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A masterplan to transform a massive parcel of land owned by the Port Kembla Steelworks will drive property price growth in the Illawarra region, here’s what you need to know.
Infrastructure developments are a proven driver of property price growth, and if you’re living in the Illawarra region, a masterplan that’s just been unveiled by BlueScope promises to have a huge impact. The company has long been one of the area’s largest employers.
More than 200hectares of unused land next to BlueScope’s Port Kembla Steelworks will be transformed into a state-of-the-art industrial precinct over the next few years. Putting this into perspective, this site is larger than the Melbourne CBD.
The development is likely to create up to 30,000 jobs for the region in growing industries such as defence, renewable energy, technology and research. It is also forecast to generate up to $5 billion annually for the local economy. A ‘super TAFE’ is also planned as a training and education site for future workers in the Illawarra region.
However, the development site won’t just become an industrial concrete jungle. More than 60 per cent of the area will be retained as green or blue (water) space, including public parklands, and the community will be widely consulted during the planning process.
To give you an idea of the scale, the 200 hectares of land that’s being developed could house 400 stadiums the size of the Melbourne Cricket Ground. It is a big development, and due to its size and positive future economic impact on the region, it’s likely to be given State Significant Infrastructure Status and associated funding by the New South Wales government.
The development site has been strategically chosen due to its deep seaport access, as well as the existing six-lane highway and significant rail infrastructure.
Significantly, the development has the overwhelming public backing of Illawarra residents, with over 86% of community survey respondents agreeing that it represents a significant opportunity for the region.
BlueScope has scheduled the project to be completed before its 100-year anniversary celebrations in 2028, and the planning and community consultation processes are already well underway.
Property price growth is driven by demand. With up to 30,000 new jobs being created by the BlueScope project, it will inevitably increase demand for properties in the Illawarra region from both owner-occupiers and tenants. More and more people will be both working and living in the area. DPN’s investment suburbs that are likely to benefit include Horsley in Wollongong and Cambewarra, which is 50 minutes south, near Nowra.
The redevelopment site is larger than the Melbourne CBD and will see 30,000 new jobs, plus a $5 billion boost to the local economy.
If you are looking to invest in property, investing in an area like the Illawarra region where major developments like BlueScope’s are about to get underway is a strategic move. Investors will reap the benefits in terms of capital growth and rental income generation when the increased demand for property in the area inevitably comes.
Significantly, the land redevelopment isn’t BlueScope’s only additional infrastructure commitment to the area. Approval has also been granted for the development of an additional BlueScope steel factory in Erskine Park to cater for the growing needs of Australia’s building and construction industry.
The plant is scheduled to be operational by 2025, supplying more than 240,000 steel rooftops and 80,000 steel house frames each year. The company’s annual steel plate production will increase from 430,000 tonnes to approximately 600,000, further boosting the local economy.
Other infrastructure projects planned by the New South Wales state government for the Illawarra region include:
These development swill all help to enhance living, working and travelling conditions in the region. They should also have a positive effect on local property prices, which will benefit property investors.
Over 300,000 people already live in the Illawarra, and the latest population projections indicate that an additional 90,000 will call the area home by 2041.
Our expert team at DPN can help you with all aspects of property finance, investment and ongoing management for properties in the Illawarra region and many other strategic locations across Australia. We also offer multi-rental income solutions like dual-income and duplex properties to supercharge your investment return.
Contact us today to find out more!
Sources
https://www.bluescope.com/news/100-year-plan-for-port-kembla-surplus-land
Steelmaker Unveils Port Kembla Transformation(theurbandeveloper.com)
BlueScope Steel unveils masterplan for disused land, scraps wind tower plant - ABC News
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