmentpropertymag.com.au, and Performance Drive are part of the Savings Media group. In the interests of full disclosure, the Savings Media Group are associated with the Firstmac Group. Read about how Savings Media Group manages potential conflicts of interest, along with how we get paid.
Savings.com.au Pty Ltd ACN 161 358 363 operates as an Australian Financial Services Licensee and an Australian Credit Licensee Number 515843. Savings.com.au is a general information provider and in giving you general product information, Savings.com.au is not making any suggestion or recommendation about any particular product and all market products may not be considered. If you decide to apply for a credit product listed on Savings.com.au, you will deal directly with a credit provider, and not with Savings.com.au. Rates and product information should be confirmed with the relevant credit provider. For more information, read Savings.com.au’s Financial Services and Credit Guide (FSCG) The information provided constitutes information which is general in nature and has not taken into account any of your personal objectives, financial situation, or needs. Savings.com.au may receive a fee for products displayed.
Explore the Savings Media Group network: Savings.com.au · YourMortgage · Performance Drive
Member of Property Investment Professionals of Australia
Recent Comments