Big projects boost prospects

Mathew Tiller, head of research, LJ Hooker

The federal government hopes the budget’s infrastructure commitments and direct housing policies combine to address the housing affordability challenges in our most populous cities.

Leading the big-ticket spending is $5.3 billion for the Sydney basin’s second major airport at Badgerys Creek. The project – due to operate in 2026 – will be the catalyst for further infrastructure provisions, including new and upgraded roads in the western Sydney catchment. Houses and land in the surrounding suburbs, such as Bringelly, Austral and Luddenham, have already been the target of developers and investors looking to capitalise on the potential rezoning upside.

The Melbourne-to-Brisbane inland rail line received further funding this year. As well as linking the ports in Melbourne port – Australia’s busiest commercial marine point – and Brisbane, the line will invigorate regional markets along the alignment such as Wagga Wagga and Toowoomba, encouraging more businesses and residents to relocate.

There’s also $1bn in mainly railfocused infrastructure spending for Victoria. This includes $500m to upgrade regional rail, $100m for the North-East Rail Line and $30m for airport rail link planning.

Housing markets in regional areas along these rail routes should see some uplift. This includes suburbs in and around South Geelong and Waurn Ponds, which should benefit from an additional $100m spending on the duplication of part of the Geelong rail line and new platforms.

There is $1.6bn in new road and rail projects for Western Australia, including $700m for the Metronet rail project. In Queensland, $844m has been allocated for the Bruce Highway, which will improve travel times on the congested section between Brisbane and the Sunshine Coast.

While no single item in this year’s budget is expected to have a major impact on property markets, new infrastructure provides a positive outlook for property owners and opportunities for investors and developers in the suburbs surrounding these projects.