Why Infrastructure is Key for Property Investors

Why Infrastructure is Key for Property Investors

Infrastructure development is frequently associated with strong demand in local markets, that drives economic growth, employment and productivity.
Savvy investors often seek locations with infrastructure development in the pipeline as it can unlock future capital growth.

Infrastructure Provides Essential Services

These can be classified into three main categories:

  1. Utilities: electricity, gas, communications and water
  2. Social: schools, hospitals and community facilities
  3. Transport: airports, roads, and rail

Upcoming Infrastructure Boosts Local Economy

With state-funded projects across Australia these can provide attractive opportunities for those looking to invest in property.

Planned projects are strong indicators of employment growth and due to the strong correlation between job growth and property price growth, investors would be smart to look for opportunities in areas where infrastructure projects have been announced.

There is historical evidence to suggest that new infrastructure projects boost the local economy by creating new jobs and attracting more people to a precinct. New infrastructure also provides indirect benefits to the community such as consumer expenditure and social benefits of community development – all of which drive demand.

Specifically, road developments and upgrades play a vital role in driving up property values, as these projects make areas more accessible.

Where To Invest Today?

Queensland is a state with improved economic and population growth which would suggest the Brisbane housing market is positioned very well for some solid growth. Queensland has the highest interstate migration in Australia with people exiting Sydney and Melbourne due to the high property prices keeping them out of the market.

The Brisbane City Council is heavily investing in to the infrastructure in Brisbane, creating more to see and do in a clean and green Brisbane, including new recreational river hubs and opportunities for tour boats to help locals connect with Moreton Bay and its beautiful islands.

South-East QLD Major Infrastructure Projects

Queens Wharf Redevelopment | 1 of the largest developments undertaken in QLD, 20% of CBD. Tourism spend $1.6bn p/y
Invested: $3bn
Jobs: 8,000
Completion: 2024

The new world-class integrated resort development will put Brisbane on the map as a tourism, leisure and entertainment destination. Watch video HERE.

Brisbane International Airport 2nd Runway | One of the largest aviation projects globally. By 2035, will handle 50 million passengers a year

Invested: $1.35bn
Jobs: 2,700
Completion: 2020

Once fully operational in 2020, the runway was estimated to effectively double Brisbane Airport’s current capacity, drawing comparisons with Singapore’s Changi and Hong Kong International. Watch video HERE.
Brisbane Airport has said previously it expected annual passenger traffic through its domestic and international would more than double from 22 million in 2014 to 50 million by 2035. It also forecast the number of annual aircraft movements would grow from 227,000 currently to 360,000 by 2035 and 500,000 by 2045.

Brisbane Metro | A high frequency, high capacity public transport system along a 21km route servicing 18 stations

Invested: $944m
Jobs: 7,000
Completion: 2022

Brisbane Metro was first announced in 2016 as a solution to address the current congestion and capacity challenges facing Brisbane’s bus network.

Brisbane Metro will cut travel times, reduce congestion, and put more buses in the suburbs. Delivering the first stage of the new Brisbane Metro will mean a 21-kilometre turn-up-and-go service, with two dedicated lines connecting 18 stations from Eight Mile Plains to Roma Street and Royal Brisbane Women’s Hospital to University of Queensland. Find out MORE.

Recently opened
Howard Smith Wharves – the new river hotspot, Brisbane’s newest dining and entertainment precinct. Formerly industrial land for decades, Council undertook an extensive process to transform the 3.43-hectare site into a vibrant riverfront destination.

Recent enhancements
With its Botanic Gardens, Planetarium, biking and walking trails, picnic areas and panoramic lookout, Mt Coot-tha is one of Brisbane’s top destinations. Recognising its growing popularity, Council is investing $14.8m in enhancements including a green leisure precinct including a zipline.

New Bikeways underway
Construction has started on two of Brisbane’s busiest cycling corridors.

How To Build A Sustainable Investment Property Portfolio

There has been a lot of negative talk in the media about property prices coming down. Yes, there has been a downturn in Sydney and Melbourne but 15 million people live elsewhere and there are more than two property markets in Australia, hundreds in fact. Also, it’s worth noting that unless you purchased in these areas in the last year or so the value of your asset would have grown considerably.

This is a good reminder however, you don’t buy into a market at the top of a growth cycle as typically a boom will last for 3-4 years and then go through a correction phase, which is exactly what we are seeing in Sydney and Melbourne. Perth did this between 2002 and 2006/07, the median house price doubled in value in 4 years, then it went through a correction. The media are putting all property markets under the one umbrella which is totally flawed and not the case at all.

The Perth market has been underwhelming since 2010. However, there are some positive signs that Perth’s economy has stabilised and it’s anticipated to strengthen in 2019. The resources sector is heating up with many new projects in the pipeline, jobs are being created and population growth is going in the right direction. The rental vacancy rates across Perth have rapidly reduced over the last 12 months with the vacancy rate now under 3%.

If you’d like to discuss any of the above or would like to have a strategy and planning session with one of our consultants we’d be happy to discuss your individual circumstances. You can reach us on 08 6323 2306.

Grab a Copy of Our E-book

We’ve put together our essential guide on how to build a sustainable property portfolio. Get your copy HERE. https://curtisproperty.online/w-guide

More from our experts

Changes To Your Superannuation Insurance From 1st Of July 2019

26th June 2019 Be aware of insurance changes starting from 1st July 2019 Starting from 1st July 2019, you could

Why Infrastructure is Key for Property Investors

Infrastructure development is frequently associated with strong demand in local markets, that drives economic growth, employment and productivity. Savvy investor

What’s Your Current Psychology Around Your Desire to Build Wealth?

Regardless if you’ve started investing or it is something you are looking in to, your psychology will be playing a role in how you approach your wealth creation.We meet