Markets in a ‘sound’ state despite shift: PIPA
The winds of change are sweeping through the country’s real estate market, but for Property Investment Professionals o...
A new report has highlighted 10 markets likely to take off due to planned infrastructure projects.
The report, compiled by Hotspotting.com.au founder Terry Ryder, described infrastructure spending as the greatest creator of wealth in real estate.
“Areas previously unattractive to buyers because of the distance to key destinations like CBDs or shopping precincts can be revolutionised by a new motorway connection, upgraded train services or a new bridge,” Mr Ryder said.
Three areas in South Australia made the hotspot list, including Aldinga Beach, and the Tonsley precinct.
Seaford and Aldinga Beach will benefit from an upgrade to the Southern Expressway in coming years, allowing for additional lanes and improved traffic flow in the region, Mr Ryder said.
Further in the future, an existing train line will be extended to connect both suburbs to Adelaide’s CBD.
Tonsley will host a new educational facility on the site of the former Mitsubishi plant, as well as a new industrial and commercial precinct.
According to Mr Ryder, Queensland is also pouring money into its infrastructure, with Kelvin Grove, and the entire Coast set for a boost.
A $1.5 billion tunnel project will increase transport infrastructure in Kelvin Grove, which already boasts university, medical and retail facilities.
The Redcliffe Peninsula has moved one step closer to a CBD rail connection, with the local, state and federal governments dedicating funding to the billion dollar project.
Meanwhile, construction is currently underway on a major hospital project on the Sunshine Coast, including a private facility and a health precinct.
Mr Ryder pointed to the “three Rs” as crucial to capital growth, namely road, rail links and river crossings.
“Transport infrastructure projects are massive generators of economic activity,” he said.
Medical and educational facilities also tended to kickstart local markets, he said.
“The presence of these complexes draws many thousands of teachers, students, doctors, nurses and other professional staff into the area each day – and that translates into demand for housing, both for purchase and for rental,” he said.